ONGC shares fall 2% as earnings fail to impress investors; check all Q2 numbers, updates

ONGC had reported a consolidated net profit of ₹10,785 crore in the second quarter of financial year 2024-25 (Q2 FY26), marking a growth of 5.3% from ₹10,235 crore during the same period last year.

Its revenue from operations for the quarter ended September 30, 2025, however, slipped marginally by 0.89% to ₹157,911 crore as against ₹159,331 crore in the year-ago period.

The oil explorer firm’s operating profit, also known as earnings before interest, taxes, depreciation, and amortisation (EBITDA), surged 29% to ₹26,521 crore from ₹20,586 crore in the same period of the previous fiscal year.

Margin expanded to 16.79% in the reporting quarter as compared to 12.92% year-on-year (YoY).

Along with the earnings, ONGC’s Board of Directors has also declared a first interim dividend of ₹6 per equity share of face value ₹5 each, representing a 120% payout for the financial year 2025-26.

“As informed vide letter dated 30.10.2025, Friday, the 14th of November 2025 has been fixed as the “Record Date” for determining eligibility of shareholders for payment of the 1st Interim Dividend. Dividend would be paid within 30 days from the date of declaration,” ONGC said in a regulatory filing.

The company said gas produced from new wells is eligible for a 20% premium over the domestic APM gas price. ONGC is also actively ramping up output from these wells, which generated ₹3,352 crore in revenue during H1 FY26—an additional ₹651 crore compared to what would have been earned at the standard APM price.

The standalone crude oil production (excluding condensate) during Q2 FY26 and H1 FY26 stood at 4.630 MMT and 9.314 MMT, respectively, marking a growth of 1.2% over the corresponding periods of FY25.

On the gas production front, ONGC managed to arrest the decline. The drop, which was 0.35% in Q1 FY26 compared to Q1 FY25, was reduced to just 0.04% in Q2 FY26 versus Q2 FY25.

Other approvals

Further, ONGC’s Board has also granted in-principle approval to form two identical Joint Venture Companies (JVCs) with Mitsui O.S.K. Lines Ltd (MOL), with an equal 50:50 shareholding structure. The proposal is subject to approval from the Department of Investment and Public Asset Management (DIPAM).

Through this partnership, ONGC plans to enter the ethane transportation segment using Very Large Ethane Carriers (VLECs), strengthening its presence in energy logistics and enhancing value chain integration. The Board has approved a cumulative investment of approximately ₹4,350.3 crore (up to $49.20 million), to be deployed in tranches.

Investment approvals

The company’s Board has approved an investment of up to ₹421.50 crore in ONGC Green Limited (OGL), its wholly owned subsidiary engaged primarily in the renewable energy business. The investment will be made in one or more tranches through a subscription to OGL’s rights issue of equity shares.

OGL will use the proceeds from the equity issue to invest in ONGC NTPC Green Private Limited (ONGPL), a 50:50 joint venture between OGL and NTPC Green Energy Limited (NGEL). ONGPL, in turn, will infuse the funds as equity into Ayana Renewable Power Private Limited (Ayana), which is a wholly owned subsidiary of ONGPL.

Ayana is a leading renewable energy platform with around 4.1 GW of operational and under-construction assets strategically located across resource-rich states. Its portfolio is supported by high-credit-rated off-takers such as SECI, NTPC, GUVNL, and Indian Railways.

ONGC share price

At 12:35 PM, ONGC shares were trading at ₹247.50 apiece on NSE, falling 1.55%.

Over the last five trading days, shares of the firm have lost nearly 31%, while for the six-month period, the stock has climbed 1.3%. Year-to-date, it has surged more than 4%.

The company’s market capitalisation stands at ₹3.11 lakh crore.

Shares of the firm had touched their one-year high of ₹273.50 apiece on January 8, 2025, while their 52-week low of ₹205 was hit on April 7, 2025.