New Delhi: Oil and Natural Gas Corporation (ONGC) reported a 23 percent year-on-year rise in consolidated net profit for the third quarter of FY26, even as its standalone upstream business remained under pressure from lower crude oil realisations. Consolidated net profit stood at Rs 11,946 crore in Q3 FY26 compared with Rs 9,747 crore in Q3 FY25. Gross revenue was largely flat at Rs 1,67,423 crore versus Rs 1,67,213 crore a year earlier.
The Board declared a second interim dividend of 125 percent (Rs 6.25 per share), taking cumulative FY26 interim dividend to 245 percent, aggregating to Rs 15,411 crore so far this year.
The 23 percent rise in consolidated Q3 profit came despite revenue growth of just 0.13 percent year-on-year, indicating margin expansion at the group level. For the nine months ended December 31, 2025, consolidated net profit rose 22.99 percent to Rs 36,115 crore from Rs 29,364 crore in the corresponding period last year. However, nine-month gross revenue declined 1.43 percent to Rs 4,88,442 crore from Rs 4,95,512 crore.
Net profit attributable to owners stood at Rs 10,016 crore in Q3 FY26, up 16.67 percent year-on-year, and Rs 30,605 crore for nine months, up 6.29 percent. The divergence between modest revenue movement and strong profit growth suggests improved cost efficiencies and better contribution from subsidiaries and joint ventures.
On a standalone basis, ONGC’s core upstream business reflected crude price pressure as Q3 standalone gross revenue declined 6.4 percent year-on-year to Rs 31,546 crore from Rs 33,717 crore. Net profit rose marginally by 1.6 percent to Rs 8,372 crore from Rs 8,240 crore.
For nine months, standalone revenue declined 6.1 percent to Rs 96,579 crore from Rs 1,02,864 crore, while net profit fell 10 percent to Rs 26,244 crore from Rs 29,162 crore. The primary driver was crude oil realisation.
Nominated crude realisation averaged USD 61.63 per barrel in Q3 FY26, down 15.08 percent from USD 72.57 per barrel in Q3 FY25. For nine months, realisation averaged USD 65 per barrel versus USD 77.98 per barrel a year earlier, a 16.65 percent decline.
Realisation in rupee terms fell 10.36 percent in Q3 and 13.21 percent over nine months. JV crude realisation followed a similar trend, declining 13.22 percent in Q3 and 13.35 percent over nine months. It is important to note that volume stability did not offset pricing weakness, leading to profit compression at the standalone level over nine months.
Crude oil production (standalone) rose 0.35 percent to 13.907 MMT during nine months FY26 compared with 13.858 MMT in the previous year, while Q3 production stood at 4.592 MMT versus 4.653 MMT last year. Natural gas production in Q3 rose slightly to 4.988 BCM from 4.978 BCM. However, nine-month gas output remained broadly flat at 14.751 BCM versus 14.761 BCM last year.
While output stability supports operational consistency, earnings sensitivity remains tied to crude pricing rather than production growth.
Nomination gas price averaged USD 6.59 per mmbtu in Q3 FY26, marginally higher than USD 6.50 a year earlier. Over nine months, nomination gas price rose 2.46 percent to USD 6.66 per mmbtu. New Well Gas price averaged USD 8.00 per mmbtu in Q3, down from USD 8.92 a year earlier. Nine-month average was USD 8.20 per mmbtu versus USD 9.05 last year.
Revenue from New Well Gas during nine months FY26 stood at Rs 5,028 crore, delivering an additional Rs 944 crore compared to APM pricing. It now contributes more than 18 percent of total gas sales revenue, said ONGC.
This diversification within the gas portfolio partially mitigates crude volatility but remains secondary to oil revenue.
Three key themes emerge from these results: First, consolidated profitability is growing despite flat or marginally declining revenue, reflecting improved cost discipline and subsidiary contributions. Second, standalone upstream earnings remain highly sensitive to crude realisations. A 15–16 percent fall in dollar realisations translated into a 10 percent decline in nine-month standalone profit despite stable production.
Third, ONGC’s earnings resilience increasingly rests on integration and portfolio diversification rather than production growth alone. For investors, the key variable remains crude oil realisation. Production stability provides a base, but pricing continues to define earnings trajectory.
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