More Stories

Informist, Tuesday, May 26, 2026

 

Please click here to read all liners published on this story

--ONGC Jan-Mar net profit INR 66.50 bln
--Analysts saw ONGC Jan-Mar net profit INR 87.02 bln
--ONGC Jan-Mar revenue INR 359.28 bln
--Analysts saw ONGC Jan-Mar revenue INR 362.99 bln
--ONGC Jan-Mar net profit INR 66.50 bln vs INR 64.48 bln year ago
--ONGC Jan-Mar revenue INR 359.28 bln vs INR 349.82 bln year ago
--ONGC to pay INR 1 per share final dividend
--ONGC board OKs in-principle JV with Gujarat Maritime Board for liquid port
--ONGC OKs $325-mln parent company guarantee by step-down arm in Brazil
--ONGC FY26 net profit INR 328.94 bln vs INR 356.10 bln year ago
--ONGC FY26 revenue INR 1.33 tln vs INR 1.38 tln year ago
--ONGC Jan-Mar operating margin 26.91% vs 28.46% year ago
--ONGC Jan-Mar offshore revenue INR 253.41 bln vs INR 247.83 bln yr ago
--ONGC Jan-Mar onshore revenue INR 105.87 bln vs INR 102.00 bln yr ago
--ONGC Jan-Mar crude oil output 4.45 mln tn vs 4.70 mln tn year ago 
--ONGC Jan-Mar natural gas output 4.78 bln cu mtr vs 4.89 bln cu mtr yr ago 
--ONGC:W Asia war affected pipeline replacement project from western offshore 
--ONGC: West Asia war affected oil, gas output from western offshore 
--ONGC: Mumbai high field shows strong early signs of production revival 
--ONGC: Daman upside project to up gas production by 9% of current output 
--ONGC: Projects worth INR 330.75 bln under progress in western offshore 
 

 

By Sunil Raghu

 

AHMEDABAD – Oil and Natural Gas Corp. Ltd. reported a sharply lower than expected net profit in the March quarter, led by a rise in written-off well exploration costs and higher statutory levies. This is the second successive year-on-year rise in the company's bottom line. 

 

The state-owned company's net profit in the March quarter rose 3% on year to INR 66.50 billion. The bottom line was sharply lower than the analysts' estimate of INR 87.02 billion. ONGC's revenue from operations rose 3% on year to INR 359.28 billion. The analysts had estimated the company's top line to be INR 362.99 billion. The company announced a final dividend of INR 1 per share.

 

ONGC was expected to report a 35% year-on-year increase in its net profit for the March quarter, riding on rising global crude oil prices. Crude oil prices were sharply higher in the March quarter. Brent crude rose 28% on year to about $104 per barrel in the March quarter, following the war in West Asia and the closure of the Strait of Hormuz for global crude oil and natural gas.

 

The company's total expenses rose 6% on year to INR 300.32 billion. Within this, written-off exploratory well costs increased 17% to INR 48.77 billion, while statutory levies increased 13% to INR 76.29 billion. The upstream company's other expenses increased 23% to INR 92.13 billion.

 

The company's total income was INR 385.56 billion for the March quarter, up over 4% on year. However, its other income improved 27% on-year to INR 26.28 billion.

 

ONGC's offshore revenue from operations rose 2% on year to INR 253.41 billion in the March quarter. The profit before tax and interest from the offshore segment fell 8% on year to INR 73.44 billion. Its onshore revenue from operations rose 4% on year to INR 105.87 billion. The profit from the onshore segment declined 23% on year to INR 11.98 billion.

 

The state-run enterprise is primarily engaged in exploration and production of crude oil, natural gas, and some value-added products. It produces around 70% of India's crude oil and 84% of its natural gas. Crude oil production accounted for nearly 45% of the company's turnover in 2024-25 (Apr-Mar), while natural gas production accounted for around 48%. ONGC sells a bulk of its domestic production to refiners such as Hindustan Petroleum Corp. Ltd. and Mangalore Refinery and Petrochemicals Ltd.

 

The company's crude oil price realisation from the nominated category of fields was $77.32 per barrel, up over 6% on year, while for the joint venture category, the realisation was $77.87 per barrel, up 5% on year. The company's March quarter gas price realisation under the nominated category was $6.40 per million British thermal units, down 1.5%. The price realisation from new gas wells was $7.71 per million British thermal units, down over 16% on year. The company's operating margin was 26.91% during the quarter, down from 28.46% in the year-ago quarter, mainly due to a decline in gas price realisations.

 

The company's standalone crude oil output for the March quarter fell 5% on year to 4.45 million tonnes from 4.7 million tonnes. For FY26, it was 18.355 million tonnes, down from 18.558 million tonnes in FY25. The company's natural gas output declined 2% on year to 4.78 billion cubic meters in the March quarter. For FY26, it stood at 19.533 bcm, marginally lower than 19.564 bcm in FY25.

 

For the year ended Mar. 31, the company's net profit declined 8% to INR 328.94 billion. ONGC's revenue fell 4% to INR 1.33 trillion in 2025-26 (Apr-Mar).

 

The company said the West Asia crisis affected the pipeline replacement project and oil and gas output from the western offshore, with some production briefly impacted during the hookup operation of the pipeline, compressors, and turbines at two existing wells and surface facilities in the western offshore. Projects worth INR 330.75 billion are in progress in the western offshore for the company.

 

While ONGC's production has remained broadly flat in recent years, the company has taken steps to improve it. As a result, the Mumbai High field offshore Mumbai coast has begun showing strong early signs of production revival within the first year of BP's onboarding as technical service provider, with oil production reaching 102% and gas production reaching 108% of the target baseline, the company said. Other than these, the Daman Upside Development Project also saw an increase in gas production equivalent to 9% of ONGC's current output.

 

The company board accorded in-principle approval for a 50:50 joint venture with the Gujarat Maritime Board to develop a 5 million tonnes-per-annum liquid port at Dahej. The ONGC board also approved providing a $325 million parent company guarantee by its step-down subsidiary, ONGC Nile Ganga BV, to the operator of a block in Brazil.
 
Tuesday, ONGC shares ended INR 287.50 on the National Stock Exchange, up 0.9%. The company announced its March quarter results after market hours.  End

 

Edited by  Saji George Titus

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.