Prabhudas Lilladher Recommends 'Accumulate' ONGC, Sets Target at Rs 297

• Prabhudas Lilladher revises ONGC rating to 'Accumulate' from 'Buy' due to sustainable volume growth concerns.
• Standalone oil and gas sales volumes saw modest YoY increases, but oil sales decreased sequentially.
• Oil price realization dropped sharply to USD61.6/bbl from USD72.6/bbl YoY.
• Revenue declined QoQ and YoY, while EBITDA also fell due to lower oil realization.
• PAT increased YoY supported by lower tax outgo, despite a QoQ decrease; FY27 production expectations revised slightly lower.