As per the International Energy Agency’s (IEA) India Energy Outlook 2021, India’s primary energy demand is expected to nearly double by 2040, reaching 1,123 million tonnes of oil equivalent, in line with the country’s projected GDP growth to US$ 8.6 trillion.
In the last 10 years, India’s refining capacity has grown from 215.1 MMTPA to 256.8 MMTPA, with plans to further increase it to 309.5 MMTPA by 2028. India is also poised to be a key contributor to petroleum consumption among non-OECD countries. Consumption of petroleum products has jumped from 158.4 MMT in 2013–14 to 234.3 MMT in 2023–24.
With this backdrop, here are some of the top oil and gas stocks to keep an eye on in May 2025.
| Name | Market Cap (in ₹ crore) | ↓5Y CAGR (%) | Net Profit Margin (%) |
| Chennai Petroleum Corporation Ltd | 9,315.15 | 59.55 | 0.36 |
| Oil India Ltd | 65,812.55 | 45.49 | 18.49 |
| Aegis Logistics Ltd | 27,800.96 | 37.41 | 7.87 |
| Mangalore Refinery and Petrochemicals Ltd | 23,369.15 | 33.75 | 0.06 |
| Great Eastern Shipping Company Ltd | 13,288.77 | 32.67 | 44.17 |
Note: The best oil and gas stocks in May 2025 here are as of May 06, 2025. The stocks are picked from the Nifty 500 universe and are sorted based on their 5-Year CAGR.
Read More, Best Gold Stocks in May 2025: Titan, Sky Gold, Goldiam, KDDL and Thangamayil.
CPCL, a subsidiary of Indian Oil Corporation Limited (IOCL), is based in Chennai, India.
In Q3 FY25, CPCL reported revenue of ₹15,683.25 crore, an increase from ₹14,424.86 crore in the previous quarter. It recorded a net profit of ₹10.46 crore in December 2024, marking a strong turnaround from the ₹629.49 crore net loss reported in September 2024.
Key metrics:
Oil India Limited is a government-owned company is into the exploration, development, and production of crude oil and natural gas. It also oversees crude oil transportation and LPG production.
For Q3 FY25, the company reported a revenue of ₹5,239.66 crore, a decrease from ₹5,518.95 crore in Q2 FY24. Its net profit stood at ₹1,221.80 crore, down from ₹1,834.07 crore in the previous quarter.
Key metrics:
Aegis Logistics, originally established as Aegis Chemical Industries Ltd. in 1956, focuses on offering logistics solutions for the oil, gas, chemicals, and petrochemical sectors.
In Q3 FY25, Aegis Logistics reported a revenue of ₹672.12 crore, an increase from ₹658.28 crore in Q2 FY24. The company’s net profit was ₹65.79 crore, down from ₹72.16 crore in the previous quarter.
Key metrics:
MRPL, a subsidiary of Oil and Natural Gas Corporation (ONGC), operates under the Ministry of Petroleum and Natural Gas, Government of India. Established in 1988, the refinery is located in Katipalla, north of Mangalore.
In Q3 FY25, MRPL reported a revenue of ₹25,600.78 crore, a decline from ₹28,785.92 crore in Q2 FY24. The company posted a net profit of ₹304.19 crore, marking a recovery from a loss of ₹682.32 crore in the previous quarter.
Key metrics:
The Great Eastern Shipping Company Limited is an Indian maritime company that focuses on transporting liquid, gas, and solid bulk cargo. As of 2023, it is the largest private-sector shipping company in India.
In Q3 FY25, the company reported a revenue of ₹878.50 crore, a decrease from ₹1,011.00 crore in Q2 FY24. However, its net profit rose to ₹678.63 crore, up from ₹564.97 crore in the previous quarter.
Key metrics:
| Name | ↓Market Cap (in ₹ crore) | 5Y CAGR (%) | Net Profit Margin (%) |
| Reliance Industries Ltd | 19,36,902.81 | 16.64 | 7.09 |
| Oil and Natural Gas Corporation Ltd | 3,00,920.28 | 24.98 | 8.12 |
| Indian Oil Corporation Ltd | 2,09,785.12 | 23.15 | 1.78 |
| Bharat Petroleum Corporation Ltd | 1,39,287.72 | 13.09 | 3 |
| Hindustan Petroleum Corp Ltd | 87,208.81 | 23.43 | 3.66 |
Note: The best oil and gas stocks in May 2025 here are as of May 06, 2025, and are picked from the Nifty 500 universe. The stocks are sorted based on their market cap.
| Name | Market Cap (in ₹ crore) | 5Y CAGR (%) | ↓Net Profit Margin (%) |
| Great Eastern Shipping Company Ltd | 13,288.77 | 32.67 | 44.17 |
| Oil India Ltd | 65,812.55 | 45.49 | 18.49 |
| Oil and Natural Gas Corporation Ltd | 3,00,920.28 | 24.98 | 8.12 |
| Aegis Logistics Ltd | 27,800.96 | 37.41 | 7.87 |
| Reliance Industries Ltd | 19,36,902.81 | 16.64 | 7.09 |
Note: The best oil and gas stocks in May 2025 here are as of May 06, 2025, and are picked from the Nifty 500 universe. The stocks are sorted based on their net profit margin.
India’s rapid economic growth is driving a significant rise in oil demand, especially in production and transportation. Crude oil consumption is expected to grow at a compound annual growth rate (CAGR) of 4.59%, reaching 500 million tonnes by FY40, up from 223 million tonnes in FY23.
In terms of volume, India’s oil consumption is forecasted to increase from 4.05 million barrels per day (MBPD) in FY22 to 7.2 MBPD by 2030 and 9.2 MBPD by 2050. Diesel demand is projected to double to 163 million tonnes by 2029-30, with petrol and diesel together accounting for 58% of India’s total oil demand by 2045. The demand for oil is expected to remain strong due to rapid economic expansion and urbanisation.
Natural gas consumption is also predicted to grow at a CAGR of 12.2%, reaching 550 million cubic meters per day (MCMPD) by 2030, up from 174 MCMPD in 2021. Additionally, Indian refiners plan to increase refining capacity by 56 million tonnes per annum (MTPA) by 2028, bringing the total refining capacity to 310 MTPA. The goal is to double refining capacity to 450-500 million tonnes by 2030.
Oil and gas stocks are highly affected by fluctuations in global oil prices. Changes in supply and demand, along with geopolitical factors, can significantly influence a company’s profitability. It’s crucial for investors to monitor oil price trends and understand how companies manage price fluctuations.
Government policies regarding subsidies, taxes, and environmental regulations play a crucial role in the profitability of oil and gas companies. Understanding the impact of these policies is essential for making informed investment decisions.
Evaluating a company’s financial health, including revenue growth, profit margins, and debt levels, is key. Companies with lower debt and stable earnings are better positioned to navigate market challenges.
A company’s efficiency and the quality of its infrastructure significantly affect its profitability. Firms with efficient production, distribution networks, and a focus on technological improvements are more likely to manage costs effectively and seize growth opportunities.
Investing in oil and gas stocks requires careful analysis of a company’s financial performance, market position, and growth, while also considering the risks of energy price volatility and regulatory changes. By aligning these factors with your investment goals, you can make informed decisions. Seeking advice from a financial expert can further tailor investments to meet specific financial objectives and risk tolerance.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: May 6, 2025, 12:07 PM IST
Kusum Kumari
Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.
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