Top Oil Shares in India (2025)

The world’s energy systems are undergoing rapid transitions, and the Oil and Gas industry isn’t left behind. The Oil and Gas production in India has contributed significantly to the country’s economic growth by covering two-thirds of the primary needs. However, the country’s domestic oil and gas production is insufficient to meet its growing demand. As a result, India became heavily dependent on imports. This scenario has led to an increased interest among investors to explore the gas and oil shares of Indian companies. Given the changing landscape, gas and oil company stocks have become popular investment choices. Thus, in this blog, we’ll discuss some valuable insights about oil and gas share prices. So, without further ado, let’s dive into the world of popular oil and gas company shares and understand why investors are keen on investing in this sector.

List of Best Oil Sector Stocks in India

We have compiled a list of some of the most well-known natural gas stocks in India and oil company stocks. Let’s take a look at them.

Disclaimer: Please note that the above table is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.

Note: The data on this oil and petroleum share list is dynamic and subject to change. The data is derived from the Tickertape Stock Screener on 2nd January 2025, using the following filters:

• Sector > Energy: Select all – Equipment & Services, Exploration & Production, Refining & Marketing, and Storage & Transportation
• 1Y Return
• 5Y Average Net Profit Margin
• 5Y Average Return on Investment
• Fundamental Score: Set to High – Sort from highest to lowest

🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.

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Oil and Gas Company’s Shares: A Brief Overview

Let’s review the crude oil stocks India listed above on the petrol share list:

Oil and Natural Gas Corporation Ltd

ONGC stands as a leading public sector enterprise in India’s oil and gas exploration sector. Demonstrating strong financial stability, its debt-to-equity ratio over the last five years is 48.95%, slightly lower than the industry average of 49.34%. The oil and gas company in India has also achieved free cash flow growth of 11.56%, outperforming the industry benchmark of 9.53%. With a net profit margin of 8.12%, ONGC maintains its position as a robust player in the energy sector.

Jindal Drilling and Industries Ltd

Jindal Drilling specialises in offshore oilfield services, showcasing impressive liquidity with a current ratio of 138.53% over the last five years, significantly exceeding the industry average of 12.2%. Additionally, the oil and gas company in India maintains a net profit margin of 7.92%, highlighting its operational efficiency in a competitive market.

Hindustan Oil Exploration Company Ltd

HOEC is a prominent name in oil and gas exploration, known for its prudent financial management. The company’s debt-to-equity ratio of 28.38% over the last five years is considerably better than the industry average of 49.34%. Furthermore, the oil and gas company in India has current ratio of 102.1% surpasses the industry standard of 82.92%, reflecting strong liquidity and financial health.

Reliance Industries Ltd

As a diversified conglomerate with a significant presence in the oil and gas sector, Reliance Industries boasts a debt-to-equity ratio of 50.37%, which is more favourable compared to the industry average of 66.21%. Its current ratio of 107.03% over the last five years exceeds the industry benchmark of 89.43%. Despite operating on a large scale, RIL maintains a net profit margin of 7.59%, underscoring its efficiency in managing operations and profitability.

Petronet LNG Ltd

Petronet LNG, a key player in liquefied natural gas (LNG) infrastructure, exhibits excellent financial metrics. Its debt-to-equity ratio stands at 25.69%, significantly lower than the industry average of 36.44%. The company’s liquidity position is remarkable, with a current ratio of 349.24% over the last five years, well above the industry average of 313.76%. A net profit margin of 6.85% further highlights the petrol stock in India’s capability to generate consistent earnings.

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How to Invest in Natural Gas & Oil Shares in India?

Investing in the best oil stocks in India can be done through several avenues. First, you can open a trading account with a stockbroker and buy oil stocks of the publicly listed Indian oil and gas companies.

Additionally, you can explore mutual funds and exchange-traded funds (ETFs) that focus on the energy sector and other top oil and gas companies in India. Consider investing in international energy companies listed on foreign stock exchanges. You can do it through international brokerage accounts or ETFs that track global energy indices for global exposure.

