State-owned (ONGC), on Tuesday, post-market hours, reported its financial performance for the March quarter, posting a modest 3% YoY rise in net profit at ₹6,650 crore. Although production declined during the reporting quarter, higher oil and gas prices supported the bottom-line performance.
In the same period last year, the company had posted a net profit of ₹6,448.28 crore. Revenue from operations during the quarter under review stood at ₹35,928.18 crore, rising marginally from ₹34,982.23 crore reported in Q4FY25.
While the YoY net profit performance remained stable, the sequential performance came in sharply lower, with net profit declining 20.6% compared to Q3FY26.
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.
According to the company’s earnings filing, 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.
Further, the company said some production was temporarily impacted due to hook-up operations involving pipelines, compressors, turbines, existing wells, and surface facilities in the Western Offshore region.
While ONGC’s production has remained broadly flat in recent years, the company said it has now undertaken a series of bold, structured, and long-term initiatives to address India’s exploration and production challenges.
For the full fiscal year, the company reported a weak performance, with revenue declining 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.
Meanwhile, the board of directors approved the formation of a 50:50 joint venture company with the Gujarat Maritime Board (GMB) to develop a 5 MMTPA liquid port at Dahej, Gujarat, subject to investment approvals by the joint venture partners and approval from DIPAM, Government of India.
According to the company, the proposed port facility at Dahej will serve as a strategic enabler for the ONGC Group’s integrated energy business while leveraging its strong asset base in the region. ONGC aims to establish the port infrastructure to strengthen its logistics backbone.
Announces final dividend for FY26
Along with the financial results, the company also announced a of Re 1 per share for FY26, subject to shareholders’ approval.
“The Board has recommended a final dividend of 20% ( ₹1 per share), subject to the approval of shareholders at the AGM. 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,” the company said in its earnings filing.
This includes an interim dividend payout of ₹15,411 crore, equivalent to 245% ( ₹12.25 per share), which was already paid during the year.
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