OIL vs ONGC
Side-by-side comparison of Oil India Ltd. and Oil & Natural Gas Corporation Ltd.. Descriptive only — not investment advice.
Oil India Ltd.
Energy
Quality Score: 65/100
Oil & Natural Gas Corporation Ltd.
Energy
Quality Score: 54/100
At a glance
| Metric | OIL | ONGC |
|---|---|---|
| Quality Score | 65/100 | 54/100 |
| P/E (trailing) | 12.7 | 7.5 |
| Forward P/E | 8.4 | 5.7 |
| ROE | +12.7% | +12.7% |
| Profit margin | +19.5% | +6.3% |
| Debt-to-equity | 58.74 | 42.55 |
| Dividend yield | +3.67% | +7.51% |
| 1Y price return | +30.7% | +2.9% |
| From 52w high | -2.4% | -19.9% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.10 | 2.13 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Oil India (OIL) is a state-owned upstream E&P company trading at ₹518.3 as of May 2026, up 30.68% over 12 months and near its 52-week high with a forward PE of 8.40 against a trailing PE of 12.74. Q4 FY26 results showed PAT growth of 62-76% year-on-year, record drilling activity, and the company's highest daily production in a decade. The balance sheet carries a D/E of 58.74 with a rising debt trend, and FCF consistency across reported years remains limited.
ONGC trades at ₹246.25, 19.9% below its 52-week high and below both the 50-DMA (₹278.66) and 200-DMA (₹254.00), against a trailing PE of 7.49 and a dividend yield of 7.51%. The company ranks 3rd of 6 in the Energy sector on PE and quality score (53/100), and carries a D/E ratio of 42.5 alongside an ROE of 12.7% that has not exceeded 15% in any tracked year.
Pros
- ✓Q4 FY26 PAT of approximately ₹2,424 crore represents 62% year-on-year growth, with revenue crossing ₹10,000 crore — the highest quarterly production reported in a decade.
- ✓Forward PE of 8.40 against a trailing PE of 12.74 implies the market is pricing in meaningful earnings expansion in the near term.
- ✓Dividend yield of 3.67% alongside earnings growth of 60.4% over 5 years reflects improving cash returns to shareholders from a low base.
- ✓Price is above both the 50-DMA (₹476.55) and 200-DMA (₹433.80), with a -2.39% drawdown from the 52-week high — one of the narrowest drawdown profiles in recent memory.
- ✓Dividend yield of 7.51% alongside a recommended final dividend for FY2025-26, translating to measurable income return at the current price level.
- ✓Forward PE of 5.72 is below the already-low trailing PE of 7.49, implying consensus earnings estimates ahead of the current period, and the stock trades at the lower end of the Energy sector PE range (sector span: 4.70 to 22.0).
- ✓FCF was positive in 4 of the tracked years, and the company has declared strategic intent to expand its natural gas output — framing a potential product-mix shift toward higher-margin gas volumes per management commentary from June 2026.
- ✓At a quality score of 53/100, ONGC sits above GAIL (16) and IOC (49) within the tracked peer set, and its 5-year earnings CAGR of 47.8% — while base-driven — reflects a period of meaningful income recovery.
Cons
- ✗FCF was positive in only 2 of the available reported years, and the consistency score of 35/100 indicates that profitability has not been reliably sustained across market cycles.
- ✗Debt-to-equity stands at 58.74 with a rising debt trend; in an E&P business with commodity-price exposure, elevated and growing leverage amplifies downside risk if crude prices soften.
- ✗ROE of 12.74% exceeded 15% in only 2 of the available years, and the quality score of 57/100 places OIL in the mid-tier of its Energy sector peer group rather than among the higher-quality names.
- ✗At a trailing PE of 12.74, OIL carries the highest valuation among directly comparable peers with available data (ONGC 9.90, COALINDIA 9.16, BPCL 4.94), leaving less margin of safety if earnings momentum reverses.
- ✗ROE of 12.7% has never cleared 15% in any tracked year and the 5-year persistence consistency score is 25/100, indicating returns that have not consistently covered a typical cost of equity.
- ✗D/E ratio of 42.5 is anomalously high for a non-financial company operating with a 6.25% profit margin; any structural change in pricing, subsidies, or crude-market dynamics amplifies debt-service risk.
- ✗Price is below both the 50-DMA (₹278.66) and 200-DMA (₹254.00) with RSI at 28.76; the stock is down 8.49% over 3 months, down 19.92% from its 52-week high, and no support levels have been identified in the dataset.
- ✗5-year revenue growth of 1.9% is near-flat, leaving limited revenue cushion; a legal dispute over the Cambay Block (Vedanta challenge reported May 2026) adds an unresolved operational overhang.
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