3 Oil and Gas Stocks With a Strong Future Roadmap: ONGC, Indian Oil Corporation and GAIL India
- October 6, 2026
- Posted by: Neeraj Pandey
- Category: Best Stocks
ONGC Rs 224.90, P/E 6.33. Indian Oil Rs 130.50, P/E 5.17. GAIL Rs 167.50, P/E 11.16. Closing prices of 5 Oct 2026.
Quick Answer
Oil and gas stocks with the clearest long-term roadmaps today include ONGC in crude oil and natural gas production, Indian Oil Corporation in refining, fuel marketing and petrochemicals and GAIL India in natural gas transmission, marketing and petrochemicals. FY26 revenue growth was -0.6% at ONGC, 3.5% at Indian Oil and -0.0% at GAIL. P/E stands at 6.33 for ONGC (industry 7.18), 5.17 for Indian Oil (industry 15.21) and 11.16 for GAIL (industry 14.47). Demand cycles, input costs and valuation decide how much of that growth the market keeps paying for, so each company’s risks need equal attention.
Oil and gas stocks give investors exposure to India’s fuel and energy demand. Results depend on crude oil prices, refining margins and gas volumes, which is why capacity and cost control matter as much as headline growth.
This list covers three energy sector stocks: ONGC for crude oil and natural gas production, Indian Oil Corporation for refining, fuel marketing and petrochemicals and GAIL India for natural gas transmission, marketing and petrochemicals. Every figure comes from the latest reported financials and the 5 October 2026 market close. Companies without complete current figures were left out.
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What Are Oil and Gas Stocks?
Oil and gas stocks are shares of companies that produce crude oil and natural gas, refine fuel, run pipelines and sell petroleum products. Results depend on crude oil prices, gross refining margins, gas volumes and government pricing, so scale and integration separate the stronger names.
Oil and Gas Stocks at a Glance
The table compares size, valuation, return on equity and debt for the three oil and gas stocks as of the 5 October 2026 close.
| Company | CMP (Rs) | Market Cap (Rs Cr) | P/E | Industry P/E | ROE | Debt to Equity |
|---|---|---|---|---|---|---|
| ONGC | 224.90 | 2,83,685 | 6.33 | 7.18 | 11.14% | 0.47 |
| Indian Oil Corporation | 130.50 | 1,84,565 | 5.17 | 15.21 | 19.18% | 0.60 |
| GAIL India | 167.50 | 1,10,133 | 11.16 | 14.47 | 8.51% | 0.28 |
Among energy sector stocks, all three trade below their industry P/E multiples.
Why Do Oil and Gas Stocks Have a Strong Roadmap in India?
Oil and gas stocks have a strong roadmap in India because fuel demand keeps rising, refining and pipeline capacity is being added and gas use is growing in cities and industry. Three drivers stand out.
- Rising fuel demand: A growing economy lifts demand for petrol, diesel, gas and petrochemicals.
- Capacity additions: New refining, pipeline and production capacity supports higher volumes.
- Gas adoption: City gas and industrial use are widening the market for natural gas.
ONGC: Crude Oil Production and Deepwater Projects Anchor the Roadmap
ONGC’s roadmap rests on raising crude oil and gas output from new and mature fields, deepwater projects and a push into cleaner energy ventures.
Revenue grew from Rs 4,98,738.22 crore in FY22 to Rs 6,21,019.28 crore in FY26, a 24.5% rise, and FY26 revenue was 0.6% lower than FY25. FY26 net profit rose 29.9% to Rs 49,793.10 crore. Over four years, net profit rose from Rs 49,294.06 crore in FY22 to Rs 49,793.10 crore. In Q1 FY27, revenue grew 25.5% to Rs 2,07,775.93 crore, and net profit fell 43.3% to Rs 6,554.44 crore. Operating margin was 17.82% in FY26 and 9.44% in Q1 FY27 against 17.31% a year earlier.
Debt to equity is 0.47 and return on equity is 11.14%. FY26 operating cash flow was Rs 1,12,719.34 crore against capital expenditure of Rs 41,281.58 crore. ONGC paid a dividend of Rs 7.25 per share for FY26, a yield of 3.22%. At a P/E of 6.33 against an industry P/E of 7.18, the stock trades below its industry multiple.
What to watch: Q1 FY27 net profit was 43.3% lower than a year earlier, and earnings move with crude oil prices. Q1 FY27 net profit was 43.3% lower than a year earlier.
