Oil and Natural Gas Corp (ONGC) reported a 57% jump in quarterly profit to ₹15,489 crore, supported by higher oil prices and currency gains. However, the company's shares fell 2.13% as investors noted a drop in profits compared to the previous quarter and production challenges. The firm also declared a record interim dividend of ₹8 per share for shareholders.
Oil and Natural Gas Corp (ONGC) posted a strong financial performance for the July-September 2026 quarter, with a 57.3% year-on-year increase in standalone net profit to ₹15,489 crore. The company’s revenue from operations also saw a significant rise, reaching ₹43,875 crore, which is 32.8% higher than the same period last year. These results were primarily driven by better prices for crude oil and the benefit of a weaker rupee, which increases earnings from oil sold in dollars.
Despite the positive year-on-year growth, the company’s stock faced selling pressure on November 5, 2026, closing at ₹230, down 2.13%. This decline suggests that investors were focused on the sequential moderation in the company's performance, as both revenue and profit dipped when compared to the previous quarter (Q1 FY27).
Operational performance remains a key area for investors to monitor. Total oil and gas production saw a decline during the quarter compared to the previous year. The company explained that this was due to several operational challenges, including technical difficulties at the KG-98/2 asset in the eastern offshore basin. Additionally, heavy monsoon rains and delays in ongoing pipeline replacement projects restricted the company's ability to maintain or increase output levels during the period. The gas business also faced hurdles, with onshore production impacted by inconsistent demand from major consumer facilities.
To reward shareholders, the board of directors declared an interim dividend of ₹8 per share. This distribution amounts to a total of ₹10,064 crore, marking the largest interim payout in the company's history. The record date for eligible shareholders to receive this dividend is November 12, 2026.
Looking ahead, the company continues to invest in its future. The board has approved a loan of ₹10,000 crore for its overseas arm, ONGC Videsh, to support international expansion and exploration. Furthermore, ONGC is pushing ahead with its petrochemical ambitions through a joint venture involving its subsidiary, ONGC Petro additions Limited (OPaL), and Mangalore Refinery and Petrochemicals Limited (MRPL).
The primary focus for investors in the coming quarters will be how effectively ONGC manages its offshore projects. Success will depend on the company’s ability to resolve the technical issues at the KG-98/2 asset and accelerate the completion of pipeline projects to improve overall production output.