Home › Stocks › Indian Oil vs ONGC

Indian Oil vs ONGC — which is better value?

Refining and marketing against upstream exploration. This page sets the two side by side on their filed records, what each share price assumes, and what decides each one's value.

FairStocks Research
Updated 15 Nov 2026 · 3 min read
| NSE: IOC NSE: ONGC
On this page ▾
  1. Two businesses
  2. The records side by side
  3. What each price assumes
  4. What decides each value
  5. What could go wrong
  6. Which is better value?
  7. Related comparisons
  8. Questions
In 30 seconds

Today's prices ask more of ONGC than of Indian Oil.

At current prices, buyers of Indian Oil are assuming about 0% growth against 2% in its own record; for ONGC it is 0% against 0%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.

  • Valuation method: Indian Oil on estimate withheld; ONGC on discounted cash flow.
  • Size: ONGC is worth about 1.4 times Indian Oil on the stock market.
  • Record: On revenue the two have grown at much the same pace: Indian Oil compounded at about 7% a year (FY2018–FY2026) and ONGC at about 8% (FY2018–FY2026).
  • What to watch: gross refining margins at Indian Oil; crude oil prices at ONGC.
Indian OilONGC
Price₹144₹225
Market cap₹1.98L Cr₹2.83L Cr
P/E4.25.7
P/B0.900.76
Fair value 🔒 sign in₹0,000₹0,000
Upside 🔒 sign in+00%+00%
Valued onEstimate withheldDiscounted cash flow
See both fair values, side by sideEvery step of each working, the scenarios and the reports Free during launch →

01Two businesses

India's biggest refiner and fuel retailer

Indian Oil Corporation (IOC) is a state-owned oil company and India's largest refiner, with refineries including Panipat, Mathura, Gujarat and Paradip. It runs the country's largest network of petrol pumps and of product pipelines.

ONGCONGC

India's oil and gas producer — and a refiner too

Oil and Natural Gas Corporation is India's largest producer of crude oil and natural gas, majority-owned by the Government of India. Its overseas arm, ONGC Videsh, holds oil and gas assets in other countries.

02The records side by side

On revenue the two have grown at much the same pace: Indian Oil compounded at about 7% a year (FY2018–FY2026) and ONGC at about 8% (FY2018–FY2026). By revenue, Indian Oil is about 1.4 times the size of ONGC. Indian Oil kept 4.8% of revenue as net profit in FY2026; ONGC kept 7.5% of revenue as net profit in FY2026. Indian Oil reported a net loss in FY2020; ONGC was profitable in every year shown.

Indian Oil. The FY2020 loss and the big swings since come mostly from refining margins and inventory gains or losses as crude prices moved, not from changes in volume.
ONGC. Consolidated revenue is dominated by HPCL's and MRPL's fuel sales, so swings in it say more about oil prices and refining than about ONGC's own production.

Full ten-year tables and charts are on each company's page: Indian Oil · ONGC.

03What each price assumes

Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.

Price implies
0%
growth
Record supports
2%
growth
Price implies
0%
growth
Record supports
0%
growth

04What decides each one's value

  • Gross refining marginsThe difference between product prices and crude costs drives refining profit.
  • Marketing marginsHow far retail prices are allowed to track costs decides fuel-retail profit.
  • Crude oil pricesHigher prices lift ONGC's realisations, though government levies have capped the gains in the past.
  • Production volumesMany fields are mature; new deep-water projects need to offset natural decline.

05What could go wrong

  • Government pricingRetail fuel prices can be held down when crude rises.
  • Crude volatilitySharp moves in oil prices create big swings in reported profit.
  • Government interventionWindfall taxes and pricing controls have taken away upside before.
  • Field declineWithout new discoveries, output falls year after year.

06Which is better value?

Indian Oil
Fair value per share
₹0,000
Upside
+00%
ONGC
Fair value per share
₹0,000
Upside
+00%

Sign in free to see which trades further below its worth

  • ✓Both fair values per share — each on the method that fits the business
  • ✓Every step of both workings — growth, margins and cost of capital, with sources
  • ✓Bull, base and bear cases — for each company
  • ✓Downloadable reports — the full write-up for each, yours to keep
Free during launch · unlimited valuations · no card required

08Questions people ask

Is Indian Oil or ONGC better value?

That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, Indian Oil trades at 4.2 times earnings and 0.90 times book value, and ONGC at 5.7 times earnings and 0.76 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.

What is the difference between Indian Oil and ONGC?

Indian Oil Corporation (IOC) is a state-owned oil company and India's largest refiner, with refineries including Panipat, Mathura, Gujarat and Paradip. Oil and Natural Gas Corporation is India's largest producer of crude oil and natural gas, majority-owned by the Government of India.

Are Indian Oil and ONGC valued the same way?

No. Indian Oil is valued on estimate withheld and ONGC on discounted cash flow, because forcing one model onto both would misstate at least one of them.

What does today's price assume for Indian Oil and ONGC?

Worked backwards from the share price, Indian Oil needs about 0% growth and ONGC about 0% growth, against 2% and 0% in their own records.

About this comparison

Written by the FairStocks research team from both companies' filed accounts; figures refresh as new results are filed. Each company is valued on the method that fits it — see a fully worked example or the valuation guides. Educational research, not investment advice.

See both fair valuesUnlock free