Indian Oil Corporation: Refining Capacity and Petrochemicals Drive the Pipeline
Indian Oil’s roadmap rests on adding refining and petrochemical capacity, its large fuel marketing network and a push into green hydrogen and cleaner fuels.
Revenue grew from Rs 5,92,417.96 crore in FY22 to Rs 7,88,578.42 crore in FY26, a 33.1% rise, and FY26 revenue was 3.5% higher than FY25. FY26 net profit rose 216.8% to Rs 43,677.32 crore. Over four years, net profit rose from Rs 25,726.60 crore in FY22 to Rs 43,677.32 crore. In Q1 FY27, revenue grew 27.0% to Rs 2,82,379.02 crore, and net loss was Rs 1,141.09 crore against a profit of Rs 6,808.12 crore. Operating margin was 9.35% in FY26 and 1.85% in Q1 FY27 against 6.76% a year earlier.
Debt to equity is 0.60 and return on equity is 19.18%. FY26 operating cash flow was Rs 76,142.08 crore against capital expenditure of Rs 4,002.38 crore. Indian Oil paid a dividend of Rs 8.25 per share for FY26, a yield of 6.16%. At a P/E of 5.17 against an industry P/E of 15.21, the stock trades below its industry multiple.
What to watch: Q1 FY27 was a loss-making quarter with operating margin at 1.85%, and earnings swing sharply with refining margins and crude oil prices. Q1 FY27 was a loss-making quarter.
GAIL India: Gas Pipelines and Petrochemicals Build the Next Leg
GAIL’s roadmap rests on expanding natural gas pipelines, rising gas use in cities and industry and its petrochemical and city gas distribution ventures.
Revenue grew from Rs 93,942.08 crore in FY22 to Rs 1,43,107.86 crore in FY26, a 52.3% rise, and FY26 revenue was 0.0% lower than FY25. FY26 net profit fell 39.2% to Rs 7,581.52 crore. Over four years, net profit moved from Rs 12,303.63 crore in FY22 to Rs 7,581.52 crore. In Q1 FY27, revenue grew 16.6% to Rs 41,482.65 crore, and net profit rose 96.1% to Rs 4,670.99 crore. Operating margin was 10.22% in FY26 and 18.31% in Q1 FY27 against 11.95% a year earlier.
Debt to equity is 0.28 and return on equity is 8.51%. FY26 operating cash flow was Rs 11,248.65 crore against capital expenditure of Rs 8,806.29 crore. GAIL paid a dividend of Rs 5.5 per share for FY26, a yield of 3.28%. At a P/E of 11.16 against an industry P/E of 14.47, the stock trades below its industry multiple.
What to watch: FY26 net profit was 39.2% lower than FY25 and capital expenditure of Rs 8,806.29 crore was a large share of operating cash flow. FY26 net profit was 39.2% lower than FY25.
Best Oil and Gas Stocks in India: ONGC vs Indian Oil vs GAIL on Key Financials
Among the best oil and gas stocks in India, ONGC leads on FY26 operating margin; Indian Oil leads on Q1 FY27 revenue growth and return on equity; GAIL leads on five-year revenue growth. The table puts the numbers side by side.
| Metric | ONGC | Indian Oil | GAIL |
|---|---|---|---|
| FY26 revenue (Rs Cr) | 6,21,019.28 | 7,88,578.42 | 1,43,107.86 |
| FY26 revenue growth | -0.6% | 3.5% | -0.0% |
| Revenue growth FY22 to FY26 | 24.5% | 33.1% | 52.3% |
| FY26 net profit (Rs Cr) | 49,793.10 | 43,677.32 | 7,581.52 |
| FY26 net profit growth | 29.9% | 216.8% | -39.2% |
| FY26 operating profit margin | 17.82% | 9.35% | 10.22% |
| Q1 FY27 revenue growth (YoY) | 25.5% | 27.0% | 16.6% |
| Q1 FY27 net profit growth (YoY) | -43.3% | Turned to loss | 96.1% |
| Return on equity | 11.14% | 19.18% | 8.51% |
| P/E ratio | 6.33 | 5.17 | 11.16 |
| Debt to equity | 0.47 | 0.60 | 0.28 |
| Dividend yield | 3.22% | 6.16% | 3.28% |
| FY26 operating cash flow (Rs Cr) | 1,12,719.34 | 76,142.08 | 11,248.65 |
Oil and gas earnings swing with crude oil and refining margins, so full-year numbers and quarterly trends together give a better view.
