Oil and Natural Gas Corporation Q4 FY26 results: net profit up 54.4% to ₹13,678 crore, revenue up 1.8%

How did Oil and Natural Gas Corporation perform in Q4 FY26?

Oil and Natural Gas Corporation Limited reported consolidated revenue of ₹1,73,805 crore in Q4 FY26, up ₹2,993 crore or 1.8% from Q4 FY25 and ₹6,382 crore or 3.8% from Q3 FY26. EBITDA was ₹25,356 crore, up ₹3,271 crore or 14.8% year on year but only ₹20.72 crore or 0.1% sequentially. The EBITDA margin was 14.6%, compared with 12.9% a year earlier and 15.1% in the previous quarter.

Net profit was ₹13,678 crore in Q4 FY26, against ₹8,856 crore in Q4 FY25 and ₹11,946 crore in Q3 FY26. Profit before tax was ₹15,847 crore, while basic EPS was ₹8.6. On the standalone basis, revenue was ₹35,928.18 crore and PAT was ₹6,649.97 crore, compared with standalone PAT of ₹6,448.28 crore in Q4 FY25.

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

Other income rose ₹390.88 crore or 13.1% to ₹3,368 crore from Q4 FY25, while total expenses declined ₹407.07 crore or 0.3% to ₹1,60,864 crore. Cost of materials fell ₹672.30 crore or 1.3% and finance costs fell ₹430.71 crore or 12.3%. Employee cost rose ₹58.02 crore or 3.3%, depreciation increased ₹301.66 crore or 3.3%, and other expenses rose ₹7,073 crore or 18.7%.

The quarter included an exceptional charge of ₹462.09 crore, compared with an exceptional charge of ₹151.09 crore in Q4 FY25. Tax expense rose ₹812.58 crore or 19.6% to ₹4,962 crore. Despite the higher charge and tax, PBT rose ₹3,480 crore or 28.1% to ₹15,847 crore and net profit rose ₹4,822 crore or 54.4%.

How did Oil and Natural Gas Corporation do in FY26 as a whole?

For FY26, consolidated revenue was ₹6,62,247 crore, down ₹1,014.99 crore or 0.2% from FY25, while total income was ₹6,74,603.84 crore, down ₹1,052.04 crore or 0.2%. PBT rose ₹13,258.77 crore or 25.8% to ₹64,621.04 crore, and net profit rose ₹11,464.51 crore or 29.9% to ₹49,793.1 crore. Basic EPS increased 14.3% to ₹32.93 from ₹28.8.

What do the balance sheet and cash flow show?

At 31 March 2026, total assets were ₹7,91,905.18 crore and total equity was ₹4,09,693.28 crore, compared with ₹7,81,417.76 crore and ₹4,01,819.34 crore at 30 September 2025. Borrowings fell to ₹1,42,055.1 crore from ₹1,43,802.26 crore, while cash fell to ₹1,554.39 crore from ₹6,475.96 crore. Inventories were ₹64,918.27 crore, trade receivables ₹22,014.47 crore and trade payables ₹46,933.08 crore.

FY26 operating cash flow was ₹1,12,719.34 crore, compared with ₹90,868.18 crore in FY25. Investing cash flow was negative ₹57,675.87 crore, compared with negative ₹43,021.68 crore, while financing cash flow was negative ₹56,330.73 crore against negative ₹47,907.54 crore. Capital expenditure was ₹41,281.57 crore, compared with ₹41,030.8 crore in FY25.

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

The EBITDA margin peaked at 16.8% in Q2 FY26 and bottomed at 12.9% in Q4 FY25. It eased to 15.1% in Q3 FY26 and 14.6% in Q4 FY26 as revenue reached a series high. Revenue has risen year on year in each of the last two quarters.

Which businesses drove the quarter?

In India exploration and production, offshore revenue was ₹25,341.24 crore and EBIT was ₹6,466.51 crore, while onshore revenue was ₹10,519.68 crore and EBIT was ₹989.47 crore. The respective EBIT margins were 25.5% and 9.4%. No year-ago revenue or EBIT figures were provided for these two reported segments.

