ONGC Reports 3% Year-Over-Year Increase in Q4 Net Profit to ₹6,650 Crore, Declares Final Dividend

ONGC Reports Modest 3% YoY Rise in Net Profit for March Quarter

State-owned Oil and Natural Gas Corporation (ONGC) reported its financial performance for the March quarter, posting a modest 3% year-over-year (YoY) rise in net profit at ₹6,650 crore. The company's net profit for the same period last year stood at ₹6,448.28 crore. Despite a decline in production during the reporting quarter, higher oil and gas prices supported the bottom-line performance.

Revenue from Operations

ONGC's revenue from operations during the quarter under review stood at ₹35,928.18 crore, rising marginally from ₹34,982.23 crore reported in Q4FY25. The company's revenue for the full fiscal year declined 4% to ₹1.32 lakh crore, while net profit fell 7.6% to ₹32,894.02 crore from ₹35,610.32 crore reported in FY25.

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Exploration Expenses and Production Challenges

During the quarter, the company wrote off ₹4,876.75 crore towards exploration expenses after wells drilled did not yield any commercial hydrocarbon discoveries. This was higher compared to the ₹4,173.04 crore write-off recorded in the corresponding quarter of the previous year. Geological surprises arising out of reservoir complexities affected production from the 98/2 field in the Eastern Offshore basin. The West Asia crisis also impacted pipeline replacement projects and the DUDP project, affecting oil and gas production from Western Offshore fields.

Initiatives to Address Exploration and Production Challenges

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While ONGC's production has remained broadly flat in recent years, the company has now undertaken a series of initiatives to address India's exploration and production challenges. The company has also announced plans to establish a 5 MMTPA liquid port at Dahej, Gujarat, in partnership with the Gujarat Maritime Board (GMB). The proposed port facility will serve as a strategic enabler for the ONGC Group's integrated energy business while leveraging its strong asset base in the region.

Dividend Announcement

Along with the financial results, the company also announced a final dividend of Re 1 per share for FY26, subject to shareholders' approval. The total dividend for FY26 would be 265% (₹13.25 per share of face value ₹5 each), with a total payout of ₹16,669 crore. This includes an interim dividend payout of ₹15,411 crore, equivalent to 245% (₹12.25 per share), which was already paid during the year.