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Top Oil & Gas Stocks in India by Market Capitalization

Investing in oil and gas stocks provides exposure to companies engaged in the exploration, production, refining, and distribution of petroleum and natural gas products. Given India's heavy reliance on imported crude oil, the sector remains crucial for energy security and economic growth. For investors, understanding the top oil and gas stocks by market capitalization is essential before making investment decisions through a trading account and demat account.

What are Oil & Gas Stocks?

Oil and gas stocks represent ownership in companies involved in various stages of the petroleum industry, including:

  • Upstream Operations: Exploration and production of crude oil and natural gas.​

  • Midstream Operations: Transportation, storage, and wholesale marketing of crude or refined petroleum products.​

  • Downstream Operations: Refining of crude oil and processing and purifying of raw natural gas, as well as marketing and distribution of products derived from crude oil and natural gas.​

Investors can participate in these segments by opening a trading account and demat account to facilitate the buying and selling of shares in these companies.

Oil & Gas Industry in India

India is the world’s third-largest consumer of crude oil, with demand driven by industrialization and transportation. The industry's key aspects include:

Factor

Details

Consumption

India consumes ~5.3 million barrels of oil daily.

Imports

About 88% of crude oil is imported.

Production

Domestic oil production has declined by 5.2% YoY.

Reserves

Crude oil reserves stood at 447.57 million tonnes as of 2022.

The sector is heavily regulated, and investors must analyze government policies and global crude oil price fluctuations before investing. Those looking for leverage-based positions can explore MTF (Margin Trading Facility) options for oil and gas stocks.

What are the Features of Oil & Gas Stocks in India?

Oil and gas stocks have distinct features that impact investment decisions:

  • Government Involvement: Leading firms like ONGC and IOC are state-owned, affecting pricing and operational strategies.

  • Integration Across Value Chain: Companies like Reliance Industries operate in both upstream and downstream segments.

  • Impact of Global Prices: Crude oil price volatility directly influences stock performance.

  • Regulatory Influence: Policies on fuel subsidies, exploration licenses, and taxation significantly affect revenues.

  • Investment Opportunities: Investors can participate in upcoming IPO launches in the energy sector for potential early-stage investments.

  • Trading Costs Consideration: Those engaged in frequent buying and selling can use a brokerage calculator to assess trading costs effectively.

Understanding these features helps investors make informed decisions, whether they prefer long-term holdings or short-term intraday trading strategies in this sector.

Top Oil & Gas Stocks in India as per Market Capitalisation

The following table provides a market capitalization-based ranking of India's leading oil and gas companies.

Company Name

Last Price (₹)

% Change

52-Week High (₹)

52-Week Low (₹)

Market Cap (₹ Cr.)

Reliance

1,256.60

0.74

1,608.95

1,156.00

1,700,477.98

ONGC

224.65

-0.88

344.60

215.20

282,615.97

IOC

125.30

0.36

185.95

110.75

176,939.12

BPCL

266.05

0.55

376.00

234.15

115,425.94

GAIL

159.15

1.43

246.35

150.60

104,642.71

Source: MoneyControl as of Mar 13, 2025

Overview of Oil & Gas Stocks in India by Market Cap

The table below provides a brief summary of key oil and gas stocks in India, categorized by their primary operations and market capitalization.

Company Name

Sector

Market Cap (₹ Cr.)

Reliance

Oil Exploration and Production

1,700,477.98

ONGC

Oil Exploration and Production

282,615.97

IOC

Refineries

176,939.12

BPCL

Refineries

115,425.94

GAIL

Refineries

104,642.71

Source: MoneyControl

Reliance Industries Ltd.

Reliance Industries Ltd. (RIL) is India's largest private-sector company with diverse operations in energy, petrochemicals, textiles, natural resources, retail, and telecommunications. The company has a strong presence in refining and marketing, along with investments in green energy and technology sectors.

Key Financials and Stock Data

The table below presents key financial and stock-related data for Reliance Industries Ltd. (RIL).

Metric

Value

Market Cap (Rs. Cr.)

