Oil India Ltd extended their gains for a second consecutive session

$OIL Shares of Oil India Ltd extended their gains for a second consecutive session on Tuesday, August 11, rising more than 4% after the state-owned oil and gas producer reported its Q1 FY27 results on Friday. A positive view from brokerage CLSA, which highlighted production growth and the expansion of the Numaligarh refinery as key triggers, further supported the stock. Oil India shares were trading around 4.4% higher in late-morning deals, making the stock one of the top gainers on the Nifty Midcap. The shares had gained 2.3% in the previous session, taking their two-day advance to around 6.8%. Analyst has retained its ‘Outperform’ rating on Oil India with a target price of ₹550 per share, implying an upside of more than 21% from Monday’s closing level. The brokerage said Oil India’s Q1 profit after tax came in 9% above its estimates, supported by higher other income. However, EBITDA and EBIT were 3% and 4% below expectations, respectively, primarily due to lower crude oil realisations. Oil production touched a 14-year high during the quarter, although gas production was below. Analyst identified sustained growth in oil and gas production and the ramp-up of the Numaligarh refinery expansion as key growth triggers for the company. Oil India’s standalone net profit surged 252.8% year-on-year, while revenue from operations rose 58.8%. The company said its standalone profit after tax was the highest ever, driven in part by an 11% increase in crude oil production and crude oil price realisation of $98.73 per barrel.