Oil & Natural Gas Corporation Limited
26 May 2026
ONGC Reports 29.9% YoY Jump in Consolidated Net Profit
Oil & Natural Gas Corporation Limited – FY 2026 Results Announcement (26 May 2026)
Introduction
On 26 May 2026, Oil & Natural Gas Corporation Limited (ONGC) released its FY 2026 financial and operational results, together with a range of strategic updates, through a press release.
1. Financial Highlights
Consolidated Performance
| Metric | FY 2026 | FY 2025 | YoY Change |
|---|---|---|---|
| Gross Revenue (₹ crore) | 6,62,247 | 6,63,262 | ‑0.2 % |
| Net Profit (₹ crore) | 49,793 | 38,329 | +29.9 % |
| Q4 Net Profit (₹ crore) | 13,678 | 8,965 | +52.6 % |
- Consolidated net profit surged 53 % in Q4 FY 26 and 30 % for the full year.
- Total dividend declared for FY 26 is ₹ 13.25 per share (≈ 51 % payout), amounting to ₹ 16,669 crore – the highest ever.
Standalone Performance (ONGC only)
| Metric | FY 2026 | FY 2025 | YoY Change |
|---|---|---|---|
| Gross Revenue (₹ crore) | 1,32,509 | 1,37,846 | ‑3.9 % |
| Net Profit (₹ crore) | 32,894 | 35,610 | ‑7.6 % |
| Q4 Net Profit (₹ crore) | 6,650 | 6,448 | +3.1 % |
Crude Oil Realization (Nomination)
- Net Realization (US$/bbl): FY 26 = $68.40 (‑11 % YoY)
- Net Realization (₹/bbl): FY 26 = ₹6,042 (‑7.1 % YoY)
Gas Pricing
- Nomination Gas Price: $6.60 / mmbtu in FY 26 (↑ 1.5 % YoY)
- New‑Well Gas Price: $8.08 / mmbtu in FY 26 (‑11.4 % YoY)
Revenue from new‑well gas reached ₹ 6,678 crore, contributing >21 % of total nomination‑gas revenue.
2. Production Overview
| Segment | FY 2026 | FY 2025 |
|---|---|---|
| Crude Oil – ONGC Standalone (MMT) | 18.355 | 18.558 |
| Crude Oil – JV Share (MMT) | 1.170 | 1.294 |
| Condensate (MMT) | 0.977 | 1.040 |
| Natural Gas – ONGC Standalone (BCM) | 19.533 | 19.654 |
| Natural Gas – JV Share (BCM) | 0.434 | 0.536 |
Production remained broadly flat year‑on‑year, with short‑term dips attributed to reservoir complexities (98/2 field) and operational interruptions in Western Offshore.
Key Production‑Related Initiatives
- Technical Service Provider (TSP‑2) contract awarded for the entire Western Offshore after successful TSP‑1 results in the Mumbai High (MH) field.
- Mega Offshore Gas – Daman Upside Development Project (DUDP) entered commercial production, expected to add ~9 % to ONGC’s gas output.
- Projects under progress in Western Offshore total ₹ 33,075 crore, the highest recent investment, aimed at future production growth.
- New‑well gas now accounts for 17 % of total production and 21 % of nomination‑gas revenue.
3. Exploration & Discoveries
- PROJECT DeepX launched to accelerate deep‑water drilling; drilling effort to double over the next two years under “Samudra Manthan”.
- FY 26 drilling activity:
- 4 exploratory wells in ultradeep Andaman Basin (plus extensive 2D/3D seismic).
- 13 exploratory wells in Category‑II & III basins (Andaman, Bengal, Kutch, Ganga, Narmada, South‑Reva).
- Hydrocarbon discoveries: 3 new finds in shallow Mumbai offshore (2 new prospects, 1 new pool). Additional discoveries reported in Q4 FY 25‑26 and Q1 FY 26‑27 (e.g., MBS191HCA‑1, MBSWO231‑AAA‑1, BKAD_Shift).
- Monetisation of three discoveries (Anor‑1, Gojalia‑14, Chitabari‑1) and a small field in Rajasthan.
Reserve Accretion (2P)
| Area | FY 2026 (MMToE) | FY 2025 (MMToE) |
|---|---|---|
| ONGC‑operated domestic | 44.01 | 25.21 |
| ONGC share in domestic JVs | 0.85 | 1.30 |
| Total Domestic | 44.86 | 26.52 |
| ONGC Videsh (foreign) | 54.31 | 7.94 |
| ONGC Group | 99.17 | 34.46 |
- Reserve Replacement Ratio (2P) for domestic operations: 1.17 (FY 26).