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Now, you’re aware of the challenges associated with investing in oil shares. You might want to know how we can diversify the risks involved. Fret not, you can track the performance of multiple oil company stocks by investing in Energy Tracker smallcase.

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This smallcase offers several compelling reasons: 

• The consistent demand for energy makes it a resilient investment option. 
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• Offers a balanced exposure to the sector while including traditional and renewable energy companies.

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What are Oil & Gas Company Stocks?

Oil company shares are publicly traded companies involved in the exploration, production, refining, and distribution of oil and gas share prices. These oil shares usually engage in upstream activities such as drilling and exploration, midstream activities (transportation and storage), and downstream activities (refining and distribution of petroleum products).

Oil and Gas Sector – A Synopsis

The Oil & Gas industry in India dates back to 1867, when oil was discovered at Makum near Margherita, about 8 miles from Digboi. Since then, the sector has come a long way. Thus, due to the growing gas fields in India, the Indian government has taken several steps to develop the industry and make it more self-sufficient.

The Ministry of Petroleum and Natural Gas, Government of India, closely regulates oil and gas companies in India, covering all supply chain links. These include exploration and production, refining, marketing, and distribution, as well as importation, exportation, and conservation.

Currently, the Indian oil and gas industry is transitioning towards cleaner and greener energy sources such as natural gas and renewables. Therefore, the government’s efforts to promote natural gas usage and increasing investment in renewable energy sources like solar and wind power indicate a move towards a more sustainable energy mix. 

The Indian Oil and gas sector is projected to grow at a moderate pace, with crude oil’s share in India’s energy mix expected to decline gradually. Therefore, companies in the Indian Oil and gas sector are adapting to new challenges and exploring new opportunities. As a result, investing in crude oil stock in India could be a good investment opportunity. As always, investors must do their own research and/or consult their financial advisor before investing.

How to Identify Best Gas and Oil Stocks to Buy?

Identifying oil and the best crude oil related stocks in India for investing requires careful research and analysis. Here are some key steps you can follow:

Understand the Sector

• Research the oil and gas industry: It can be helpful to familiarise yourself with the different segments (upstream, midstream, downstream) and their associated risks and rewards.
• Track Oil and Gas Prices: Understand the factors influencing oil prices, such as global supply and demand, geopolitical events, and economic conditions.

Select Your Investment Criteria for Oil Shares

• Risk Tolerance: Determine your risk tolerance and choose stocks accordingly. Large integrated companies offer stability, while smaller exploration companies can be riskier but offer higher potential returns.
• Investment Horizon: Consider your long-term goals and choose the top 100 oil and gas companies in India with solid growth potential or sustainable dividends.
• Financial Performance: Analyse company financials, including revenue, profitability, debt levels, and cash flow.

Research Individual Oil Shares

• Financial Analysis: Evaluate the company’s financial statements, including income statements, balance sheets, and cash flow statements.
• Management Team: Research the experience and track record of the management team.
• Competitive Landscape: Analyse the company’s position within the industry and its competitive advantages
• Growth Potential: Assess the company’s future growth prospects, including new projects and acquisitions.

Features of Gas & Oil Shares

Here are some of the key features of oil and gas sector stocks:

• High Volatility: Gas and oil share list prices are highly volatile. Thus, this can lead to significant volatility in the gas and oil share prices, which can be a source of risk for investors. However, it can also create opportunities for those who can time the market correctly.
• Cyclical: The oil and gas sector, including crude oil stocks in India, is cyclical, meaning that it experiences periods of boom and bust. This cyclicality can be a challenge for investors, as it can be difficult to predict when the next boom or bust will occur.
• High Dividend Yields: Many oil and gas companies pay high dividend yields. Thus, it can be a good way for investors to generate income from their investments.
• Exposure to Global Factors: The oil and gas sector is heavily influenced by global factors, such as geopolitical events and economic conditions. This can make it a complex sector to explore, but it can also offer opportunities for investors who understand these factors.
• Potential for Long-Term Growth: Investors anticipate a continued growth in the demand for oil and gas sector stocks globally in the coming years. This could lead to long-term growth for oil and gas companies.
• ESG Investing: Environmental, social, and governance (ESG) investing is potentially becoming popular. Companies committed to sustainability are increasingly attracting investors’ attention, which could lead to increased demand for oil and gas companies that can demonstrate their commitment to ESG principles.