1,701,086

Current Share Price

1,257.05

52-Week High

1,608.80

52-Week Low

1,156.00

P/E Ratio (TTM)

24.59

Book Value per Share

605.55

Dividend Yield (%)

0.80

Debt-to-Equity Ratio

0.41

Net Profit (Rs. Cr.)

78,633

Revenue (Rs. Cr.)

901,064

Source: MoneyControl

Key Highlights

  • Reliance Industries operates in oil refining, petrochemicals, digital services (Jio), and retail.

  • It has a strong financial position with steady revenue and profit growth.

  • Expansion into green energy and AI-driven technology is a focus for future growth.

  • The stock has underperformed in the last year, with a -14.29% return.

Oil and Natural Gas Corporation Ltd. (ONGC)

ONGC stands as India's premier government-owned entity in the realm of oil and gas discovery and extraction. It engages in upstream exploration, deep-sea drilling operations, and the stewardship of energy resources.

Key Financials and Stock Data

The table below presents key financial and stock-related data for ONGC.

Metric

Value

Market Cap (Rs. Cr.)

282,301

Current Share Price

224.40

52-Week High

345.00

52-Week Low

215.48

P/E Ratio (TTM)

7.25

Book Value per Share

280.02

Dividend Yield (%)

5.46

Debt-to-Equity Ratio

0.36

Net Profit (Rs. Cr.)

54,704

Revenue (Rs. Cr.)

591,447

Source: MoneyControl

Key Highlights

  • ONGC plays a critical role in India's energy security, with large oil and gas reserves.

  • The company has stable dividend yields, making it attractive to investors.

  • Stock performance has declined by -18.10% over the past year.

  • Strategic investments in renewable energy are being considered.

Indian Oil Corporation Ltd. (IOC)

IOC is India's leading public-sector refining and marketing company, operating one of the largest fuel retailing networks in the country.

Key Financials and Stock Data

The table below presents key financial and stock-related data for IOC.

Metric

Value

Market Cap (Rs. Cr.)

176,925

Current Share Price

125.29

52-Week High

185.97

52-Week Low

110.72

P/E Ratio (TTM)

16.66

Book Value per Share

128.68

Dividend Yield (%)

9.58

Debt-to-Equity Ratio

0.67

Net Profit (Rs. Cr.)

41,615

Revenue (Rs. Cr.)

776,351

Source: MoneyControl

Key Highlights

  • IOC is the largest government-owned refining and petroleum marketing company.

  • The company has a high dividend yield of 9.58%.

  • Stock has declined -28.10% in the past year.

  • Strong presence in both retail fuel stations and industrial supply.

Bharat Petroleum Corporation Ltd. (BPCL)

BPCL is a state-owned oil refining and fuel distribution company with a focus on petrochemicals and alternative energy.

Key Financials and Stock Data

The table below presents key financial and stock-related data for BPCL.

Metric

Value

Market Cap (Rs. Cr.)

115,543

Current Share Price

266.32

52-Week High

376.00

52-Week Low

234.01

P/E Ratio (TTM)

8.41

Book Value per Share

177.88

Dividend Yield (%)

11.83

Debt-to-Equity Ratio

0.60

Net Profit (Rs. Cr.)

25,793

Revenue (Rs. Cr.)

448,083

Source: MoneyControl

Key Highlights

  • BPCL has strong refining and distribution capabilities.

  • Dividend yield is high at 11.83%.

  • Stock performance is down -14.84% in the last year.

  • The company is diversifying into green fuel and renewables.

GAIL (India) Ltd.

GAIL is India's largest natural gas transmission and distribution company, playing a crucial role in the country's energy infrastructure.

Key Financials and Stock Data

The table below presents key financial and stock-related data for GAIL.

Metric

Value

Market Cap (Rs. Cr.)

104,675

Current Share Price

159.20

52-Week High

246.30

52-Week Low

150.52

P/E Ratio (TTM)

8.42

Book Value per Share

127.46

Dividend Yield (%)

3.46

Debt-to-Equity Ratio

0.24

Net Profit (Rs. Cr.)