How to Evaluate Oil and Gas PSU Stocks to Buy Before You Invest
A short checklist keeps the research consistent when you screen oil and gas stocks and shortlist oil and gas PSU stocks to buy.
- Compare each stock’s P/E with its industry P/E, which differs by stock.
- Track operating margin across several quarters, because input costs can move faster than prices.
- Check whether revenue growth is turning into profit growth, not only sales.
- Read operating cash flow against capital expenditure to see how growth is funded.
- Watch debt to equity and interest cover before sizing a position.
- Spread exposure across companies and business lines instead of one demand cycle.
Check the Univest Screener for live data on these oil and gas stocks
Risks to Consider Before Investing in Oil and Gas Stocks
- Crude oil prices: Sharp swings in crude oil prices can change profit within a quarter.
- Government pricing: Fuel pricing decisions and levies can reduce marketing margins.
- Refining margins: Weak gross refining margins hurt refiners, as seen in Indian Oil’s Q1 FY27 loss.
- Energy transition: Long-term shifts to cleaner energy need heavy investment.
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Final Take: Which Stock Has the Strongest Roadmap?
These three oil and gas PSU stocks cover crude oil production, refining and fuel marketing, and natural gas pipelines. ONGC leads on FY26 operating margin; Indian Oil leads on Q1 FY27 revenue growth and return on equity; GAIL leads on five-year revenue growth.
Across energy sector stocks, each roadmap still has to turn growth into steady profit, so independent research and position sizing matter. Investors should consult a SEBI-registered advisor before acting on any of the oil and gas PSU stocks to buy discussed here.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
FAQs on Oil and Gas Stocks
Which are the best oil and gas stocks in India with a strong roadmap?
Ans. ONGC, Indian Oil Corporation and GAIL India stand out for their roadmaps in crude oil, refining and natural gas. FY26 revenue growth was -0.6% at ONGC, 3.5% at Indian Oil and -0.0% at GAIL, and return on equity ranges from 8.51% to 19.18%.
Is ONGC a good stock to buy now?
Ans. ONGC has a debt to equity ratio of 0.47, a return on equity of 11.14% and a P/E of 6.33 against an industry P/E of 7.18. Crude oil prices, refining margins and government pricing move results. This article is not investment advice, so consult a SEBI-registered advisor before deciding.
What is the P/E ratio of ONGC, Indian Oil and GAIL?
Ans. The P/E ratio is 6.33 for ONGC (industry 7.18), 5.17 for Indian Oil (industry 15.21) and 11.16 for GAIL (industry 14.47). All three trade below the industry multiple.
Which of these oil and gas stocks has the highest return on equity?
Ans. Indian Oil Corporation has the highest return on equity at 19.18%, followed by ONGC at 11.14% and GAIL India at 8.51%.
What are the risks of investing in oil and gas stocks?
Ans. The main risks are volatile crude oil prices, weak refining margins, government pricing decisions and the cost of energy transition. Indian Oil posted a net loss in Q1 FY27, ONGC’s Q1 profit fell 43.3% and GAIL’s FY26 profit fell 39.2%.
How did ONGC, Indian Oil and GAIL perform in Q1 FY27?
Ans. ONGC reported revenue of Rs 2,07,775.93 crore, up 25.5% year on year, and net profit fell 43.3% to Rs 6,554.44 crore. Indian Oil Corporation reported revenue of Rs 2,82,379.02 crore, up 27.0% year on year, and net loss was Rs 1,141.09 crore against a profit of Rs 6,808.12 crore. GAIL India reported revenue of Rs 41,482.65 crore, up 16.6% year on year, and net profit rose 96.1% to Rs 4,670.99 crore.
Do oil and gas stocks pay dividends?
Ans. Yes, all three companies pay dividends. The dividend yield is 3.22% for ONGC, 6.16% for Indian Oil and 3.28% for GAIL, based on dividends declared for FY26.
How can I invest in oil and gas stocks in India?
Ans. You can buy oil and gas stocks through a demat and trading account on NSE or BSE after checking each company’s financials, margins and valuation. The Univest Screener lets you compare fundamentals before placing an order. Investments in securities are subject to market risk, so consider your risk profile first.
