ONGC shares slide 4% even as Q3 earnings come in line with estimates

ONGC's consolidated net profit rose 22.6 per cent year-on-year (Y-o-Y) to ₹11,946 crore in the third quarter of fiscal 2025-26. The firm's revenue from operations in Q3 remained flat

Shares of Oil and Natural Gas Corporation Ltd. (ONGC) fell nearly 4 per cent on Friday despite reporting an in-line performance for the third quarter (Q3-FY26), with net profit rising 22.6 per cent year on year (Y-o-Y).

 

The company's stock fell as much as 3.75 per cent during the day to ₹266 per share, the steepest decline since February 1 this year. Oil and Natural Gas Corporation stock pared losses to trade 3 per cent lower at ₹267.8 apiece, compared to a 0.9 per cent decline in Nifty50 as of 12:10 PM. 

 

Shares of the company snapped a three-day gain and currently trade at 1.1 times the average 30-day trading volume, according to Bloomberg. The counter has risen 11.6 per cent this year, compared to a 2.1 per cent decline in the benchmark Nifty index. ONGC has a total market capitalisation of ₹3.37 trillion.  READ LATEST STOCK MARKET UPDATES TODAY LIVE

ONGC Q3 results 

The company's consolidated net profit rose 22.6 per cent year-on-year (Y-o-Y) to ₹11,946 crore in the third quarter of fiscal 2025-26. The firm’s revenue from operations in Q3 remained flat from last year at ₹1.67 trillion.

 

ONGC registered growth of 0.35 per cent in crude oil production during the first nine months of FY26 while natural gas production remained flat during the period. In the first nine months, revenue from new well gas stood at ₹5,028 crore, delivering an additional ₹944 crore revenue compared to the APM gas price.

 

The company's board also declared second interim dividend of ₹6.25 per equity. The total payout would be ₹7,863 crore for the dividend. The record date for distribution of dividend has been fixed for February 18, 2026.  ALSO READ | Coal India Q3 review: Analysts split on e-auction recovery vs headwinds

Analysts on ONGC earnings 

JM Financial said ONGC reported operationally in-line results for the quarter, with crude and gas sales volumes broadly matching its estimates. However, crude and gas net realisations were lower than expected. Dry well write-offs came in higher at ₹2,050 crore, compared with JM Financial’s estimate of ₹1,200 crore. This was largely offset by higher other income and lower tax outgo during the quarter.

 

The brokerage noted that the stock is currently trading at around 7 times standalone earnings per share of ₹20.9, factoring in the first interim dividend of Rs 6 per share declared in Q2FY26. JM Financial has maintained its 'Buy' rating on the stock, with a revised target price of ₹320.

 

Motilal Oswal said the company delivered an in-line core performance for the quarter, with the earnings beat primarily driven by higher other income. The brokerage has maintained its 'Neutral' rating on the stock.

 

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