8,220

Revenue (Rs. Cr.)

133,228

Source: MoneyControl

Key Highlights

  • GAIL dominates India's natural gas pipeline network.

  • Stock has declined -11.51% in the last year.

  • Future growth includes expanding city gas distribution networks.

  • Strong financials with low debt-to-equity ratio.

What Factors Should One Consider Before Investing in Oil & Gas Sector Stocks in India?

  • Regulatory Environment: Government policies and regulations significantly impact the profitability of oil and gas companies. It's crucial to analyze current policies and anticipate potential changes that could affect the industry.

  • Global Oil Prices: The performance of oil and gas stocks is closely tied to global oil price fluctuations. Monitoring these prices is essential for making informed investment decisions.

  • Company Financial Health: Assessing a company's financial stability, including its debt levels, revenue streams, and profit margins, is vital before investing.

  • Technological Advancements: Companies investing in new technologies for exploration and production may have a competitive edge.

  • Environmental and Social Governance (ESG) Factors: Evaluating a company's commitment to environmental sustainability and social responsibility can impact long-term investment returns.

What Factors Influence the Performance of Oil & Gas Stocks?

  • Supply and Demand Dynamics: Global supply and demand for oil and gas directly affect stock prices.

  • Geopolitical Events: Political instability in oil-producing regions can lead to supply disruptions, influencing stock performance.

  • Currency Exchange Rates: Since oil is traded globally in U.S. dollars, fluctuations in exchange rates can impact profitability.

  • Technological Changes: Advancements in renewable energy technologies can affect the demand for traditional oil and gas.

  • Operational Efficiency: Companies with efficient operations and lower production costs are better positioned during price downturns.

How Do Oil & Gas Stocks Work?

Oil and gas stocks represent ownership in companies involved in the exploration, extraction, refining, and distribution of oil and gas products. Investors can earn returns through capital appreciation as stock prices rise and dividends distributed from company profits. The value of these stocks is influenced by factors such as commodity prices, operational efficiency, and broader economic conditions.

Tips for Investing in Oil & Gas Industry in India

  • Diversify Your Portfolio: Avoid concentrating investments in a single company or segment; diversify across upstream, midstream, and downstream operations. ​

  • Stay Informed: Keep abreast of industry news, government policies, and global economic indicators that can impact the sector. ​

  • Assess Dividend Yields: Many oil and gas companies offer attractive dividends; consider these for steady income.

  • Long-Term Perspective: Given the cyclical nature of the industry, a long-term investment horizon can help weather short-term volatility. ​

  • Consult Financial Advisors: Seek advice from professionals to align investments with your financial goals and risk tolerance. ​

How to Pick Oil & Gas Stocks

  • Evaluate Reserves and Production Levels: Companies with substantial and proven reserves and efficient production capabilities are preferable. ​

  • Analyze Financial Metrics: Review metrics such as Price-to-Earnings (P/E) ratio, debt-to-equity ratio, and return on equity (ROE). ​

  • Consider Market Position: Companies with strong market share and integrated operations may offer more stability. ​

  • Review Management Expertise: Experienced leadership can navigate market challenges effectively. ​

  • Assess Commitment to Sustainability: Firms investing in renewable energy and sustainable practices may have better long-term prospects. ​

By considering these factors and staying informed through reliable sources, investors can make well-informed decisions in the Indian oil and gas sector.​

Who Should Explore Oil & Gas Stocks?

Investing in oil and gas stocks may be suitable for individuals who:​

  • Seek Portfolio Diversification: Including energy sector stocks can diversify investment portfolios, potentially balancing risks and returns across different industries.​

  • Have a High-Risk Tolerance: The oil and gas sector is subject to significant volatility due to fluctuating commodity prices and geopolitical events. Investors comfortable with such risks might find opportunities here.​

  • Possess Industry Knowledge: Individuals with a strong understanding of the energy sector's dynamics, including supply-demand factors and technological advancements, may be better positioned to assess investment opportunities.​

  • Seek Dividend Income: Many established oil and gas companies offer regular dividends, appealing to investors looking for income-generating investments.​

Why Invest in Oil & Gas Stocks?

