ONGC Q1 profit jumps 156% QoQ to ₹17,034 crore on higher crude prices, gas realisations

Oil and Natural Gas Corporation (ONGC) reported a sharp sequential rise in earnings for the June quarter, with standalone net profit more than doubling as higher crude oil prices and improved gas realisations boosted its top line and operating performance.

The state-run oil explorer posted a standalone net profit of ₹17,033.81 crore for the quarter ended June 30, compared with ₹6,649.97 crore in the March quarter, while revenue from operations rose 29.3% to ₹46,460.45 crore from ₹35,928.18 crore. Operational EBITDA surged to ₹28,355 crore from ₹12,666 crore in the preceding quarter, while the operating margin expanded to 61% from 35.3%.

On a year-on-year basis, net profit increased 112.3%, while standalone gross revenue rose 45.2%, aided by stronger oil and gas price realisations.

Record pre-tax profit

ONGC said it delivered its highest-ever quarterly standalone profit before tax (PBT) of ₹22,848 crore during the quarter, supported by robust crude oil and gas realisations.

Standalone gross revenue stood at ₹46,460 crore during the quarter, while crude oil realisation from nomination fields rose to $99.45 per barrel from $66.13 a year ago. New well gas prices increased to $13.31 per mmBtu from $8.24 a year earlier, helping lift revenue from new well gas to ₹3,998 crore during the quarter.

"Standalone Gross Revenue ₹46,460 crore in Q1, up by 45%, Highest ever quarterly Profit Before Tax (PBT) of ₹22,848 crore and robust Net profit of ₹17,034 crore in Q1, grows by 112%," the company said in its earnings release.

New well gas boosts earnings

The company said new well gas contributed nearly 38% of total revenue from its nomination gas portfolio during the quarter.

"During Q1 FY'27, revenue from new well gas stood at ₹3,998 crore delivering an additional ₹1,897 crore revenue compared to the APM gas price. New Well Gas now contributes ~38% of total revenue from ONGC nomination gas portfolio," it said.

Standalone crude oil production declined marginally to 4.452 million metric tonnes (MMT) from 4.683 MMT a year ago, while natural gas production slipped to 4.756 billion cubic metres (BCM) from 4.846 BCM. The company attributed the decline to reservoir complexities in the KG-98/2 block, rough sea conditions in the western offshore region, pipeline replacement work and temporary well shutdowns during commissioning of major projects.

However, ONGC said the production decline is expected to reverse as projects including the Daman Upside Development Project (DUDP), TSP and Discovered Small Fields (DSF) are commissioned.

"Oil and gas production remained flat during Q1 FY27, maintaining the momentum achieved in Western Offshore during Q4 FY26 and providing a strong foundation for future production growth," the company said.

₹40,000 crore offshore investment underway

The company said it is implementing one of its largest-ever capital investment programmes in the western offshore region, with projects worth more than ₹40,000 crore under execution to improve production performance and recovery.

"This is reflected in one of the highest ever ongoing capital investment programme in Western Offshore, with projects more than ₹40,000 crore currently under implementation. We expect their benefits to progressively materialise from FY2027-28 onwards, leading to enhanced production, improved recovery, and sustained value creation in the years ahead," ONGC said.

On the exploration front, ONGC said it declared two discoveries during the quarter—one onshore and one offshore—and spudded its first deepwater exploratory well in the Mahanadi basin under the government's 'Samudra Manthan' offshore exploration initiative.

ONGC shares ended Tuesday's session unchanged at ₹241.90 apiece on the NSE. The stock has gained over 3% during the past year, outperforming the benchmark Nifty 50 index, which has slipped about 0.5% over the same period.