ONGC Q1 results: Net profit jumps 112% to ₹17,034 cr, revenue up 45.2%

The upstream company's revenue from operations rose 45.2 per cent YoY to Rs 46,460 crore in Q1

State-run Oil and Natural Gas Corporation (ONGC) Ltd reported a 112 per cent year-on-year (YoY) increase in standalone net profit to ₹17,034 crore in the first quarter of fiscal 2026-27 (FY27).

 

The upstream company’s revenue from operations rose 45.2 per cent YoY to ₹46,460 crore in Q1. During the quarter, revenue from new well gas stood at ₹3,998 crore, delivering an additional ₹1,897 crore in revenue compared with the administered price mechanism (APM) gas price. New well gas now contributes around 38 per cent of total revenue from ONGC’s nomination gas portfolio.

 

ONGC’s consolidated net profit fell 43.3 per cent in the quarter on account of Hindustan Petroleum Corporation Ltd’s (HPCL’s) consolidated net loss of ₹12,265 crore due to under-recoveries on petroleum products arising from the sharp increase in crude oil prices following the West Asia crisis.

 

 

However, the strong performance of other subsidiaries, including ONGC Videsh and Mangalore Refinery and Petrochemicals Ltd (MRPL), provided a positive contribution to the company's overall financial performance, the company said.

 

ONGC's crude oil price realisation improved sharply during the quarter, aided by higher global crude oil prices. Net crude oil realisation rose 50.4 per cent year-on-year to $99.45 per barrel from $66.13 per barrel a year ago. Realisation from crude produced through joint ventures also increased 52.3 per cent to $103.34 per barrel, compared with $67.87 per barrel in the corresponding quarter last year. Meanwhile, ONGC's APM nomination gas price increased 5.4 per cent to $7 per mmBtu from $6.64 per mmBtu, while realisation from new well gas surged 61.5 per cent to $13.31 per mmBtu from $8.24 per mmBtu.

 

ONGC’s crude oil production fell 5.5 per cent YoY to 4.95 million tonnes (mt) in Q1, while natural gas output fell 2 per cent to 4.851 billion cubic metres (bcm). The lower output was on account of complexities in reservoir behaviour in the Krishna-Godavari block (KG-98/2) in the Eastern Offshore, inclement swells in the Western Offshore in April and May before the onset of the monsoon, resulting in delays in the pipeline replacement project, and temporary closure of wells during pre-commissioning activities for some projects, ONGC said.

 

The production decline trend is expected to be arrested and progressively reversed through the successful execution of strategic projects, it added.

 

During the quarter, ONGC declared two discoveries (one onshore and one offshore) in its operated acreages. The company also described the approval of the National Offshore Exploration Scheme, Samudra Manthan, as a transformative step towards unlocking India's offshore energy potential and strengthening India’s long-term energy security.

 

ONGC said it has commenced drilling an exploratory well in the Mahanadi deepwater basin under its Samudra Manthan campaign, targeting a shallower Pliocene channel near the Utkal and Konark discoveries. The well, MNDWO181HDB-1 (MN-DW18-1-H-D), was spudded on July 25 in OALP block MN-DWHP-2018/1, located at a water depth of about 765 metres.