Investing in oil and gas stocks offers several potential benefits:​

  • Profit from Global Energy Demand: As global energy consumption continues to rise, companies in the oil and gas sector may experience growth, leading to potential capital appreciation.​

  • Dividend Opportunities: Established oil and gas companies often provide attractive dividend yields, offering a steady income stream to investors.​

  • Inflation Hedge: Energy stocks can serve as a hedge against inflation, as energy prices often rise with increasing inflation, potentially preserving the investment's real value.​

Should You Invest in Oil & Gas Stocks?

Deciding to invest in oil and gas stocks depends on individual financial goals, risk tolerance, and investment horizons:​

  • Alignment with Financial Goals: If your investment objectives include income generation and exposure to the energy sector, oil and gas stocks might be appropriate.​

  • Risk Assessment: Consider your comfort level with the inherent risks in the oil and gas industry, such as price volatility and regulatory changes.​

  • Diversification Strategy: Evaluate how oil and gas investments fit within your broader portfolio diversification plan to mitigate sector-specific risks.​

What are the Risks of Investing in Oil & Gas Stocks in India?

Investing in India's oil and gas sector entails specific risks:​

  • Regulatory and Environmental Risks: Incidents like the 2020 Assam gas and oil leak highlight the environmental and regulatory challenges companies may face, leading to operational disruptions and financial liabilities.

  • Market Volatility: The sector is susceptible to global oil price fluctuations, which can impact company revenues and stock prices.​

  • Operational Challenges: Technical issues, accidents, or natural disasters can disrupt production and affect profitability.​

  • Geopolitical Factors: Political instability in oil-producing regions can influence supply chains and market stability.​

  • Corporate Governance Issues: Allegations of unethical practices, such as bribery or corruption, can lead to legal challenges and negatively impact stock performance. ​

Investors should conduct thorough due diligence, stay informed about industry developments, and consider consulting financial advisors to navigate the complexities of investing in the oil and gas sector.

What are the Advantages of Investing in Oil & Gas Stocks in India?

  • Growing Energy Demand: India's rapid industrialization and urbanization have led to increased energy consumption, positioning the oil and gas sector for potential growth. Investors can take advantage of this trend by using a trading account and demat account to invest in leading companies in the sector.

  • Government Initiatives: Recent legislative reforms aim to boost domestic oil and gas exploration, offering a more stable policy environment and attracting investments. Some upcoming IPO launches in the energy sector also provide early investment opportunities for traders.

  • Diversification Benefits: Including oil and gas stocks in an investment portfolio can provide diversification, potentially balancing risks and returns across different sectors. Investors trading in this sector can use a brokerage calculator to evaluate transaction costs.

Who Can Invest in Oil & Gas Stocks?

  • Individual Investors: Retail investors can purchase shares of oil and gas companies listed on Indian stock exchanges using a demat account. Intraday trading is also an option for those looking to profit from daily price fluctuations in energy stocks.

  • Institutional Investors: Entities such as mutual funds, pension funds, and insurance companies often invest in the oil and gas sector to diversify their portfolios. Some institutions also utilize MTF (Margin Trading Facility) to leverage their positions.

  • Foreign Investors: Through platforms like the India International Exchange (India INX), foreign investors have access to Indian oil and gas stocks, including upcoming IPO opportunities.

Is Investing in Oil & Gas Stocks Risky?

Yes, investing in oil and gas stocks carries inherent risks:

  • Commodity Price Volatility: Fluctuations in global oil prices can significantly impact the profitability of companies in this sector. Short-term investors may opt for intraday trading to capitalize on price movements.

  • Regulatory Changes: Shifts in government policies, such as changes in taxation or environmental regulations, can affect operations and profitability.

  • Environmental Concerns: The oil and gas industry faces scrutiny over environmental impacts, which can lead to increased compliance costs and operational restrictions. Investors should use a brokerage calculator to assess overall investment costs before entering this sector.

