ONGC Share Price Declines 3% Following Q4 Earnings Release: A Closer Look at Investment Prospects

ONGC Share Price Falls 3.5% Amid Lower Production and Higher Exploration Write-Offs

On Wednesday, 27 May, the Oil and Natural Gas Corporation (ONGC) share price declined by 3.5% after the company released its March-quarter earnings. The state-owned energy major reported a consolidated net profit of ₹6,649.97 crore for the quarter ended March 2026, marking a 3% year-on-year increase from ₹6,448.28 crore in the same period last year. However, the profit declined sequentially from ₹8,371.85 crore reported in the December quarter.

Key Financial Highlights

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ONGC's revenue from operations rose marginally to ₹35,928.18 crore during the quarter from ₹34,982.23 crore in the corresponding period last year, supported by higher crude oil and natural gas prices. For the full financial year FY26, the company reported a 7.6% decline in net profit to ₹32,894.02 crore, compared with ₹35,610.32 crore in FY25, reflecting operational challenges and higher costs.

A key drag on earnings was the write-off of exploration expenses. During the March quarter, ONGC wrote off ₹4,876.75 crore related to exploratory wells that failed to yield commercially viable hydrocarbon discoveries, higher than the ₹4,173.04 crore written off in the corresponding quarter last year. For the full year, exploration well write-offs increased to ₹8,235.98 crore, compared with ₹7,479.96 crore in FY25.

The company's board recommended a final dividend of Re 1 per equity share for FY26, subject to shareholder approval.