Refining and marketing in India reported revenue of ₹1,52,255.02 crore and EBIT of ₹8,906.41 crore, with an EBIT margin of 5.8%. Petrochemicals reported revenue of ₹4,424.72 crore, EBIT of ₹456.18 crore and an EBIT margin of 10.3%. No year-ago segment figures were provided for either business.

Outside India, revenue fell 61.2% to ₹2,364.23 crore from ₹6,090.83 crore, while EBIT rose to ₹802.06 crore from ₹549.97 crore and the EBIT margin was 33.9%. Others Unallocated reported revenue of ₹102.31 crore, up 79.2% from ₹57.09 crore, and EBIT of ₹2,792.92 crore, up from ₹639.07 crore.

What else did the company announce?

On 26 May 2026, the board approved the audited consolidated and standalone financial results for FY26 and recommended a final dividend of ₹1 per equity share of face value ₹5 each, or 20%, subject to shareholder approval. It also gave in-principle approval for a 50:50 joint venture with Gujarat Maritime Board to develop a 5 MMTPA liquid port at Dahej, pending investment approvals and approval from DIPAM, Government of India.

The board approved a related-party transaction for ONGC Nile Ganga BV to provide a parent-company guarantee to Shell Brasil Petróleo Ltda. for abandonment liability of up to USD 325 million, with fees based on a transfer-pricing study. It also recommended shareholder approval for an AssetCo structure and extension of the Debt Service Undertaking validity period for the Area-1 Mozambique Project. The company reported ₹1,000 crore of unsecured non-convertible debentures as on 31 March 2026.

In a filing dated 27 May 2026, the company said the board approved Satyan Kumar as Director (Strategy & Corporate Affairs), effective from 27 May 2026 until 30 November 2028, or until further orders, whichever was earlier. The filing stated that Kumar had more than 36 years of experience across the oil and gas value chain and would drive ONGC’s expansion into renewable and sustainable energy.

What did the auditors point out?

The independent auditors gave an unmodified opinion on the standalone financial results, stating that they gave a true and fair view of net profit, other comprehensive income and other financial information for the quarter and year ended 31 March 2026. They also identified an Emphasis of Matter in the notes to the standalone results.

The auditors drew attention to a pending Arbitration Tribunal Award concerning the Panna-Mukta and Mid and South Tapti contract areas. They stated that the Directorate General of Hydrocarbons had raised a demand of USD 1,624.05 million, equivalent to Rs. 15,225 Crore as on 31 March 2026, which the company considered a contingent liability to the extent of its participating interest in the PMT JV.

The Emphasis of Matter also covered disputed Service Tax and GST levied on royalty on crude oil and natural gas. The auditors stated that a provision had been recognised for demands raised by tax authorities. Disputed demands including penalties and other differences of Rs. 2,187 Crore, and the company’s share of such taxes with interest for other joint-venture partners of Rs. 6,683 Crore, were considered contingent liabilities.

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

The available earnings-call information contains no management guidance, priorities, risk statements, analyst questions or verbatim comments. A filing announced that Chairman and CEO Arun Kumar Singh, Manish Patil, who held additional charge as Director (Finance), CFO Yogish Nayak S. and the team would discuss the Q4 FY26 earnings on 27 May 2026.

The supplied earnings-call record dated 4 June 2026 does not include any management statements beyond that scheduled discussion. Accordingly, the filing excerpts do not support attributing guidance, outlook, priorities or responses to analysts to management.

How did Oil and Natural Gas Corporation shares react?

After the 26 May 2026 filing, ONGC fell 2.7% within five minutes, 1.6% within 15 minutes and 1.8% within 30 minutes. From the previous close of ₹287.35, the stock closed 4.9% lower on the reaction day. By the next day's close it was down 7.5%, and by the fifth session it was down 6.7% from the same pre-results close.

The industry median was unchanged on the reaction day and after five sessions, so ONGC's reaction-day move was 4.9 percentage points below the sector median and its five-session move was 6.7 percentage points below it. The Nifty 100 was up 0.2% on the reaction day and down 1.9% over five sessions. Earlier results-day moves included declines of 3.2% on 12 February 2026, 0.6% on 10 November 2025 and 2.8% on 21 May 2025.