How to Invest in Oil & Gas Stocks

1.     Open a Brokerage Account: Investors must first open a trading account and demat account with a registered brokerage firm to trade oil and gas stocks.

2.     Research Companies: Analyzing financial statements, market positions, and future prospects of oil and gas companies is essential. Checking upcoming IPO opportunities in the energy sector can also be beneficial.

3.     Place Orders: Buying shares through your trading account requires specifying the number of shares and the price at which you're willing to buy. Investors engaged in intraday trading must also set stop-loss levels to mitigate risks.

4.     Monitor Investments: Regularly reviewing investments, staying informed about market conditions, and using a brokerage calculator to analyze trading costs are crucial for optimizing returns.

What is the Impact of Government Policies on Oil & Gas Stocks?

  • Exploration and Production Incentives: Policies promoting exploration can lead to increased domestic production, benefiting companies involved in these activities. Investors can explore MTF options to maximize exposure to this growth.

  • Subsidy Reforms: Changes in fuel subsidies can affect demand and pricing, influencing company revenues. Investors can use a trading account to capitalize on price shifts in subsidy-driven stocks.

  • Environmental Regulations: Stricter environmental laws may increase operational costs but can also drive innovation towards cleaner technologies. Before investing, using a brokerage calculator to evaluate cost implications is advisable.

Government policies have a significant impact on oil and gas stocks, and investors must stay updated with regulatory changes to make informed investment decisions.

How Oil & Gas Stocks Perform in Economic Downturns

During economic downturns, oil and gas stocks often face significant challenges due to reduced industrial activity and consumer demand, leading to lower energy consumption. This decreased demand typically results in declining oil and gas prices, which can adversely affect the revenues and profitability of companies in this sector. Additionally, investor sentiment tends to shift towards more stable and less cyclical industries during such periods, further pressuring stock prices.​

However, the extent of the impact varies based on factors such as a company's operational efficiency, diversification, and financial health. Companies with strong balance sheets and diversified operations may better withstand economic downturns. For instance, firms engaged in both upstream (exploration and production) and downstream (refining and marketing) activities might mitigate risks associated with fluctuating commodity prices.​

Oil & Gas Sector Highlights from Union Budget 2025-2026

The Union Budget 2025-2026 introduced several measures aimed at bolstering the oil and gas sector:​

  • Strategic Petroleum Reserves (SPR): The government allocated ₹55.97 billion (approximately $646.78 million) to support oil purchases for India's SPR. This initiative aims to enhance energy security by expanding the country's emergency oil reserves.

  • Tariff Rationalization: The budget proposed the removal of seven tariff rates, simplifying the tax structure and potentially reducing the cost of operations for oil and gas companies. This move is expected to encourage investment and improve the ease of doing business in the sector.

  • Energy Security and Domestic Manufacturing: Emphasis was placed on long-term energy security, with plans to expand nuclear capacity and promote clean energy initiatives. These measures aim to diversify the energy mix and reduce reliance on fossil fuels over time.

Future Trends and Opportunities of Investing in Oil & Gas Stocks

Several trends are shaping the future of oil and gas investments in India:​

  • Technological Advancements: The adoption of advanced technologies in exploration and production is expected to enhance efficiency and reduce operational costs, potentially leading to higher profitability for companies.​

  • Diversification into Renewable Energy: Many traditional oil and gas companies are investing in renewable energy sources, aligning with global sustainability goals and opening new revenue streams.​

  • Government Initiatives: Policies aimed at reducing import dependence and promoting domestic production, such as the recent legislation to boost oil and gas exploration, are likely to create new investment opportunities.

What is the GDP Contribution of Oil & Gas Sector Stocks?

The oil and gas sector plays a significant role in India's economy:​

  • Gross Value Addition (GVA): The GVA of the manufacture of coke and refined petroleum products increased from ₹1.56 lakh crore in 2012-13 to ₹2.12 lakh crore in 2022-23, contributing to the overall GDP growth during this period.

