Oil India shares gained as much as 7 per cent in intraday trade on Tuesday as brokerages reiterated their bullish stance on the stock following the announcement of June quarter earnings (Q1FY27).

The PSU stock opened 3.7 per cent higher at ₹464.40 and extended the gains to hit a high of ₹484 on the National Stock Exchange (NSE).

Today's rally marked the second consecutive session of gains for Oil India, with the stock surging 10 per cent during the period. 

Post Q1FY27 results, Emkay Research has upgraded Oil India (OIL) to 'Buy' from 'Add' on attractive valuation and strong production outlook. It has retained FY27-29 earnings and target price of ₹575. The target implies an upside of 27 per cent from the previous close of ₹453.

Analysts said that Oil India's Q1 revenue was largely in line, with crude production a 3 per cent beat, while gas was 5 per cent lower. Ebitda at ₹4,079 crore was a 4 per cent beat on lower production costs/statutory levies, while PAT of ₹2,870 crore was a 24 per cent beat, largely driven by higher other income.

Crude production rose 11 per cent Y-o-Y to 0.95 mmt, with the current run-rate higher at ~11ktpd. The management expects ~1 mmt output each in 2Q-4Q, implying FY27 production of +3.95-4mmt, and targets 4.2mmtpa by FY29.

Oil India is targeting 100 wells in FY27, with drilling to rise 10 per cent annually, with increasing focus on deepwater.

The brokerage said that it factors in $85/80 crude in FY27/28E. Any material decline in crude prices remains a key risk for the company.