4 Oil Drill and Allied Stocks with Strong Growth Plans in India (2026)

Oil drill stocks in India cover a spectrum from India’s two government-owned E&P giants (ONGC and Oil India) to specialized oilfield services companies (Deep Industries, Jindal Drilling). These four companies are all involved in the upstream exploration and production segment of the oil and gas value chain, either as direct producers or as service providers to the producer community. As of 19 August 2026, all four oil drill stocks are operating under a regulatory environment that is actively encouraging increased domestic production through revenue-sharing contracts, open-acreage licensing, and processing concessions for explorers.

India’s energy security is one of the government’s highest strategic priorities. Reducing oil import dependence by even 5 percentage points would save Rs 30,000+ crore in annual foreign exchange and improve the current account balance meaningfully. This strategic imperative directly backs the growth plans of all four oil drill stocks, providing them with regulatory support, open-acreage licensing, and pricing structures designed to make exploration commercially viable.

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What Are Oil Drill Stocks?

Oil drill stocks are shares of companies involved in the exploration, drilling, production, and associated services for crude oil and natural gas. The category includes integrated E&P companies (ONGC, Oil India) that hold exploration licences and produce oil and gas directly, and oilfield services companies (Deep Industries, Jindal Drilling) that provide drilling rigs, compression equipment, and contract services to E&P companies.

Key financial metrics for oil drill stocks include the reserve replacement ratio (new reserves added relative to production — a ratio below 1 means the company is depleting its reserves), production cost per barrel (OPEX per BOE), and the reserve life index (years of production at current rates). For oilfield services oil drill stocks, rig utilisation rates and day rates are the most relevant metrics.

Why Do These Four Oil Drill Stocks Have Strong Growth Plans?

India’s domestic crude oil production has stagnated at approximately 29-30 MMTPA (million metric tonnes per annum) for the past decade despite rising demand. This gap between production and demand is filled by expensive imports, creating a strong policy imperative to increase domestic oil drill stocks’ production. The government has responded by opening 99 new exploration blocks under Open Acreage Licensing Policy, offering revenue-sharing contracts with flexible terms, and reducing government take from production to make marginal fields commercially viable.

Natural gas production is the faster-growing frontier for Indian oil drill stocks. India’s gas consumption is growing at 8-10% annually driven by fertiliser plants, CNG vehicles, and industrial fuel substitution. ONGC’s KG Basin deepwater gas fields and Oil India’s Numaligarh refinery integration are both positioned to capture incremental domestic gas demand growth that the current supply cannot meet.

4 Oil Drill Stocks with Strong Growth Plans

Company	CMP (Rs)	Market Cap (Rs Cr)	PE Ratio	ROE (%)
Oil and Natural Gas Corporation Ltd. (ONGC)	238.00	3,01,109	6.72	11.14%
Oil India Ltd. (OIL)	474.85	77,955	8.18	11.41%
Deep Industries Ltd. (DEEPINDS)	667.35	4,599	20.48	19.42%
Jindal Drilling & Industries Ltd. (JINDRILL)	635.10	1,887	9.84	11.57%

Data as of 19 August 2026, NSE. Prices are indicative and change in real time.

1. Oil and Natural Gas Corporation Limited (ONGC)

Founded in 1956 and headquartered in Dehradun, ONGC is India’s largest crude oil and natural gas producer and a Maharatna PSU, contributing approximately 70% of India’s domestic crude oil output. The company operates onshore and offshore blocks across India (including the giant Mumbai High offshore field) and has international operations through its subsidiary ONGC Videsh in 15 countries including Mozambique, Russia, Brazil, and Vietnam. Among oil drill stocks, ONGC is the most politically significant: its production levels directly affect India’s energy security and its dividend payouts directly fund government revenues.

ONGC’s growth plan targets production of 32 MMTPA of oil by FY28 and 35 bcm of gas through offshore deepwater exploration (KG Basin), redevelopment of ageing onshore fields (Mumbai High IOR/EOR programmes), and new international production from the ONGC Videsh portfolio. The company is also investing in renewables through a 10 GW solar and wind target by FY30, transitioning toward a diversified energy company alongside its core oil drill stock identity. PE of 6.72 (below the industry average of 7.66) makes ONGC one of the cheapest large-cap oil drill stocks globally relative to its asset base. ROE of 11.14% is stable and dividend yield of 3.03% provides steady income. D/E of 0.47 is modest for an E&P company of this scale.