Types of Oil Shares

The oil and gas industry is one of the largest and most influential sectors in the global economy, with many companies involved in every stage of the process. Therefore, these oil share prices are broadly categorised into three different categories that have been listed below:

• Upstream Stocks: This primarily involves oil and natural gas exploration and production. These petrol stocks in India are responsible for finding and extracting these resources from the ground. Therefore, Oil and Natural Gas Corporation (ONGC) is an example of upstream stock.
• Midstream Stocks: Involved in the transportation and storage of oil and natural gas. They operate pipelines, terminals, and storage facilities that move these resources from production to refineries or other customers. Thus, Bharat Oil & Waste Management Limited is an example of a midstream stock.
• Downstream Stocks: These crude oil shares, including petroleum shares in India, are refining and marketing oil and gas products. They take the crude oil upstream companies to produce and refine it into usable products such as gasoline, diesel, and jet fuel. They also distribute these products to customers such as gas stations and airlines. Thus, Indian Oil Corporation Limited (IOCL) is an example of downstream stock.

Who Should Invest in Indian Oil & Gas Companies?

Anyone can invest in Indian oil and gas companies; however, investors with a long-term horizon and those who are comfortable with risk can consider investing. Additionally, many Indian oil and gas companies have a history of paying regular dividends to shareholders. One must consider risk appetite and investment goals before investing.

Benefits of Investing in Oil Shares

Investing in oil sector stocks can provide several potential benefits, from the consistent demand for energy to the potential for good dividends. Thus, some of the other benefits of investing in oil shares include:

• Diversification: The oil sector, including CNG related stocks in India, can be a valuable addition to a diversified investment in the oil portfolio. Additionally, it offers exposure to a different industry than traditional stocks, such as technology or healthcare.
• Potential for High Returns: The oil & gas companies can be highly profitable during high demand and limited supply periods. It may lead to the potential for high returns for investors.
• Dividend Income: Many oil & gas companies pay their shareholders dividends, providing a steady income stream.
• Inflation Hedge: The oil and gas stock prices tend to rise along with inflation. This can help investors protect their purchasing power over time.
• Geopolitical Stability: Some oil companies’ share prices operate in politically stable countries, providing a relatively secure investment opportunity compared to other emerging markets.

Challenges While Investing in Oil Shares India

Every investment comes with its challenges and difficulties. Thus, let’s understand the two primary challenges while investing in the best oil company shares in India.

• Price Volatility: The high price volatility in oil and gas companies poses one of the biggest challenges for those investing in even the best oil company in India. Many factors can affect oil share prices, including global supply and demand, geopolitical tensions, and natural disasters.
• Environmental Concerns: Another challenge facing investors while investing in oil stocks in India is the ecological impact of fossil fuels. As environmental awareness increases, stakeholders are pressuring oil and gas companies in India to reduce their carbon footprint and transition to sustainable sources. As a result, it can be challenging for oil and petrol shares in India to maintain profitability.

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To Wrap It Up…

To conclude, energy needs are growing faster as income levels and population show rising trends in the country. Since renewable energy stocks are increasing due to the government’s push for net zero emissions by 2070, investing in natural gas and oil shares can offer attractive returns shortly. Therefore, consider your investment goals and risk appetite before investing in any natural gas shares or petroleum stocks in NSE.

However, you can also invest in Energy Tracker smallcase to avoid the hassle of researching and choosing the best oil and gas company stocks.

Frequently Asked Questions on Oil Stocks in India

Stocks Under Budget

If you are looking for stocks under a particular price range, here’s the collection of stocks under a specifc budget:

Popular Group of Companies on NSE