Oil and Natural Gas (ONGC) Q3 25/26 earnings summary

Executive summary

• Standalone crude oil production in Q3 FY26 was 4.592 MMT, with nine-month output at 13.907 MMT, up 0.35% year-over-year, reflecting operational resilience and stabilization in gas production.

• Major infrastructure completions in KG-DWN-98/2 and Mumbai High Field, with new wells and platforms installed, are expected to drive production growth in FY27.

• Board declared a second interim dividend of 125% (INR 6.25/share), bringing total interim dividend to a record INR 15,411 crore for the year.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were approved and reviewed by the Board and auditors, with no material misstatements identified.

• A second interim dividend of ₹6.25 per share (125%) was declared, totaling ₹7,863 crore, in addition to the earlier interim dividend of ₹6 per share.

Financial highlights

• Consolidated net profit for Q3 FY26 rose 23% year-over-year to INR 11,946 crore; nine-month net profit reached INR 36,115 crore, up from INR 29,364 crore.

• Standalone Q3 net profit was INR 8,372 crore, up 1.6% year-over-year; nine-month standalone net profit was INR 26,244 crore, down from INR 29,162 crore.

• Standalone revenue from operations for Q3 FY26 was ₹31,546.51 crore, with net profit at ₹8,371.85 crore; for nine months, revenue was ₹96,579.96 crore and net profit ₹26,244.05 crore.

• Consolidated revenue from operations for Q3 FY26 was ₹167,422.93 crore, with net profit at ₹11,946.42 crore; for nine months, revenue was ₹488,442.13 crore and net profit ₹36,115.23 crore.

• Q3 sales revenue declined due to a INR 2,145 crore drop in crude oil revenue and INR 710 crore reduction in value-added products, partially offset by a INR 505 crore increase in natural gas revenue.

• Crude oil prices fell to $61.63/bbl in Q3 FY26 from $72.5/bbl in Q3 FY25.

• Statutory levies in Q3 FY26 were INR 5,975 crore, down 9.9% year-over-year due to lower royalty and CEPF from decreased crude prices.

• Operating expenditure in Q3 FY26 rose 9% to INR 7,151 crore, mainly due to higher LNG consumption and increased GST on oil services.

• DD&A cost decreased by 2.5% to INR 6,610 crore, aided by an impairment reversal of INR 224 crore.

• Standalone EPS for Q3 FY26 was ₹6.65; consolidated EPS was ₹7.96.

Outlook and guidance

• FY27 standalone oil and gas production targeted at 42.5 million tons (21 MMT oil, 21.5 MMT gas).

• CapEx guidance for FY27 remains at INR 32,000–33,000 crore, focused on exploration and production.

• KG 98/2 gas production expected to ramp up to 5–6 MMSCMD by end-FY27, with peak guidance at 7–8 MMSCMD.

• Daman Upside Project to contribute 4–5 MMSCMD gas in FY27.

• New Well Gas share in total gas production expected to rise from 18% to 24% in FY27.

• Cost reduction measures targeting INR 1,000 crore in annual savings.

• The company remains prepared to assume operational control of the CB-OS-02 JV block as directed by the government, pending court proceedings.

• No material financial impact is currently expected from the implementation of new labor codes effective November 2025.