Best Oil & Gas Stocks in March 2025 – Based on 5yr CAGR; Oil India, CPCL & More

The oil and gas sector is one of India’s 8 core industries and significantly impacts decision-making across key economic sectors. India’s oil demand is expected to double, reaching 11 million barrels per day by 2045. Check the best oil and gas stocks in India for March 2025, based on 5-yr CAGR and other parameters like net profit margin and debt-to-equity ratio.

Best Oil and Gas Stocks for March 2025 – Based on 5yr CAGR

Note: The best oil and gas stocks listed here are as of March 3, 2025. The stocks are picked from the Nifty 500 universe and are sorted based on the 5-yr CAGR.

Overview of Best Oil and Gas Stocks in India for March 2025

1. Oil India Ltd

Oil India Ltd is involved in the exploration, development, and production of crude oil and natural gas, along with crude oil transportation and LPG production. The company also offers various E&P-related services for oil blocks. Driven by increased crude oil production, the company’s PAT grew by 28.38%, rising to ₹4,522.71 crore from ₹3,523.02 crore in the same period last year. The EBITDA margin for Q3 FY25 also improved to 42.76% from 41.34% in Q3 FY24.

Key Metrics:

• ROCE: 12.61%
• ROE: 13.41%

2. Chennai Petroleum Corporation Ltd

Chennai Petroleum Corporation Limited engages in refining crude oil to produce and supply various petroleum products, along with the manufacture and sale of lubricating oil additives. In Q3 FY25, the company’s total income stood at ₹15,687.64 crore, down from ₹20,456.42 crore in the same period last year. Profit for the quarter declined to ₹20.78 crore, compared to ₹365.28 crore in Q3 FY24.

Key Metrics:

• ROCE: 35.54%
• ROE: 33.69%

3. Aegis Logistics Ltd

Aegis Logistics, formerly known as Aegis Chemical Industries Ltd, was incorporated in 1956 and provides logistics solutions for the oil, gas, chemical, and petrochemical industries. In Q3 FY25, the company’s revenue stood at ₹1,707 crore, reflecting a 9% decline compared to ₹1,873 crore in Q3 FY24. Despite the drop in revenue, the company reported a 5% year-on-year growth in Profit After Tax (PAT), which increased to ₹160 crore from ₹152 crore in the same period last year.

Key Metrics:

• ROCE: 14.19%
• ROE: 13.38%

4. Great Eastern Shipping Company Ltd

Great Eastern Shipping Company Ltd, along with its subsidiaries, is a prominent player in the Indian shipping and oil drilling services industry. They reported a financial performance in Q3 FY25, with revenue rising to ₹1,501 crore from ₹1,396 crore in Q3 FY24. The company also recorded a rise in net profit, reporting ₹569 crore in Q3 FY25, up from ₹552 crore in Q3 FY24.

Key Metrics:

• ROCE: 23.06%
• ROE: 19.34%

5. Mangalore Refinery and Petrochemicals Ltd

Mangalore Refinery & Petrochemicals Limited (MRPL) was initially established as a joint venture between the AV Birla Group and Hindustan Petroleum Corporation Limited (HPCL). It now operates as a subsidiary of Oil & Natural Gas Corporation (ONGC). The company is primarily involved in refining crude oil, petrochemicals, trading aviation fuels, and distributing petroleum products through retail outlets and transport terminals.

For Q3 FY25, MRPL reported revenue from operations of ₹25,601 crore, compared to ₹28,364 crore in Q3 FY24. The company’s PAT stood at ₹304 crore for the quarter, down from ₹387 crore in the same period last year.

Key Metrics:

• ROCE: 28.80%
• ROE: 31.08%

Best Oil and Gas Stocks for March 2025 – Based on Net Profit Margin

Note: The best oil and gas stocks listed here are as of March 3, 2025. The stocks are picked from the Nifty 500 universe and are sorted based on the net profit margin.

Best Oil and Gas Stocks for March 2025 – Based on Debt-to-Equity Ratio

Note: The best oil and gas stocks listed here are as of March 3, 2025. The stocks are picked from the Nifty 500 universe and are sorted based on the debt-to-equity ratio.

Oil and Gas Sector Growth in India

The oil and gas sector is one of India’s eight core industries and plays a crucial role in shaping decision-making across various key economic segments.

With India’s economic growth closely linked to its energy demand, the need for oil and gas is expected to rise, making the sector an attractive investment opportunity. As of 2023, India remained the third-largest consumer of oil globally, with crude oil production reaching 13.26 million metric tonnes (MMT) between April and September 2024.

According to the International Energy Agency (IEA) India Energy Outlook 2021, India’s primary energy demand is projected to nearly double to 1,123 million tonnes of oil equivalent by 2040, driven by an expected GDP growth to US$ 8.6 trillion.

India’s refining capacity has grown from 215.1 million metric tonnes per annum (MMTPA) to 256.8 MMTPA over the past decade. This capacity is further projected to reach 309.5 MMTPA by 2028, highlighting the sector’s rapid expansion.

Conclusion

Apart from these, there can be several other oil and gas stocks in India for March 2025. Conducting a thorough analysis of each company’s financial performance, market position, and future growth potential can help in making informed investment decisions.

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.