ONGC Shares Decline 4% Amid Modest Quarterly Profit Growth

ONGC Shares Fall 4% as PSU Firm Reports Modest Growth in Q4 Revenue and Profit

Oil and Natural Gas Corp (ONGC) shares declined by up to 4% on May 27, following the PSU firm's report of modest growth in fourth-quarter revenue and profit. The company's financial performance was impacted by higher operational expenses and dry well write-offs, leading to a soft quarter.

In its quarterly report, ONGC recorded a 3% rise in March quarter profit to Rs 6,649.97 crore, driven by higher oil and gas prices that offset a drop in output. This marked a significant improvement from the corresponding period of the previous year, where the net profit stood at Rs 6,448.28 crore. Notably, net profit in Q4 of FY26 was lower than Q3 of FY26, which stood at Rs 8,371.85 crore.

Revenue from operations rose marginally to Rs 35,928.18 crore during the quarter from Rs 34,982.23 crore in Q4 of FY25. Despite this growth, ONGC's full-year net profit declined by 7.6% to Rs 32,894.02 crore, compared to Rs 35,610.32 crore in the previous fiscal year.

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On May 27, ONGC shares were trading 2.6% lower at Rs 280 apiece. Domestic brokerage Motilal Oswal Financial Services has a "neutral" rating on the stock, citing production volume growth as a disappointment.

ONGC wrote off Rs 4,876.75 crore in exploration well cost during the quarter under review, following unsuccessful commercial hydrocarbon discoveries. This compared to Rs 4,173.04 crore in the corresponding quarter of the previous year. For the full year, the exploratory well cost written off was Rs 8,235.98 crore, a decline from Rs 7,479.96 crore a year back.

The Board of Directors of ONGC recommended a final dividend of Re 1 per share for the 2025-26 fiscal year.

Comparison of Q4 FY26 Revenue and Profit

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