Oil and Natural Gas Corporation Q1 FY27 results: net profit down 43.3% to ₹6,554 crore, revenue up 25.7%

How did Oil and Natural Gas Corporation perform in Q1 FY27?

Oil and Natural Gas Corporation reported consolidated revenue of ₹2,04,987 crore for Q1 FY27, up 25.7% from ₹1,63,108 crore in Q1 FY26 and 17.9% from ₹1,73,805 crore in Q4 FY26. EBITDA was ₹15,485 crore, down 40.2% year on year and 38.9% sequentially, while the EBITDA margin fell to 7.6% from 15.9% and 14.6%, respectively.

Consolidated net profit was ₹6,554 crore, down 43.3% from ₹11,554 crore in Q1 FY26 and 52.1% from ₹13,678 crore in Q4 FY26. Profit attributable to owners rose to ₹11,899 crore from ₹9,804 crore a year earlier and ₹10,820 crore in the previous quarter; basic EPS was ₹9.46, compared with ₹7.79 and ₹8.6.

On a standalone basis, revenue was ₹46,460 crore and net profit was ₹17,034 crore. The company said the consolidated profit after tax was affected by HPCL’s consolidated net loss of ₹12,265 crore, attributed mainly to under-recoveries on petroleum products after crude oil prices rose following the West Asia crisis.

What changed in Oil and Natural Gas Corporation's costs and profit?

Total expenses increased by ₹51,907 crore from Q1 FY26 to ₹2,01,833 crore, led by cost of materials, which rose ₹41,971 crore to ₹87,761 crore. Other expenses fell ₹471 crore to ₹32,879 crore, employee cost fell ₹228.35 crore to ₹1,660 crore, finance costs fell ₹487.63 crore to ₹2,854 crore, and depreciation rose ₹93.39 crore to ₹9,477 crore.

Other income increased by ₹215.35 crore to ₹2,789 crore from ₹2,573 crore in Q1 FY26. The quarter included an exceptional gain of ₹471.76 crore, against an exceptional charge of ₹18.56 crore in the year-ago quarter; tax expense fell ₹3,496 crore to ₹458.01 crore. Despite these movements, EBITDA fell ₹10,422 crore and PBT declined ₹9,322 crore to ₹6,415 crore.

The company attributed HPCL’s consolidated net loss of ₹12,265 crore mainly to under-recoveries on petroleum products arising from the sharp increase in crude oil prices following the West Asia crisis. It also said performance from other subsidiaries, including ONGC Videsh and MRPL, made a positive contribution to the group.

How has Oil and Natural Gas Corporation done over the last 8 quarters?

Revenue rose year on year in each of the last three quarters. It increased from ₹1,57,911.08 crore in Q2 FY26 to ₹1,67,422.93 crore in Q3 FY26 and ₹1,73,805.19 crore in Q4 FY26, before reaching ₹2,04,987.35 crore in Q1 FY27, the highest point in the reported series.

Profit and margin moved in the opposite direction to revenue in the latest quarter. Net profit was ₹13,677.87 crore in Q4 FY26 before falling to ₹6,554.44 crore in Q1 FY27, while the EBITDA margin declined from 14.6% to 7.6%. The margin had reached 16.8% in Q2 FY26, while net profit had bottomed at ₹8,856.33 crore in Q4 FY25.

Which businesses drove the quarter?

In India exploration and production, offshore revenue was ₹33,337.24 crore and EBIT was ₹19,297.87 crore, with an EBIT margin of 57.9%. Onshore revenue was ₹13,072.91 crore and EBIT was ₹4,077.53 crore, with an EBIT margin of 31.2%. Year-ago revenue and EBIT figures were not provided for these segments.

Refining and marketing in India reported revenue of ₹1,86,884.38 crore and EBIT of ₹-16,154.95 crore, with an EBIT margin of -8.6%. Petrochemicals reported revenue of ₹3,857.87 crore and EBIT of ₹-453.76 crore, with an EBIT margin of -11.8%. Year-ago figures were not provided for these segments.

Outside India, revenue rose 57.9% to ₹3,346.2 crore from ₹2,119.66 crore, while EBIT rose to ₹1,032.75 crore from ₹478.57 crore; the EBIT margin was 30.9%. Others Unallocated reported revenue of ₹147.3 crore, up 1.1%, and EBIT of ₹597.89 crore, with an EBIT margin of 405.9%.

What did the auditors point out?

The auditors said nothing had come to their attention that caused them to believe the unaudited standalone financial statements had failed to disclose information required under Regulations 33 and 52 of the Listing Regulations or contained a material misstatement. They also stated that a review is substantially less in scope than an audit and does not provide the assurance that an audit would provide.

The auditors included an emphasis of matter because the Audit Committee could not be reconstituted by 4 August 2026 due to the non-availability of independent directors, so the committee meeting could not be held. Other matters included the pending finality of an Arbitration Tribunal Award concerning the Panna Mukta and Mid and South Tapti contract areas, with a demand of USD 1,624.05 million equivalent to ₹15,365 Crore as on 30 June 2026.

The emphasis of matter also covered disputed Service Tax and GST demands on royalty, a ₹2,088 Crore Terminal Excise Duty refund considered recoverable, and the CB-OS/2 dispute. The auditors said the ultimate outcome of the CB-OS/2 litigation and its consequential impact could not presently be determined, and the company accounted for its interest as an unincorporated joint venture until 30 June 2026.

What did Oil and Natural Gas Corporation's management say?

The earnings-call filing dated 12 August 2026 only stated that the analyst and investor call transcript had been uploaded to the company’s website. The available transcript contains no management remarks, guidance, priorities, risks or analyst questions, so no specific statements can be attributed to management from that document.

The company’s 4 August press release said oil and gas production remained flat during Q1 FY27. It attributed the year-on-year production decline to reservoir complexities at KG-98/2, inclement swell in Western Offshore during April and May 2026 causing PRP-8 and PRP-9 delays, temporary well closures during pre-commissioning and commissioning, and lower gas offtake from small isolated fields because of customer-facility disruptions.

The company said the production decline was expected to be arrested and progressively reversed through DUDP, TSP and DSF. It expected benefits from projects worth more than ₹40,000 crore in Western Offshore to materialise progressively from FY 2027-28 onwards, and said bp had been engaged as TSP for the entire Western Offshore portfolio.

How did Oil and Natural Gas Corporation shares react?

The filing appeared after market hours. From the price when it appeared, the stock fell 1.6% after 5 minutes, 1.6% after 15 minutes and 1.5% after 30 minutes. On the reaction day, it closed 1.0% below the previous close of ₹241.9, at a base price of ₹245.0.

By the next day’s close, the stock was down 1.7% from its pre-results close, and by the fifth session it was down 1.0%. The industry median moved down 0.8% on the reaction day and the next day, then rose 2.1% over five days; ONGC therefore lagged the industry median by 0.2 percentage points on the reaction day and 0.9 percentage points the next day, but moved ahead by 3.1 percentage points over five days.

Earlier reaction-day moves were negative on 26 May 2026 at 4.9%, 12 February 2026 at 3.2%, 10 November 2025 at 0.6%, 21 May 2025 at 2.8%, 31 January 2025 at 4.5%, 11 November 2024 at 0.5%, and 5 August 2024 at 1.0%. The only positive move in the listed past reactions was 1.3% on 12 August 2025.