2. Oil India Limited (OIL)

Founded in 1959 and headquartered in Duliajan (Assam), Oil India is India’s second-largest state-owned oil and gas E&P company, with onshore operations primarily in Assam, Arunachal Pradesh, and Rajasthan. The company also holds international assets in Libya, Gabon, Mozambique, and Yemen. A unique aspect of Oil India among oil drill stocks is its integration with petrochemical and gas pipeline infrastructure through its stake in Numaligarh Refinery (NRL) and its natural gas pipeline network in Northeast India, giving it downstream exposure that pure E&P oil drill stocks typically lack.

Oil India’s growth plan targets production of 4.5 MMTPA of crude oil by FY28 (from 3.5 MMTPA in FY26) through new well drilling in its Assam blocks and deeper exploration in its Rajasthan acreage. NRL’s Rs 28,000 crore expansion from 3 MMTPA to 9 MMTPA capacity (including a petrochemical complex) is the most transformative near-term catalyst for this oil drill stock, as it will triple the downstream crude processing capacity and add significant petrochemical revenue. PE of 8.18 (above the industry average of 7.66) and ROE 11.41% are in line with peers. Dividend yield of 2.40% provides steady income. D/E of 0.65 includes project financing for the NRL expansion.

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3. Deep Industries Limited (DEEPINDS)

Founded in 1991 and headquartered in Ahmedabad, Deep Industries is a mid-size oilfield services company specialising in natural gas compression, dehydration, and processing services for ONGC, Oil India, and private E&P operators in India. The company provides gas compression rental services (workover rigs, compressors) to boost production from ageing wells and processes associated gas that would otherwise be flared. Among oil drill stocks, Deep Industries is the most oilfield-services-focused, with a business model built on long-term service contracts with India’s major E&P operators.

Deep Industries’ growth plan targets doubling its fleet of gas compression units and well intervention equipment by FY28, capitalising on ONGC’s and OIL’s accelerated field development programmes. The company is also adding offshore well services capabilities and water management solutions for oilfield clients. ROE of 19.42% is the highest among these four oil drill stocks, reflecting the capital-efficient rental services model where equipment investments generate long-term contracted cash flows. PE of 20.48 (above the industry average of 7.66) reflects the superior quality and growth profile of the services business relative to E&P producers. D/E of 0.10 is minimal, giving Deep Industries significant capacity for fleet expansion financing without balance sheet stress.

4. Jindal Drilling and Industries Limited (JINDRILL)

Founded in 1977 and headquartered in Mumbai, Jindal Drilling and Industries is one of India’s oldest offshore drilling contractors, operating jack-up drilling rigs that it deploys under contracts with ONGC, international E&P operators, and Indian government agencies. The company also has a subsidiary involved in real estate, though the core business remains offshore drilling services. Among the smaller oil drill stocks, Jindal Drilling is the most exposed to the offshore drilling rig market, which is experiencing a global tightening of rig supply and rising day rates as offshore oil exploration investment globally recovers from the 2020-22 downturn.

Jindal Drilling’s growth plan involves deploying its existing jack-up rig fleet at improved day rates (reflective of a global jack-up rig supply shortage) and evaluating the acquisition or charter of additional rigs to expand its deployable fleet. The company benefits directly from ONGC’s offshore field development, which uses contract drilling rigs like Jindal’s rather than building new owned rigs. PE of 9.84 (above the industry average of 7.66, reflecting the services premium over E&P producers) and ROE of 11.57% are modest but improving as rig day rates rise. D/E of 0.05 is negligible, positioning Jindal Drilling for potential debt-funded fleet expansion from a very clean base.

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What Are the Key Growth Drivers for Oil Drill Stocks in India?

India’s energy security imperative reducing import dependence: India imports 85%+ of crude oil at a cost of $100+ billion annually. Every additional barrel of domestic production saves foreign exchange and reduces import dependence, creating a strategic policy push that directly supports oil drill stocks’ production growth plans with regulatory and fiscal support.

