ONGC shares fall 7% in two days post Q4 results - Buy, sell or hold?

ONGC share price: Shares of Oil and Natural Gas Corporation Ltd (ONGC) declined for the second straight session on Friday, declining over 2% in today’s session. In the afternoon trade, ONGC shares were trading 2.28% lower at Rs 267.70 apiece on the BSE.

The counter has slipped for the second session following its Q4FY26 results, which came post market hours on Tuesday earlier this week. With the stock market closed on Thursday, May 28, due to Bakri Id, the counter hasslipped nearly 7% over the active trading sessions during this period.

ONGC share price targets

Following the earnings announcement, brokerages have tweaked their target prices and estimates. JM Financial has maintained a ‘Buy’ rating on the stock, though it trimmed its target price to Rs 330 from Rs 340. Calling it a weak quarter, the brokerage noted that the EBITDA missed consensus estimates. 

“In all, we are cutting FY27E/28E consolidated EBITDA by 7-8% accounting for limited output growth and higher DW write-off,” JM Financial said.

While PL Capital retained its ‘Accumulate’ rating, revising its target price down to Rs 297 from Rs 309. “Given the continued weakness in recent production trends, we maintain conservative production assumptions. We build in FY27 standalone production at 19.8mmt for oil and 20.1bcm for gas (previous: oil 20.0mmt; gas 20.6bcm),” it said.

HDFC Securities maintained a ‘Reduce’ rating on ONGC, though it raised its target price to Rs 276 from Rs 220. The brokerage expressed concern over an expected fall in oil and gas production.  

“OMCs are still making losses on the sale of auto fuels despite reduction in Special Additional Excise Duty (SAED) by the government and increase in retail selling price by OMCs,” HDFC Securities said.