NEW DELHI — Oil and Natural Gas Corporation (ONGC) reported a resilient set of third-quarter results for fiscal year 2025–26, delivering higher profits and increased shareholder payouts despite a sharp decline in global crude oil prices.
The state-run energy major posted a 22.6% year-over-year jump in consolidated net profit to ₹11,946 crore, compared with ₹9,747 crore in Q3 FY25. Standalone net profit rose modestly by 1.6% to ₹8,372 crore, underscoring margin stability even as revenue faced pricing pressure.
Lower Prices, Higher Profits
The quarter was marked by a significant drop in crude price realizations. ONGC’s nominated crude oil realization fell 15% to $61.63 per barrel from $72.57 per barrel a year earlier. Joint venture crude prices also declined by over 13%.
Standalone gross revenue declined 6.4% year-over-year to ₹31,546 crore due to weaker realizations. However, consolidated revenue remained largely flat at ₹1.67 lakh crore, reflecting improved performance from subsidiaries such as Hindustan Petroleum Corporation Limited, Mangalore Refinery and Petrochemicals Limited, and ONGC Petro additions Limited.
The strong subsidiary performance played a major role in boosting consolidated earnings.
Production Stability Offsets Pricing Pressure
While crude oil production saw a marginal 1.3% decline to 4.592 million metric tonnes, natural gas output edged up 0.2% to 4.988 billion cubic meters. For the first nine months of FY26, crude output registered modest growth of 0.35%, signaling stabilization after years of decline.
The company’s strategic focus on high-value “new well gas” emerged as a key driver. Revenue from new well gas in the first nine months nearly doubled year-over-year to ₹5,028 crore, raising its share in total gas sales revenue to over 18%.
Dividend Boost for Shareholders
ONGC declared a Q3 interim dividend of ₹6.25 per share (125%), up 25% from ₹5.00 per share in the same quarter last year.
For the first nine months of FY26, cumulative interim dividends reached ₹12.25 per share, marking the highest-ever nine-month interim payout in the company’s history. Total dividend outgo during the period rose 11.4% to ₹15,411 crore.
Project Execution Gains Momentum
Several key upstream projects advanced during the quarter:
- The KG-DWN-98/2 deepwater project in the Krishna-Godavari Basin moved closer to full potential.
- Enhanced recovery initiatives continued at Mumbai High.
- The Daman Upside Development project neared gas production start.
- ONGC spudded India’s first ultra-deepwater stratigraphic well in the Andaman region in January 2026.
Strategic Shift Paying Off
The Q3 comparison highlights ONGC’s evolving resilience. Despite a roughly 15% decline in crude price realizations, the company preserved standalone margins, strengthened consolidated profitability, increased gas output, and delivered record interim dividends.
Analysts note that ONGC’s diversification toward gas production, operational efficiencies, and improved subsidiary performance demonstrate a more balanced and less price-sensitive business model compared to previous cycles.
The results signal that ONGC is successfully navigating commodity volatility while sustaining growth and shareholder returns.