State-owned energy major Oil and Natural Gas Corporation (ONGC) has reported a stellar financial performance for the first quarter of FY 2026–27, posting its highest-ever standalone quarterly profit. Driven by elevated global crude oil prices, improved gas realisations and operational efficiencies, the company recorded a 112.3% year-on-year jump in standalone net profit to ₹17,034 crore, compared to ₹8,024 crore in the corresponding quarter last year. Standalone revenue from operations also surged 45.2% to ₹46,460 crore, reflecting strong market conditions and improved realisations.
The company’s performance was fuelled by a sharp rise in crude oil prices following geopolitical tensions in West Asia. ONGC’s net crude oil realisation increased 50.4% to US$99.45 per barrel, while premium-priced New Well Gas generated ₹3,998 crore in revenue, providing an additional ₹1,897 crore over the government’s Administered Price Mechanism (APM). New Well Gas now contributes nearly 38% of the company’s nomination gas revenue. Lower write-offs from dry exploratory wells also strengthened profitability, enabling ONGC to achieve its highest-ever quarterly Profit Before Tax (PBT) of ₹22,848 crore.
Despite the record standalone performance, consolidated net profit declined 43.3% to ₹6,554 crore, mainly due to a ₹12,265 crore loss reported by subsidiary Hindustan Petroleum Corporation Limited (HPCL), which faced significant under-recoveries amid soaring crude prices. Strong contributions from ONGC Videsh and Mangalore Refinery and Petrochemicals Limited (MRPL) partially offset the impact.
Operationally, crude oil production declined by 5.5% and natural gas output slipped around 2%, affected by reservoir complexities and adverse offshore conditions. However, ONGC remains optimistic, with over ₹40,000 crore being invested in Western Offshore projects, including the Daman Upside Development Project (DUDP), to boost production from FY28 onwards. The company has also intensified offshore exploration under the Samudra Manthan initiative, reinforcing its long-term commitment to strengthening India’s energy security.
