New Delhi: Oil and Natural Gas Corporation (ONGC) reported a 17.8 percent decline in standalone net profit to Rs 9,848 crore for the July–September quarter (Q2 FY26) compared to Rs 11,984 crore a year earlier, as lower crude oil realisation offset modest output gains. The company’s gross revenue fell 2.5 percent year-on-year to Rs 33,031 crore.
Crude oil realisation from nominated fields dropped 14 percent to USD 67.34 per barrel, from USD 78.33 per barrel in Q2 FY25. On a rupee basis, realisation stood at Rs 5,876 per barrel, compared to Rs 6,561 a year earlier. Similarly, joint venture (JV) oil realisation averaged USD 68.35 per barrel, down 12.3 percent year-on-year.
Natural gas prices for nomination fields averaged USD 6.75 per mmbtu, while new well gas (NWG) fetched USD 8.36 per mmbtu, eligible for a 20 percent premium over the administered price. During the first half of FY26, revenue from new well gas stood at Rs 3,352 crore, contributing an additional Rs 651 crore over the APM-linked price.
“Gas from new wells is eligible for a 20 percent premium over the domestic APM gas price. ONGC is actively working to boost output from such wells,” the company said. The share of new well gas crossed 21 percent of total gas revenue from nomination fields in H1 FY26, it added.
On a consolidated basis, ONGC’s net profit rose 28.2 percent to Rs 12,615 crore in Q2 FY26 from Rs 9,841 crore a year earlier, supported by steady performance across subsidiaries such as ONGC Videsh and MRPL. Consolidated gross revenue was largely flat at Rs 1,57,911 crore.
The company said its integrated structure and downstream presence “cushioned the impact of softer crude prices” during the quarter, while earnings from gas and petrochemicals remained stable.
Standalone crude oil production (excluding condensate) rose 1.2 percent year-on-year to 4.63 million metric tonnes (MMT) in Q2 FY26, reflecting the company’s ongoing efforts to reverse its declining production trend. For the first half of the fiscal, output stood at 9.31 MMT, compared to 9.20 MMT in H1 FY25.
On the gas side, ONGC nearly halted the decline, with production down only 0.04 percent in Q2 compared to a 0.35 percent fall in Q1 FY26.
The company also announced two new hydrocarbon discoveries—‘Vajramani’ and MBS202HAA-1—during H1 FY26 and said it is aligning its deepwater exploration campaign with the government’s ‘Samudra Manthan’ mission.
ONGC’s Board declared an interim dividend of 120 percent (Rs 6 per share on a face value of Rs 5) for FY26, amounting to a total payout of Rs 7,548 crore. The record date has been set for November 14, 2025.
The company also approved an investment of up to Rs 421.5 crore in ONGC Green Ltd (OGL), its renewable energy subsidiary, through a rights issue. OGL will use the proceeds to invest in ONGC NTPC Green Pvt Ltd, which will infuse equity into Ayana Renewable Power Pvt Ltd, a renewable platform with 4.1 GW of operational and under-construction capacity.
In a bid to expand its value chain, ONGC has signed multiple agreements, including a Heads of Agreement with Japan’s Mitsui OSK Lines Ltd to form two joint ventures for owning Very Large Ethane Carriers (VLECs). These will transport ethane from the US to India for ONGC Petro Additions Ltd (OPaL) starting 2028.
It has also inked an MoU with Vedanta Ltd for the early monetisation of the Jantapathar Gas Field in Assam and signed a co-development pact with JSW Steel Ltd for resource operations in the Jharia CBM Block.
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