The state-run explorer also reaffirmed its long-term production strategy, backed by an ongoing ₹40,000 crore investment programme in its Western Offshore assets.
For the quarter ended June 2026, ONGC posted a standalone net profit of ₹17,034 crore, comfortably ahead of the CNBC-TV18 poll estimate of ₹13,787 crore.
Revenue rose 29.3% quarter-on-quarter to ₹46,461 crore, marginally ahead of estimates, while EBITDA surged to ₹28,355 crore, beating the Street’s expectation of ₹27,482 crore. Operating margin expanded sharply to 61%, compared with 35.3% in the previous quarter and above the Street estimate of 59%.
A key contributor to the strong earnings was the growing share of new well gas, which generated ₹3,998 crore in revenue during the quarter. According to the company, premium-priced new well gas now contributes around 38% of revenue from its nomination gas portfolio, delivering an additional ₹1,897 crore compared with the Administered Price Mechanism (APM) gas price.
Operationally, oil and gas production remained largely flat during the quarter, maintaining the momentum seen in the Western Offshore business in the previous quarter. However, ONGC said production was affected by reservoir complexities in the KG-98/2 block, rough sea conditions in the Western Offshore before the onset of the monsoon, delays in pipeline replacement projects and temporary well shutdowns during commissioning of major development projects. Lower gas offtake from certain customer facilities also weighed on production.
The company expects these pressures to ease as projects such as the Daman Upside Development Project (DUDP), TSP and Discovered Small Fields (DSF) gather pace.
ONGC also highlighted progress under Samudra Manthan, the government’s offshore exploration initiative, with the company spudding its first deepwater exploratory well in the Mahanadi Basin during the quarter.
The company said it remains optimistic about the long-term prospects of its Western Offshore portfolio and is working with bp on reservoir management, enhanced recovery and infrastructure upgrades as part of its ongoing ₹40,000 crore capital investment programme, with benefits expected to start materialising from FY28 onwards.
ONGC is India’s largest oil and gas exploration and production company, accounting for the bulk of the country’s domestic crude oil and natural gas output.
