Mumbai: Oil and Natural Gas Corporation (ONGC) reported a 23% year-on-year (YoY) jump in consolidated net profit to ₹11,946 crore for the December 2025 quarter (Q3 FY26), supported by higher gas realisations, stable production, and strong offshore performance.
The board declared a second interim dividend of ₹6.25 per share (125%), taking the cumulative FY26 interim dividend to ₹12.25 per share (245%), amounting to a record payout of ₹15,411 crore. The record date is February 18, 2026.
Q3 FY26 Financial Highlights
Consolidated Performance
- Net Profit: ₹11,946 crore vs ₹9,747 crore (↑23% YoY)
- Sequential Growth: ↑6% from ₹11,268 crore (Q2 FY26)
- Gross Revenue: ₹1,67,423 crore vs ₹1,67,213 crore (Flat YoY)
- PAT Margin: 7.1% vs 5.8%
Standalone Performance
- Net Profit: ₹8,372 crore vs ₹8,240 crore (↑1.6%)
- Gross Revenue: ₹31,546 crore vs ₹33,717 crore (↓6.4%)
- Standalone PAT Margin: 26.5% vs 24.4%
Profitability remained resilient despite a sharp fall in crude oil realisations.
Realisation Trends: Crude Prices Decline 15%
- Crude Oil Realisation (Nominated): $61.63/bbl vs $72.57/bbl (↓15%)
- Gas Realisation (New Well Gas): $8.00/mmbtu vs $8.92/mmbtu
- APM Gas Price: $6.59/mmbtu vs $6.50/mmbtu
Despite lower crude prices, ONGC protected margins through cost optimisation and higher contribution from premium-priced New Well Gas.
Nine-Month FY26 Performance (April–December 2025)
- Consolidated Net Profit: ₹36,115 crore vs ₹29,364 crore (↑23%)
- Standalone Net Profit: ₹26,244 crore vs ₹29,162 crore (↓10%)
- Consolidated Revenue: ₹4,88,442 crore (↓1.4%)
- Standalone Revenue: ₹96,579 crore (↓6.1%)
Lower crude realisations and higher expenses weighed on standalone profitability for the nine-month period.
Record Dividend Payout – Highest in ONGC’s History
Oil and Natural Gas Corporation has declared its highest-ever cumulative interim dividend in FY26, reflecting strong cash flows and shareholder returns. The details are as follows:
- 1st Interim Dividend: ₹6.00 per share (120%) – Total payout of ₹7,548 crore
- 2nd Interim Dividend: ₹6.25 per share (125%) – Total payout of ₹7,863 crore
- Total FY26 Interim Dividend (So Far): ₹12.25 per share (245%) – Cumulative payout of ₹15,411 crore
This marks the highest cumulative interim dividend declared by ONGC in any financial year.
Production Update: Stability with Signs of Growth
Crude Oil Production (Standalone)
- Q3 FY26: 4.592 MMT (↓1.3%)
- 9M FY26: 13.907 MMT (↑0.35%)
The 9M growth reflects the success of redevelopment initiatives at Mumbai High.
Natural Gas Production (Standalone)
- Q3 FY26: 4.988 BCM (↑0.2%)
- 9M FY26: 14.751 BCM (Flat)
New Well Gas Boosts Revenue
Revenue from New Well Gas stood at ₹5,028 crore in 9M FY26, generating an additional ₹944 crore compared to APM pricing.
New Well Gas now contributes over 18% of total gas sales revenue, significantly improving realisations.
Major Project Updates
KG-DWN-98/2 (KG-98/2) Project
The eastern offshore KG-98/2 project is nearing commissioning and is expected to add 6–7 MMSCMD of gas production from FY27, strengthening ONGC’s production profile.
Daman Upside Development
Gas production start is expected in Q4 FY26.
Mumbai High Redevelopment
Ongoing initiatives are showing encouraging results, contributing to crude production growth after multiple quarters of decline.
Strategic Developments
- Ethane Supply Agreement: Long-term Unloading, Storage & Handling agreement signed with Petronet LNG Ltd for 15 years from Q4 2028.
- VLEC Shipbuilding Contracts: ONGC JV firms signed agreements with Samsung Heavy Industries for two Very Large Ethane Carriers.
- Renewable Push: ONGC Green Limited recognised for energy transition leadership.
Exploration & Recognition
- Monetised discoveries in Gujarat and Tripura.
- Ultra-deepwater Andaman Basin stratigraphic well spudded in January 2026.
- Awarded “Exploration Company of the Year” at India Energy Week 2026.
Outlook for FY26
- Standalone crude oil production target: 18.5 MMT
- KG-98/2 commissioning expected in Q1 FY27
- Focus on cost control amid crude price volatility
- Renewable capacity expansion underway
Stock Performance
ONGC shares closed at ₹298.75 on NSE, up 2.3%. The stock has gained 18% in the past six months.
About ONGC
Oil and Natural Gas Corporation is India’s flagship upstream energy major and a Maharatna PSU, contributing over 70% of domestic crude oil production and more than 80% of natural gas output. The company is engaged in exploration, development, and production of hydrocarbons and is expanding into renewable energy through ONGC Green Limited, aligning with India’s long-term energy security and net-zero goals.
Read also: GAIL India and ONGC Sign Strategic MoU to Jointly Explore Domestic Oil and Gas Projects