4. Strategic Business Moves
| Initiative | Details |
|---|---|
| Petchem Trading JV | ONGC, MRPL & OPaL are forming a joint venture for petrochemical trading (pending government approval). |
| Energy Logistics JV with MOL | Two joint ventures (registered at GIFT City) for ethane shipment to OPaL; vessels to be Indian‑flagged. |
| OPaL Capital Restructuring | Exit of C2‑C3 plant from SEZ, debt renegotiation; EBITDA turned ₹ 1,207 crore (FY 26) from ₹ (203) crore (FY 25). |
| Renewable Power Projects | Awarded a 300 MW solar project (Nov 2025) for captive use; wind tender forthcoming. |
| Mega Liquid Port JV | In‑principle approval for a joint venture with Gujarat Maritime Board to develop a large liquid‑port at Dahej. |
5. Performance of Group Companies
ONGC Videsh Ltd. (Overseas Arm)
- Production: 9.671 MMTOE (FY 26) vs 10.278 MMTOE (FY 25).
- Turnover: ₹ 8,443 crore (FY 26) vs ₹ 9,160 crore (FY 25).
- PAT: ₹ 1,152 crore (FY 26) vs ₹ 428 crore (FY 25).
- Dividend: ₹ 0.50 per share (total ₹ 75 crore).
Hindustan Petroleum Corporation Ltd. (HPCL)
- Record refinery throughput: 26.04 MMT; sales volume 51.45 MMT.
- LPG sales: 9.41 MMT (5.2 % YoY).
- Gross Refinery Margin: US$ 8.79 /bbl (FY 26).
- Revenue: ₹ 4,78,543 crore; PAT: ₹ 17,175 crore.
- Dividend: Final ₹ 19.25 per share + interim ₹ 5.00 per share.
Mangalore Refinery & Petrochemicals Ltd. (MRPL)
- Throughput: 17 MMT (FY 26) vs 18.18 MMT (FY 25).
- GRM: US$ 9.22 /bbl (FY 26).
- Revenue: ₹ 1,05,155 crore; PAT: ₹ 1,931 crore (vs ₹ 51 crore FY 25).
ONGC Petro Additions Ltd. (OPaL)
- Capacity utilisation: 84 %; revenue ₹ 14,214 crore (FY 26).
- EBITDA turnaround to ₹ 1,207 crore from a loss of ₹ (203) crore (FY 25).
ONGC Green Ltd. (OGL) & ONGC‑NTPC Green JV
- OGL revenue: ₹ 298 crore (FY 26) vs ₹ 14 crore (FY 25); PAT ₹ 55 crore.
- Renewable capacity commissioned: 839 MW (total operating 3 GW, with another 1 GW pipeline).
Other Subsidiaries (selected)
- Petronet MHB Ltd. – Revenue ₹ 199.45 crore, profit ₹ 116.17 crore; interim dividend ₹ 1.93 per share (ONGC share ₹ 52.95 crore).
- ONGC Tripura Power Co. – Revenue ₹ 1,503 crore, PAT ₹ 137 crore.
- Mangalore SEZ Ltd. – Net profit ₹ 68.18 crore; long‑term borrowing reduced to ₹ 96.59 crore.
6. Awards & Recognitions
- Exploration Company of the Year – Federation of Indian Petroleum Industry, India Energy Week 2026.
- Three Maharatna & Navratna awards – 15th India Public Sector Enterprises Awards 2025.
- Three Governance Now PSU Awards – Financial Performance, Automation & Digital Technologies, Operational Excellence (FY 2024‑25).
- Certificate of Merit – Manufacturing Enterprise – Large category, 38th Jamnalal Bajaj Uchit Vyavhar Puraskar.
7. Outlook & Risk Considerations
- Dividend Policy: Final dividend of ₹ 1 per share (20 %) pending AGM approval; total FY 26 payout already at ₹ 13.25 per share.
- Production Risks: Geological surprises (e.g., 98/2 field) and geopolitical tensions (West Asia, Middle East) have caused short‑term production variances.
- Capital Expenditure: Ongoing Western Offshore projects (₹ 33,075 crore) and DUDP are expected to drive future output but entail execution risk.
- Price Environment: Decline in realized crude oil price (US$ 68.40 /bbl vs US$ 76.90 /bbl FY 25) impacted revenue; gas price volatility remains a factor.
Bottom Line for Investors
ONGC delivered a strong FY 2026 profit surge and declared a record dividend, while production remained stable amid operational challenges. The company is investing heavily in Western Offshore projects, deep‑water exploration, and renewable energy, positioning itself for longer‑term growth. However, investors should monitor execution of large‑scale projects, commodity price trends, and geopolitical developments that could affect offshore operations.
Original Source Document
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