ONGC Q2FY26 Net Profit Jumps 28% YoY to ₹12,615 Crore; Declares ₹6 Interim Dividend

11 Nov 2025 , 01:10 PM

Oil and Natural Gas Corporation Ltd (ONGC) reported a 28.2% year-on-year rise in its consolidated net profit, reaching ₹12,615 crore for the quarter ended September 2025 (Q2 FY26).

The company’s standalone net profit for the same period stood at ₹9,848 crore, showing healthy operational performance. Consolidated gross revenue saw a marginal decline of 0.9% to ₹1,57,911 crore, reflecting slightly lower price realisation from crude oil and gas.

For the half-year period (H1 FY26), ONGC’s consolidated net profit rose 23.2% to ₹24,169 crore, backed by improved cost control and higher production efficiency.

Dividend Declaration

ONGC’s Board of Directors approved an interim dividend of ₹6 per equity share on a face value of ₹5, translating to a 120% payout. The total dividend outlay is ₹7,548 crore, and the record date for eligibility has been fixed as November 14, 2025.

Key Business Developments

The company monetised its discovered small field block Chinnewala Tibba in Rajasthan, enhancing its asset portfolio. It signed a memorandum of understanding (MoU) with Vedanta Ltd for the joint development of the Jantapathar Gas Field in the Assam and Assam-Arakan Basin (A&AA Basin).

ONGC entered into joint operating agreements with BP Exploration (Alpha) Ltd and Reliance Industries Ltd for exploration activities in the Saurashtra Basin. It also partnered with Oil India Ltd for three OALP-IX blocks, strengthening its exploration footprint across India.

Strategic Joint Ventures and Partnerships

ONGC signed a binding Heads of Agreement with Japan’s Mitsui O.S.K. Lines Ltd (MOL) to set up two joint ventures (50:50 shareholding each) for Very Large Ethane Carriers (VLECs).

These carriers will transport ethane from the United States to India for ONGC’s subsidiary OPaL starting in 2028. The total investment commitment for the two ventures is $49.2 million (₹435.03 crore), which will be invested in stages after necessary approvals from DIPAM.

The partnership supports India’s “Maritime Amrit Kaal Vision 2047” and strengthens ONGC’s role in the energy logistics sector. During the quarter, ONGC also signed its first LPG sale and purchase agreement with Hindustan Petroleum Corporation Ltd (HPCL). Additionally, it formed a co-development agreement with JSW Steel Ltd for the Jharia CBM Block, boosting its gas-based project portfolio.

Technological Advancements and Innovations

ONGC successfully deployed VisiTraK drilling technology in the Western Offshore region, improving precision in drilling operations. The company received patents for new fracturing fluid formulations and a US patent for its ThixoLite drilling solution, highlighting its focus on innovation.

Green Energy Expansion

The ONGC Board approved an investment of up to ₹421.5 crore in its wholly owned subsidiary, ONGC Green Ltd (OGL) through a rights issue. The funds will enable OGL to invest in ONGC NTPC Green Pvt Ltd (ONGPL), which in turn will infuse equity into Ayana Renewable Power Pvt Ltd. ONGPL is a 50:50 joint venture between OGL and NTPC Green Energy Ltd, focusing on large-scale renewable energy projects.

Ayana Renewable Power operates around 4.1 GW of renewable assets across India, backed by long-term power purchase agreements with reputed offtakers such as SECI, NTPC, GUVNL, and Indian Railways.

Operational and Financial Updates

Crude oil production during Q2 FY26 rose 1.2% YoY to 4.63 million metric tonnes (MMT), while natural gas production dipped marginally by 0.04%. The share of new well gas (NWG) in total gas revenue from nomination fields reached 21% during H1 FY26, contributing ₹3,352 crore. This is an additional ₹651 crore above the APM gas rate.

ONGC’s crude oil realisation from nomination fields averaged $67.34 per barrel, down 14% YoY, while from joint venture fields, it dropped 12.3% to $68.35 per barrel.

The company’s average gas price realisation from nomination fields improved 3.8% YoY to $6.75 per million British thermal units (mmbtu).

Exploration Activities

During H1 FY26, ONGC made two hydrocarbon discoveries: the ‘Vajramani’ prospect and a new pool discovery in well MBS202HAA-1. The company is advancing deepwater exploration in the Andaman region under the Prime Minister’s “Samudra Manthan” mission, with seismic surveys progressing along both coasts.

Debt and NCD Position

ONGC issued four series of non-convertible debentures (NCDs) worth ₹4,140 crore in FY2020–21. As of September 30, 2025, the outstanding NCD amount stood at ₹1,000 crore, and the company confirmed that all proceeds were fully utilised for their intended purpose.

The firm had ₹10,000 million of unsecured NCDs outstanding as of the same date. ONGC had earlier submitted statements of NIL deviation in November 2020 and June 2021, reaffirming compliance with utilisation norms.

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