Oil and Natural Gas (ONGC) Q1 25/26 earnings summary

Executive summary

• Net profit after tax for Q1 FY 2026 was INR 8,024 crore, down 10.2% year-over-year due to lower crude oil price realizations.

• Consolidated net profit rose to INR 11,554.21 crore, up 18.2% year-over-year, driven by improved subsidiary performance.

• Crude oil production increased 1.2% year-over-year to 4.683 MMT, while natural gas production remained nearly flat.

• Board approved unaudited standalone and consolidated financial results for Q1 FY26, with review by statutory auditors and audit committee recommendation.

• Investment of ₹4,963.06 crore approved for 0.6 GW renewable energy project (300MW solar, 300MW wind) to be completed by 2028, aiming for operational savings and ESG compliance.

Financial highlights

• Standalone Q1 FY26 revenue from operations: ₹32,002.89 crore (down from ₹35,266.38 crore YoY and ₹34,982.23 crore QoQ).

• Consolidated Q1 FY26 revenue from operations: ₹163,108.12 crore (down from ₹168,967.98 crore YoY, down from ₹170,811.73 crore QoQ).

• Crude oil price realization dropped to INR 66.13/bbl from INR 83.05/bbl year-over-year.

• Statutory levies decreased 37.9% to INR 6,073 crore, mainly due to the abolishment of SAED on crude oil.

• Operating expenses rose to INR 5,577 crore, up from INR 5,182 crore, driven by higher FPSO charges and LNG costs.

Outlook and guidance

• KG asset oil production at 30,000+ bbl/day and gas at 3 mmscmd, with ramp-up expected from January-February 2026.

• Peak oil target for KG 98/2 is 45,000 bbl/day and gas at 10 mmscmd, expected after living quarters installation in Q4 FY 2026.

• FY 2026–27 standalone production guidance: crude oil 21 MMT, gas 21.487 BCM.

• Renewable energy capacity to increase by 0.6 GW by 2028, supporting operational savings and ESG goals.