Oil and Natural Gas (ONGC) Q4 25/26 earnings summary

Executive summary

• Consolidated Q4 FY26 profit after tax (PAT) was INR 3,678 crore, down 53% year-over-year, but annual consolidated PAT rose 30% to INR 49,793 crore, driven by strong subsidiary performance.

• Standalone Q4 FY26 PAT increased 3% quarter-on-quarter to INR 6,650 crore, but annual standalone PAT declined to INR 32,894 crore due to lower crude realization.

• Audited standalone and consolidated financial results for FY ended March 31, 2026, were approved, with unmodified opinions from auditors.

• Board recommended a final dividend of 20% (INR 1/share), with total FY26 payout at a record INR 16,669 crore; interim dividends of ₹6 and ₹6.25 per share were paid earlier.

• In-principle approval for a 50:50 JV with Gujarat Maritime Board for a 5 MMTPA liquid port at Dahej.

Financial highlights

• Standalone revenue from operations for FY26: ₹132,508.14 crore (down from ₹137,846.29 crore YoY); consolidated revenue: ₹662,247.32 crore (slightly down from ₹663,260.58 crore YoY).

• Standalone net profit for FY26: ₹32,894.02 crore (down from ₹35,610.32 crore YoY); consolidated net profit for FY26: ₹49,793.10 crore (up from ₹38,328.61 crore YoY).

• Statutory levies decreased by 15.6% to INR 26,148 crore, mainly due to lower crude realization and abolition of SAED.

• Other expenses rose by INR 6,627 crore in FY26, including one-off provisions and higher exchange losses from rupee depreciation.

• Standalone crude oil production was 18.355 MMT (FY26), slightly down from 18.558 MMT (FY25); standalone gas production was 19.533 BCM, marginally lower than 19.654 BCM.

Outlook and guidance

• Gas production is expected to grow 7-8% annually, with new projects (DUDP, DSF) coming online and a shift toward higher-priced new well gas.

• Peak production from Daman project expected by FY27, with DSF contributing from FY28.

• CapEx for E&P to remain around INR 31,000-33,000 crore annually, with potential increases if government support materializes.

• Mozambique Area 1 project expected to commence production in July 2028 after lifting of force majeure.

• Focus on expanding renewable energy portfolio to 3 GW by next year.