Oil Stocks Rally as JPMorgan Predicts Strong FY26 Earnings

The brokerage firm upgrade

to 'Overweight' from 'Neutral', raising its target price to ₹463 from ₹424. JPMorgan also increased its price targets for L to ₹481 (from ₹417) and for L to ₹199 (from ₹182), while maintaining an 'Overweight' rating on both. While JPMorgan expects inventory losses to impact the upcoming Q1 results, it believes that robust refining margins, particularly in diesel and jet fuel, will more than compensate for this negative effect. The brokerage also forecasts sequential growth in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for both HPCL and BPCL. This positive outlook from a major financial institution has seemingly boosted investor confidence in these oil stocks.