New Delhi: Oil and Natural Gas Corporation (ONGC), India’s largest state-owned oil and gas producer, has reported a blockbuster financial performance for the fourth quarter and full financial year FY26. The energy major posted a sharp rise in consolidated net profit, announced its highest-ever dividend payout, and highlighted major operational gains from its partnership with BP in the Mumbai High offshore field.
The strong earnings, combined with aggressive expansion plans and production revival strategies, have strengthened investor confidence in ONGC’s long-term growth story.
ONGC Q4 FY26 Results: Consolidated Net Profit Surges 53%
ONGC delivered a stellar performance in the March quarter, driven by improved subsidiary earnings, operational efficiency, and better gas monetization.
Key Financial Highlights
- Q4 FY26 Consolidated Net Profit: ₹13,678 crore
(up 52.6% from ₹8,965 crore in Q4 FY25) - FY26 Consolidated Net Profit: ₹49,793 crore
(up 29.9% from ₹38,329 crore in FY25) - Q4 FY26 Standalone Net Profit: ₹6,650 crore
(up 3.1% year-on-year) - Q4 Gross Revenue: ₹1,73,805 crore
Operational revenue also improved marginally during the quarter:
- Revenue from Operations: ₹35,928.18 crore
(vs ₹34,982.23 crore in Q4 FY25)
Despite the strong quarterly numbers, ONGC’s standalone annual profit faced pressure due to higher exploratory expenses.
- FY26 Standalone Net Profit: ₹32,894.02 crore
(down 7.6% from ₹35,610.32 crore in FY25)
ONGC Declares Highest-Ever Dividend Payout
In a major boost for shareholders, ONGC’s Board recommended a final dividend of Re 1 per share (20%) for FY26.
Including the interim dividend already paid earlier in the fiscal year, the company’s total dividend payout stands at ₹13.25 per share (265%).
Dividend Highlights
- Total Dividend Payout: ₹16,669 crore
- Payout Ratio: Around 51%
- Highest Absolute Dividend in ONGC History
The announcement is expected to attract dividend-focused investors looking for strong returns from PSU energy stocks.
BP Partnership Revives Mumbai High Oil & Gas Production
ONGC’s operational turnaround strategy is showing encouraging results after onboarding BP as a Technical Service Provider (TSP) for the iconic Mumbai High field.
Production Performance at Mumbai High
- Oil production reached 102% of target baseline
- Gas production achieved 108% of target baseline
Encouraged by the early success, ONGC plans to expand BP’s role across the entire Western Offshore region.
The company also confirmed that the Daman Upside Development Project, a mega offshore gas initiative, has started monetization in record time and is expected to increase ONGC’s gas production by nearly 9%.
ONGC Launches Project DeepX for Deepwater Exploration
To accelerate future hydrocarbon discoveries, ONGC has launched a specialized exploration initiative called Project DeepX under the “Samudra Manthan” strategy.
Exploration & Reserve Highlights
- Four exploratory wells being drilled in the ultradeep Andaman Basin
- Addition of 44.86 MMTOE domestic reserves
- Strong Reserve Replacement Ratio (2P) of 1.17
The company aims to double deepwater drilling activity over the next two years to strengthen India’s energy security.
HPCL, MRPL and OPaL Deliver Strong Earnings Growth
ONGC subsidiaries played a major role in boosting consolidated profitability during FY26.
Hindustan Petroleum Corporation Limited (HPCL)
- Standalone PAT surged to ₹17,175 crore
- Previous year PAT: ₹7,365 crore
- Highest-ever crude throughput of 26.04 MMT
Mangalore Refinery and Petrochemicals Limited (MRPL)
- PAT jumped to ₹1,931 crore
- Previous year PAT: ₹51 crore
- Gross Refining Margin (GRM): $9.22 per barrel
ONGC Petro additions Limited (OPaL)
- EBITDA improved to ₹1,207 crore
- Compared to a loss of ₹203 crore last year
New Well Gas Pricing Boosts Revenue
ONGC highlighted the growing contribution of premium-priced new well gas to overall earnings.
Gas Pricing Highlights
- APM Gas Price: $6.40 per mmbtu
- New Well Gas Price: $7.71 per mmbtu
Although new well gas contributes only 17% of total production, it now generates around 21% of ONGC’s nomination gas revenue portfolio.
This pricing advantage helped the company earn an additional ₹1,223 crore compared to standard APM pricing.
Exploration Costs Continue to Impact Standalone Earnings
ONGC’s quarterly profitability was partly impacted by higher exploration write-offs.
Exploration Expenses
- Q4 FY26 exploratory well cost write-off: ₹4,876.75 crore
- Q4 FY25 write-off: ₹4,173.04 crore
Full-Year Exploration Write-Offs
- FY26: ₹8,235.98 crore
- FY25: ₹7,479.96 crore
The expenses arose from exploratory wells that did not yield commercially viable hydrocarbon discoveries.
ONGC Outlook: Massive Offshore Investments to Drive Future Growth
ONGC currently has offshore projects worth ₹33,075 crore under development in the Western Offshore region — one of the largest investment cycles in recent years.
The company has also hired multiple global technical experts to resolve reservoir challenges in the KG Basin and improve production efficiency.
With rising gas monetization, stronger subsidiary earnings, and aggressive offshore expansion plans, ONGC appears well-positioned for sustained long-term growth.
About ONGC
Oil and Natural Gas Corporation (ONGC) is India’s largest crude oil and natural gas exploration and production company. Established in 1956, the Maharatna PSU contributes significantly to India’s domestic energy production and operates across upstream, downstream, refining, petrochemicals, and overseas energy assets through its subsidiaries, including HPCL, MRPL, OVL, and OPaL. The company plays a crucial role in strengthening India’s energy security and reducing dependence on imported hydrocarbons.
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