  • Profit-to-GDP Ratio: As of 2018, the ratio of profits from the oil and gas sector to India's GDP was approximately 0.66%, indicating a notable contribution to the national economy.

Understanding these dynamics is crucial for investors considering exposure to the oil and gas sector, as they reflect the industry's economic significance and potential for future growth.

What is the Future of Oil & Gas Stocks?

The future of oil and gas stocks in India is shaped by several key factors:​

  • Government Initiatives: The Indian government's recent legislation to boost oil and gas exploration aims to enhance domestic production and reduce reliance on imports. This policy shift is expected to create a more favorable environment for investment in the sector.

  • Technological Advancements: Companies like Cairn India are exploring deepwater opportunities and shale resources to increase production. Such initiatives indicate a potential for growth in the sector, provided these projects achieve their projected outcomes.

  • Global Energy Transition: While there is a global shift towards renewable energy, fossil fuels continue to play a significant role in meeting India's growing energy demands. The balance between traditional energy sources and renewable alternatives will influence the long-term prospects of oil and gas stocks.​

Why is It Worth Buying Oil & Gas Stocks Now?

Several factors make investing in oil and gas stocks potentially attractive at this time:​

  • Strategic Investments: Companies like ONGC are focusing their investments in regions such as the Middle East, Africa, and Latin America, aiming to secure resources and enhance profitability. Such strategies may lead to improved financial performance and shareholder value.

  • Government Support: The Indian government's commitment to expanding domestic oil and gas exploration and production, as evidenced by recent legislative changes, provides a supportive backdrop for the sector's growth. ​

  • Economic Growth: India's expanding economy continues to drive energy demand, ensuring a sustained need for oil and gas. This persistent demand can provide stability and growth opportunities for companies within the sector.​

Conclusion

Investing in India's oil and gas sector offers potential benefits, driven by supportive government policies, strategic corporate initiatives, and ongoing energy demand. However, investors should remain mindful of the challenges posed by the global energy transition towards renewables and the inherent volatility in commodity markets. A balanced and informed approach, considering both current opportunities and future uncertainties, is essential for making sound investment decisions in this sector.

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Other Popular Stocks in India

  • Cairn India: As India's largest privately-owned oil and gas exploration and production company, Cairn India is actively seeking joint venture partners to boost oil production from 100,000 barrels per day (bpd) to 500,000 bpd within the next six to seven years. The company is focusing on deepwater opportunities and plans to drill several exploration wells in the coming years.

  • Oil India Limited (OIL): A central public sector undertaking, OIL is engaged in the exploration, development, and production of crude oil and natural gas. The company is expanding its Numaligarh refinery in Assam from the current 60,000 bpd to 180,000 bpd by March 2027, with a new crude oil pipeline to Paradip Port in Odisha expected to be commissioned by December 2025.

  • Nayara Energy: Formerly known as Essar Oil Limited, Nayara Energy operates the Vadinar refinery in Gujarat, one of India's largest with a capacity of 20 million metric tonnes per annum (MMTPA). The company manages an extensive network of retail fuel outlets across the country, serving a significant portion of India's fuel requirements.

  • HPCL-Mittal Energy Limited (HMEL): This joint venture between Hindustan Petroleum Corporation Limited and Mittal Energy Investments operates the Guru Gobind Singh Refinery in Bathinda, Punjab, with a capacity of 11.3 MMTPA. HMEL has expanded into petrochemicals, producing polypropylene and polyethylene, and has been recognized for its corporate social responsibility initiatives.

  • Gujarat State Petroleum Corporation (GSPC): A state government-owned entity, GSPC is involved in oil and gas exploration, production, and distribution. The company has significant operations in the Krishna Godavari Basin and has expanded its exploration activities internationally, including in Egypt, Yemen, Indonesia, and Australia.

  • Essar Group: An Indian multinational conglomerate, Essar Group has interests in various sectors, including energy. The group operates in oil refining, oil and gas exploration and production, and power generation, with a focus on sustainable and green energy initiatives. ​

These companies, alongside the major players, collectively strengthen India's oil and gas sector, contributing to energy security and economic growth.​

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Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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