ONGC stock rises 2% following Q1 result; here is how company fared

Shares of Oil & Natural Gas Corporation (ONGC) rallied 1.88% to an intra-day high of ₹239.95 apiece on the National Stock Exchange (NSE) on Wednesday, August, a day after the PSU posted its June quarter results for the 2025-26 fiscal year (Q1FY26).

The Maharatna company reported a 10.2% year-on-year (YoY) decline in its standalone net profit to ₹8,024 crore during the quarter under review, compared to ₹8,938 crore in the first quarter of the previous fiscal year (Q1FY25).

The fall in profit comes on the back of lower oil prices and stagnant production from its aging fields.

Price of natural gas, which is used to generate electricity, produce fertiliser, or turned into CNG and piped cooking gas, marginally rose to $6.64 per million British thermal units in Q1 from $6.5 in the last year.

ONGC said gas from new wells it drills is eligible for a 20% premium over the government-set price, called APM.

"ONGC is actively working to boost output from such wells. In Q1 of 2025-26 (FY’26), revenue from new well gas stood at ₹1,703 crore, delivering an additional ₹333 crore compared to the APM gas price," the statement said.

The oil producer’s revenue from operations stood at ₹32,003 crore in the first quarter of FY26, marking a 9.3% YoY decline from ₹35,266 crore in the same period a year earlier, it said in a regulatory filing.

At an operational level, its EBITDA (earnings before interest, tax, depreciation and amortisation), also known as operational profit, slipped 2% YoY to ₹18,657 crore during the reporting period.

During Q1FY26, its standalone crude oil production surged 1.2% YoY to 4.68 million metric tons (MMT), as against 4.63 MMT in the June FY25 quarter. Its natural gas production remained stable at around 4.8 billion cubic metres (BCM) YoY.

Key highlights

During the quarter, the firm made two discoveries of hydrocarbons in the Mumbai offshore.

It commenced production from the PY-3 field -- a joint venture of ONGC, Hardy Exploration & Production (India) Inc., and Invenire Petrodyne Ltd located offshore in the Cauvery Basin on the east coast of India. The field is producing 4,000 barrels of oil per day and 88,000 standard cubic meters a day of gas.

"ONGC commenced the supply of treated natural gas from its newly established gas treatment facility at Palatana, Tripura, on June 9, 2025. The gas is being supplied to the city gas distribution (CGD) network in the Gomati through GAIL, enhancing the region's access to cleaner fuel," the statement said.

The firm said it has got special dispensation from the Ministry of Petroleum and Natural Gas for selling gas to Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RRVUNL) at $6.5 per mmBtu from Jodhpur. RRVUNL conveyed their consent for the offtake of around 0.1 million standard cubic meters per day of gas using the existing GAIL gas pipeline.

ONGC and its overseas subsidiary, ONGC Videsh, signed an MOU for coordinated marketing functions. "This MoU is the first step towards enhancing operational synergy and optimizing marketing efficiencies for ONGC and its group companies."

ONGC-Oil India consortium ink pact for joint operations of three blocks

Besides reporting its first-quarter results, the firm also announced that it has inked a Joint Operations Agreement (JOA) with Oil India for three blocks located in Meghalaya’s Assam Basin, Gujarat’s Cambay Basin, and off the eastern coast in the Mahanadi Basin.

The JOA was awarded to the consortium under the Open Acreage Licensing Policy (OALP) in the ninth bid round, ONGC said in a separate filing on Tuesday.

The consortium, with ONGC designated as the operator, will undertake exploratory activities aimed at assessing and harnessing the hydrocarbon potential of these Indian sedimentary basins.

The three blocks, comprising two on-land blocks and one ultra-deepwater block, measure a total area of approximately 10,964 square kilometres.

The agreement was signed by the two companies on August 12, 2025, in New Delhi.

“This agreement marks a significant milestone in collaborative energy exploration and reflects the consortium’s shared commitment to advancing India’s energy security and contributing to the nation’s long-term energy goals,” ONGC said.

Shares of ONGC were trading 1.64% higher at ₹239.39 apiece at around 12:57 pm.

The Maharatna firm has a total market capitalisation of ₹3.01 lakh crore, as of August 13, 2025, as per data on the NSE.