Oil India - Fortifying Growth Through Integrated Expansion: Yes Securities

Yes Securities Report

Oil India Ltd. remains a key player as a leading integrated company across the energy value chain in India. The company is on track to meet its ambitious target of 4 million metric tonne of oil and 5bcm of gas production by FY26, backed by accelerated drilling activities in its rich Baghjan field, which will see the number of wells increase from 61 to ~80 in FY25 and 100 by FY27.

The company is positioned to capitalize on favorable pricing with crude expected to average ~$70/barrel of oil and natural gas ~$6.75- 7/metric millon British thermal unit for FY26-27 supported by global demand-supply balance and suitable Indian government policies.

The ongoing Numaligarh Refinery Ltd. expansion is set to triple its capacity to 9 mtpa by Dec-25. Infrastructure projects like the Indradhanush Gas Grid Ltd. will connect remote gas fields to key markets enhancing accessibility across India’s northeastern states, unlocking opportunities for increased domestic gas sales and reducing reliance on gas imports.

We build-in NRL’s GRMs at ~$14- 14.5/bbl through FY26-27, the company’s expanding downstream presence will offer higher profitability compared to its upstream operations, allowing for enhanced shareholder value.

We maintain a Buy rating on the stock with a target price of Rs 833/share.

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