Open Acreage Licensing Policy opening new exploration blocks: The HELP (Hydrocarbon Exploration and Licensing Policy) framework allows companies to select exploration blocks from any open area in India without waiting for government-announced bid rounds. This flexibility accelerates exploration and increases the drilling work available for oilfield services oil drill stocks like Deep Industries and Jindal Drilling.

Natural gas demand growing at 8-10% annually: India’s gas consumption (for CNG, city gas distribution, fertilisers, and power) is growing faster than domestic production, requiring either enhanced production from existing fields (compressor services from Deep Industries) or new field development (drilling services from Jindal Drilling). This growing demand-supply gap supports sustained services demand for oil drill stocks.

Ageing oilfields requiring enhanced recovery techniques: Major Indian oilfields like Mumbai High are decades old and require enhanced oil recovery (EOR) techniques including water injection, gas lift compression, and well workover services to maintain production levels. This creates sustained demand for oil drill stocks’ services regardless of new exploration success rates.

Global offshore rig scarcity driving day rate increases: After years of under-investment in new drilling rigs globally (due to the 2020 oil price collapse), the global jack-up rig fleet is at historically low availability levels. Rising rig day rates directly improve revenue and margins for offshore drilling oil drill stocks like Jindal Drilling.

What Risks Should Investors Consider Before Buying Oil Drill Stocks?

Crude oil price volatility affecting E&P economics: ONGC’s and Oil India’s profitability is directly linked to global crude oil prices. A sustained decline in Brent crude to below $65-70/barrel can compress their EBITDA per barrel significantly and reduce the commercial viability of some marginal field developments. Lower crude prices also reduce the capex budgets of E&P companies, which indirectly affects oilfield services oil drill stocks.

Regulatory and price administration risk for government E&P companies: ONGC and Oil India are subject to government directives on pricing, dividend payouts, and social obligations. The government has historically required these oil drill stocks to absorb subsidy burdens (under-recoveries), which can significantly affect realised oil prices and profitability.

Exploration risk: wells drilled may be dry or sub-commercial: Not every exploration well discovers commercially viable quantities of oil or gas. High exploration failure rates can result in write-offs that reduce reported earnings for E&P oil drill stocks without corresponding physical production losses, but these write-offs reduce book value and investment returns over time.

Contract concentration for oilfield services companies: Deep Industries and Jindal Drilling are both significantly dependent on contracts from ONGC, which is India’s largest E&P operator. Any reduction in ONGC’s drilling and services budget directly affects revenue for these smaller oil drill stocks.

How to Choose the Right Oil Drill Stock?

Decide between E&P producers and oilfield services for risk profile: ONGC and Oil India are commodity price-linked, dividend-paying PSU oil drill stocks; Deep Industries and Jindal Drilling are services businesses with more consistent contract revenue but smaller scale. If you want commodity exposure with income, choose E&P oil drill stocks; if you want growth with service quality, choose the smaller services companies.

Check reserve replacement ratio for E&P oil drill stocks: A reserve replacement ratio above 1 means the company is finding more oil than it is producing, sustaining its reserve base. ONGC and Oil India both target reserve replacement ratios above 1 through their exploration programmes. Reserve depletion without replacement is the long-term risk for E&P oil drill stocks.

Assess day rate trends for offshore drilling services companies: Rising rig day rates are the primary earnings driver for Jindal Drilling. Track global jack-up rig market utilisation and day rate indices (published by Rigzone and other oilfield data providers) to anticipate revenue growth for this oil drill stock.

Monitor the government’s subsidy-sharing policy for PSU oil drill stocks: The government periodically requires PSU oil companies to subsidise fuel prices, which directly reduces their realised oil price. Changes in the subsidy-sharing policy are the most politically sensitive risk factor for ONGC and Oil India as PSU oil drill stocks.

How to Invest in Oil Drill Stocks in India?

Step 1: Track Brent crude oil price as the primary earnings driver. Brent crude oil prices (freely available on financial data platforms) are the most reliable leading indicator of ONGC’s and Oil India’s near-term earnings. A sustained Brent above $80/barrel is positive for E&P oil drill stocks’ earnings; below $65/barrel raises earnings risk.

Step 2: Monitor quarterly production volumes for E&P oil drill stocks. Monthly and quarterly production data from the Ministry of Petroleum and Natural Gas shows each company’s production trend. Rising production against stable or improving crude prices is the most bullish combination for E&P oil drill stocks.

