Best Oil and Gas Stocks in India in August 2025- Oil India, ONGC, and Others Based on 5Y CAGR

India’s oil and gas sector is experiencing a major revival, fueled by the opening of nearly one million square kilometers of previously restricted offshore areas in 2022. This has unlocked vast deepwater exploration opportunities, especially in the Andaman-Nicobar basin. Leading companies like ONGC and Oil India Ltd have launched ambitious ultra-deepwater drilling campaigns, revealing promising signs of active petroleum systems.

With significant hydrocarbon discoveries and growing reserves, the sector is set for strong growth. In this dynamic environment, we highlight the best oil and gas stocks for August 2025 based on their performance, potential, and strategic advantages.

Top Oil and Gas Stocks in India in August 2025 Based on 5Y CAGR

Note: Top oil and gas stocks listed here are picked from the Nifty 500, and data is as of July 30, 2025. The stock list is ranked based on 5-year CAGR.

Overview of the Top Oil and Gas Stocks in August 2025

Oil India Ltd

Oil India has drilled around 70 wells in 11 months, exceeding last year’s activity. It confirmed hydrocarbon presence in the North Bank of the Brahmaputra, marking a breakthrough for further exploration. The company plans to boost upstream production from 6.7 million to 10–12 million tons by 2030 through strategic bidding and partnerships.

Key Metrics:

• EPS: ₹8.05
• Return on Equity (ROE): 13.41%

Oil and Natural Gas Corporation

ONGC has reversed the decline in crude oil and gas output, with notable gains from the KG-98/2 field, now producing 35,000 barrels/day and 3 MMSCMD of gas. Backed by focused initiatives and steady capital spending, the company has seen quarter-on-quarter production growth across Q1 to Q3, marking a positive trend in natural gas output.

Key Metrics:

• EPS: ₹5.82
• Return on Equity (ROE): 14.73%

Hindustan Petroleum

HPCL has shown stronger-than-industry revenue growth, with a 5-year CAGR of 10.01%, outpacing the industry average of 9.78%. This indicates growing potential to expand market share. In fact, HPCL’s market share rose from 15.49% to 15.65% over the same period, reflecting its improving position relative to competitors in the oil and gas sector.

Key Metrics:

• EPS: ₹16.06
• Return on Equity (ROE): 40.45%

Indian Oil

Indian Oil plans to invest around ₹72,000 crore to boost its refining capacity by 25%, aiming for 88 MMTPA. Key expansions at the Panipat, Gujarat, and Barauni refineries will raise throughput and petrochemical output. The company spent ₹40,000 crore last year and has earmarked ₹35,000 crore for FY 2024–25 to support this growth.

Key Metrics:

• EPS: ₹5.90
• Return on Equity (ROE): 25.19%

Reliance Industries Ltd

Reliance Industries, ranked 49th in Forbes Global 2000, has signed a Joint Operating Agreement with ONGC and BP for offshore exploration in the Saurashtra basin under the Hydrocarbon Exploration and Licensing Policy. The three firms will jointly explore Block GS-OSHP-2022/2 off India’s west coast, aiming to boost domestic hydrocarbon production.

Key Metrics:

• EPS: ₹19.95
• Return on Equity (ROE): 7.94%

Top Oil and Gas Stocks in India in August 2025 – Based on Debt-to-Equity Ratio

Note: Top oil and gas stocks listed here are picked from the Nifty 500, and data is as of July 30, 2025.

Know more about "What is Debt to Equity Ratio?"

Conclusion

India’s oil and gas sector continues to evolve with strong performers like Oil India, ONGC, and Reliance leading the charge in production growth, investment, and innovation. For investors looking to tap into this potential, having a demat account is essential to easily buy and manage shares in these companies. With growing opportunities in this sector, staying informed and prepared can help investors make the most of their investments.

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.