ONGC Q2 Results: Profit Misses Estimates, Dividend Payout & Bold Global Energy Deals Unveiled!

Energy

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Updated on 12 Nov 2025, 05:07 pm

Oil and Natural Gas Corporation (ONGC) reported a net profit of ₹9,848 crore for the quarter ended September 2025, slightly below the market estimate of ₹10,010 crore. However, revenue for the period was ₹33,030.6 crore, exceeding the ₹32,480 crore estimate, while EBITDA stood at ₹17,698 crore, lower than the expected ₹18,530 crore. Sequentially, net profit climbed 23% and revenue rose 3.2%. For the first half of FY26, consolidated net profit grew 23.2% to ₹24,169 crore.

**Dividend and Production:** ONGC announced an interim dividend of ₹6 per equity share (120% payout), amounting to ₹7,548 crore, with November 14, 2025, as the record date. Crude oil production saw a 1.2% year-on-year increase to 4.63 MMT, though natural gas production declined marginally. Crude oil realization per barrel was down year-on-year, while gas price realization saw a modest increase.

**Exploration and Strategy:** The company reported two hydrocarbon discoveries and is intensifying deepwater exploration. Key strategic developments include monetizing a small field block in Rajasthan and signing MOUs/JOAs with Vedanta Ltd, BP Exploration, Reliance Industries Ltd, and Oil India Ltd for exploration and development. A significant partnership with Japan’s Mitsui O.S.K. Lines Ltd for Very Large Ethane Carriers (VLECs) to transport US ethane to India starting 2028 was also highlighted. ONGC also entered an LPG agreement with Hindustan Petroleum Corporation Ltd and a CBM block agreement with JSW Steel Ltd.

**Renewables and Technology:** ONGC is investing up to ₹421.50 crore in its subsidiary ONGC Green Ltd to fuel renewable energy projects via ONGC NTPC Green Pvt Ltd and Ayana Renewable Power Pvt Ltd. The company also successfully deployed new drilling technologies and secured patents for innovations.

**Impact** This news is highly relevant for the Indian stock market, impacting ONGC's stock directly and influencing investor sentiment in the energy sector due to its financial results, dividend announcement, strategic global partnerships, and investments in future energy logistics and renewable energy. Rating: 8/10

**Difficult Terms Explained:** * **EBITDA**: Earnings Before Interest, Taxes, Depreciation, and Amortization. A measure of operating performance. * **Sequentially**: Comparing current period results to the immediately preceding period (e.g., Q2 FY26 vs. Q1 FY26). * **Half-year period (H1 FY26)**: The first six months of the financial year 2025-2026. * **Interim dividend**: A dividend paid out by a company during the financial year, between annual payments. * **Equity share**: Common stock representing ownership in a company. * **Standalone**: Financial results of the parent company only, excluding subsidiaries. * **Consolidated**: Combined financial results of the parent company and all its subsidiaries. * **Million metric tonnes (MMT)**: Unit of mass equal to one million tonnes, used for oil production. * **Crude oil realization**: Average price received per barrel of crude oil sold. * **Gas price realization**: Average price received per unit of natural gas sold. * **mmbtu**: Million British thermal units, a unit of energy for natural gas pricing. * **Hydrocarbon discoveries**: Finding deposits of oil and natural gas. * **Deepwater exploration**: Searching for oil/gas in ocean waters over 300 meters deep. * **Monetized**: Converted an asset into cash or revenue. * **Memorandum of Understanding (MoU)**: A preliminary agreement outlining collaboration terms. * **Joint Operating Agreement (JOA)**: An agreement defining rights and responsibilities in exploration ventures. * **Very Large Ethane Carriers (VLECs)**: Ships designed to transport ethane. * **Subsidiary**: A company controlled by a parent company. * **LPG**: Liquefied Petroleum Gas. * **CBM Block**: Coal Bed Methane Block, area containing methane trapped in coal seams. * **ONGC Green Ltd (OGL)**: ONGC's subsidiary for renewable energy. * **Ayana Renewable Power Pvt Ltd**: A renewable energy company.