Shares of Oil and Natural Gas Corporation (ONGC) experienced a significant decline, falling almost 7% across two trading sessions following the announcement of its Q4 FY26 financial results. The state-owned energy giant's shares were down over 2% on Friday, May 29, 2026, trading at Rs 267.70 apiece on the BSE.
The downturn began after ONGC reported its Q4 FY26 earnings post-market hours on Tuesday. With the market closed on Thursday for Bakri Id, the stock's cumulative fall across the active trading days reached nearly 7%.
Brokerages Adjust ONGC Target Prices and Ratings
Following ONGC's earnings report, several prominent brokerages revised their outlook and target prices for the stock, reflecting a mixed sentiment regarding its future performance.
HDFC Securities: 'Reduce' Rating
- HDFC Securities maintained a 'Reduce' rating on ONGC, despite raising its target price to Rs 276 from Rs 220.
- The brokerage cited concerns over an anticipated decrease in oil and gas production.
- Additionally, HDFC Securities noted that Oil Marketing Companies (OMCs) continue to face losses from auto fuel sales, even after government reductions in Special Additional Excise Duty (SAED) and retail price increases by OMCs.
JM Financial: 'Buy' Rating
- JM Financial reiterated its 'Buy' rating for ONGC but trimmed its target price from Rs 340 to Rs 330.
- The firm characterized ONGC's Q4 as a “weak quarter,” highlighting that EBITDA fell short of consensus estimates.
- JM Financial stated, “In all, we are cutting FY27E/28E consolidated EBITDA by 7-8% accounting for limited output growth and higher DW write-off.”
PL Capital: 'Accumulate' Rating
- PL Capital retained its 'Accumulate' rating but revised its target price downwards to Rs 297 from Rs 309.
- The brokerage adopted conservative production assumptions due to “continued weakness in recent production trends.”
- PL Capital now projects FY27 standalone production at 19.8 million metric tonnes (mmt) for oil and 20.1 billion cubic meters (bcm) for gas, down from previous estimates of 20.0 mmt and 20.6 bcm, respectively.
Disclaimer: This article provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.