Step 3: Track contract award announcements for oilfield services oil drill stocks. New contract awards from ONGC, Oil India, or international operators are the most important revenue milestone for Deep Industries and Jindal Drilling. Monitor BSE/NSE corporate announcement filings for contract award disclosures from these oil drill stocks.

Step 4: Maintain appropriate position limits given commodity price uncertainty. Oil price can move 30-40% in a single year based on geopolitical events, OPEC decisions, and demand shocks. Position oil drill stocks as a part of a diversified portfolio rather than a concentrated bet, regardless of conviction level.

Conclusion

ONGC, Oil India, Deep Industries, and Jindal Drilling are four oil drill stocks with distinct risk-return profiles from large-cap PSU producers to small-cap oilfield services specialists. ONGC provides dividend income with the largest domestic E&P franchise; Oil India adds NRL downstream integration; Deep Industries offers the best services quality growth at superior ROE; Jindal Drilling provides the most direct offshore rig market exposure. All four oil drill stocks benefit from India’s energy security imperative, but their earnings are sensitive to crude oil price cycles and government policy decisions that investors must monitor closely. Consult a SEBI-registered investment advisor before investing in oil drill stocks.

Frequently Asked Questions

Which oil drill stocks are best to buy in India?

Ans. ONGC is the most stable and highest-income PSU oil drill stock with a 3.03% dividend yield and the largest domestic E&P franchise. Oil India has additional growth from the NRL refinery expansion. Deep Industries offers the best services-quality growth at 19.42% ROE. Jindal Drilling is the most leveraged to rising offshore rig rates. Please consult a SEBI-registered advisor for personalised investment advice.

Why does India import so much crude oil despite having ONGC?

Ans. India’s domestic crude oil production (approximately 29-30 MMTPA) covers only 15% of the country’s oil consumption needs. ONGC’s ageing fields (especially Mumbai High, which has been producing since 1976) are in natural decline, and new discoveries have not been large enough to offset this decline. The gap between production and demand is filled by crude oil imports, primarily from the Middle East and Russia. This structural import dependence is why the government is aggressively encouraging domestic exploration and production among oil drill stocks.

What is Deep Industries’ business model?

Ans. Deep Industries provides natural gas compression, dehydration, and processing services to E&P companies on a contract basis. Rather than owning oil or gas reserves, the company owns high-value gas compression and processing equipment that it deploys at customers’ oil and gas fields under multi-year contracts. This asset-rental model generates predictable cash flows from the day the equipment is deployed, with minimal volume or price risk compared to E&P oil drill stocks. Revenue per unit of equipment is contracted, providing high earnings visibility.

What is the Hydrocarbon Exploration and Licensing Policy (HELP)?

Ans. HELP (Hydrocarbon Exploration and Licensing Policy), introduced in 2016, allows companies to explore for all types of hydrocarbons (conventional oil, gas, coalbed methane, gas hydrates) under a single licence. Companies can choose their own exploration blocks from any open area without waiting for government-designated bidding rounds (Open Acreage Licensing). Revenue sharing with the government is based on actual production rather than upfront fees, making exploration more commercially viable for oil drill stocks, especially for smaller or higher-risk acreage.

What is Oil India’s Numaligarh Refinery expansion?

Ans. Oil India holds a significant stake in Numaligarh Refinery Limited (NRL) in Assam, which is undergoing expansion from 3 MMTPA to 9 MMTPA of crude oil processing capacity and adding a petrochemical complex at a total investment of Rs 28,000 crore. This expansion transforms Oil India from a pure E&P oil drill stock into a partially integrated upstream-downstream energy company, adding substantial refining and petrochemical revenue to its production income once the NRL expansion is commissioned in FY27-28.

How do global rig day rates affect Jindal Drilling?

Ans. Rig day rates are the daily hire charges that E&P companies pay for drilling rig services. Jindal Drilling earns its primary revenue through day-rate contracts for its jack-up rigs. When global jack-up rig supply is tight (as it currently is due to years of low new rig construction), E&P companies must pay higher day rates to secure rig availability. Each $10,000/day increase in the rig day rate translates directly to approximately Rs 270 crore of incremental annual revenue for a single rig deployment. Rising day rates are therefore the most important earnings catalyst for this oil drill stock.