August 4, 2026: State-run Oil and Natural Gas Corporation (ONGC) reported a sharp jump in earnings for the first quarter of FY27, with standalone net profit soaring 112% year-on-year to ₹17,034 crore, supported by significantly higher crude oil realizations and stronger gas prices. The company also recorded its highest-ever quarterly Profit Before Tax (PBT) of ₹22,848 crore, while standalone gross revenue climbed 45.2% to ₹46,460 crore.
The financial results were approved by the ONGC Board during its 413th Board meeting held on August 4, 2026.
ONGC Q1 FY27 Financial Highlights
ONGC delivered one of its strongest quarterly performances in recent years, driven by elevated global crude oil prices and improved gas realizations.
Standalone Performance
- Gross Revenue: ₹46,460 crore, up 45.2% YoY
- Net Profit: ₹17,034 crore, up 112.3% YoY
- Profit Before Tax: ₹22,848 crore (highest ever quarterly)
- Nomination crude realization: US$99.45 per barrel, up over 50%
- New Well Gas Price: US$13.31/MMBtu, up 61.5% YoY
Higher realizations significantly boosted profitability during the quarter despite relatively stable production volumes.
New Well Gas Continues to Drive Growth
ONGC said revenue from new well gas reached ₹3,998 crore during the quarter.
The premium pricing generated an additional revenue of ₹1,897 crore over the conventional APM gas price.
New well gas now contributes nearly 38% of total revenue from ONGC’s nomination gas portfolio, highlighting the growing importance of premium gas production.
Consolidated Profit Impacted by HPCL Losses
At the consolidated level:
- Gross Revenue: ₹2,04,987 crore (up 25.7%)
- Net Profit attributable to owners: ₹11,899 crore (up 21.4%)
- Reported consolidated PAT: ₹6,554 crore
ONGC stated that consolidated earnings were impacted by HPCL’s net loss of ₹12,265 crore, primarily due to fuel under-recoveries arising from the sharp increase in crude oil prices following the West Asia conflict.
However, stronger performances from ONGC Videsh and MRPL partially offset the impact.
Production Remains Stable Despite Operational Challenges
During Q1 FY27:
Crude Oil Production
- ONGC Standalone: 4.452 MMT
- Joint Ventures: 0.262 MMT
Natural Gas Production
- ONGC Standalone: 4.756 BCM
- Joint Ventures: 0.095 BCM
The company said production remained broadly stable compared to recent quarters.
Temporary declines were attributed to:
- Reservoir complexities in KG-98/2
- Pipeline replacement activities in Western Offshore
- Commissioning of major offshore projects
- Reduced gas offtake from certain isolated fields
ONGC expects production to improve as major projects become operational.
₹40,000 Crore Investment to Boost Western Offshore Output
ONGC announced that it is executing one of its largest-ever offshore investment programmes, with projects worth over ₹40,000 crore currently under implementation in Western Offshore.
The investment includes:
- Reservoir management
- Pipeline replacement
- Enhanced water injection
- Major offshore infrastructure projects
- Collaboration with bp to improve production and recovery
The company expects these investments to start delivering production gains from FY28 onwards.
Samudra Manthan Advances Deepwater Exploration
Under the Government’s Samudra Manthan offshore exploration initiative, ONGC has begun drilling its first deepwater exploratory well in the Mahanadi Basin.
The company spudded the MNDWO181HDB-1 exploratory well on July 25, 2026, targeting deeper hydrocarbon potential in India’s offshore region.
ONGC said the programme represents a significant step towards strengthening India’s long-term energy security.
Awards and Operational Achievements
During the quarter, ONGC also reported several recognitions:
- Three awards for digital transformation and IT excellence
- ICC Technology Excellence Award
- Treasury Team of the Year award
- Global Safety Award (Platinum Category)
- Golden Peacock Innovative Product/Service Award
- Multiple HSE and Energy Management awards for Mehsana Asset
The company also expanded collaboration with Reliance Industries for offshore resource sharing and extended helicopter support services to Oil India.
Outlook
ONGC remains optimistic about long-term production growth, supported by major offshore developments, strategic partnerships, premium gas production and continued capital investments.
Management believes projects such as DUDP, TSP, DSF, and ongoing Western Offshore investments will strengthen production and enhance shareholder value over the coming years.
Source: NSE Filing
