🏛️ Why PSU Energy Stocks Now?
The Indian government recently reduced royalty rates on offshore crude oil production from 9.09% to 8%, and onshore rates from 16.66% to 10%. This single policy move directly improves the profitability of upstream companies like ONGC and OIL India — without them doing anything differently.
🛢️ ONGC — Trade Setup
ONGC has formed a classic Cup & Handle pattern on the daily chart, with breakout confirmed above ₹293. Q4 FY26 net profit jumped 53% YoY to ₹10,819 crore.
📊 ONGC Key Fundamentals
| Parameter | Value | Remarks |
|---|---|---|
| CMP | ₹295 | Near breakout zone |
| P/E Ratio | 7.86 | Deeply undervalued |
| Q4 FY26 Profit | ₹10,819 Cr | +53% YoY 🔥 |
| Full Year FY26 | ₹41,424 Cr | +14.35% YoY |
| 52W High | ₹307.50 | Near resistance |
| Dividend Yield | 4.47% | Attractive income |
🛢️ OIL India — Trade Setup
OIL India has corrected 6% from its 52-week high of ₹524 to ₹491 — a healthy pullback. The ideal positional entry is on a further dip to the ₹470–480 zone.
🌍 Macro Tailwinds
| Factor | Impact |
|---|---|
| Crude Oil stable above $68 | ✅ Revenue visibility improves |
| Govt royalty cut | ✅ Direct margin improvement |
| PSU re-rating theme | ✅ FIIs buying domestic energy |
| Strong dividends | ✅ ONGC paid ₹16,669 Cr in FY26 |
| India oil demand +5–6% annually | ✅ Long-term growth secured |
🏆 Verdict — Which One to Pick?
ONGC is the clear winner for positional trades right now. Better valuation, stronger Q4 results, technical breakout in progress, and higher dividend yield. OIL India is a secondary play — enter only if it dips to ₹470.