Summary:
ONGC reported a strong Q1FY27 performance, with consolidated net profit more than doubling to ₹17,034 crore, driven by higher crude oil realisations and improved operating margins. Revenue rose 45.2% YoY to ₹46,460 crore, while EBITDA margin expanded sharply to 61%. Despite stable production, the company expects output growth to improve through ongoing offshore projects. ONGC shares are likely to remain in focus as investors assess management's outlook on production, capex and crude prices.
ONGC, which is state-owned, posted a strong performance in Q1FY27, where consolidated net profit witnessed a more than double growth due to increased realisations of crude oil prices along with increased operating profitability.
In Q1FY27, ONGC recorded a consolidated net profit of ₹17,034 crore, registering a growth of 112% from ₹8,024.23 crore in the same period of previous year. Quarterly profit registered a growth of 156% from ₹6,649.97 crore in the quarter ended March 2026.
Income from operations recorded a growth of 29.3% in Q1FY27 from ₹35,928 crore to ₹46,460 crore. Year-on-year basis, gross revenue grew by 45.2% to ₹46,460 crore, whereas total income stood at ₹48,321.65 crore, as compared to ₹33,213.39 crore in previous year.
Pre-tax profit posted a new quarterly high of ₹22,848 crore.
EBITDA More Than Doubles, Margin Expands To 61%
ONGC’s operating performance improved greatly in the quarter.
The company’s EBITDA increased more than double from ₹12,666 crore to ₹28,355 crore as compared to the previous quarter. This is due to the fact that the EBITDA margin improved from 35.3% to 61%. But on the other hand, the other income fell to ₹1,861 crore in the June quarter from ₹2,628 crore.
Higher Crude Realisations Drive Earnings Growth
This steep increase in net income was mostly attributable to higher prices of crude oil.
Realization per barrel of crude oil from nominated areas rose by 50.4% to $99.45 from $66.13 last year. New well gas continued to be another important source of income, providing 38% of income generated from nomination gas portfolio. New well gas revenue amounted to ₹3,998 crore, thereby contributing ₹1,897 crore over APM gas price.
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Crude Oil And Gas Production Remains Largely Stable
ONGC's standalone production was stable with minor reductions on a year-on-year basis.
Crude oil production for ONGC was 4.452 million metric tonnes (MMT) as against 4.683 MMT a year ago. Production of natural gas was 4.756 billion cubic metres (BCM) compared with 4.846 BCM a year ago.
The reduction in production has been largely due to the complexities in the reservoirs of the KG-98/2 block, bad weather conditions in the western offshore block, delayed execution of pipelines and their replacements due to temporary shutdown related to commissioning of new projects.
The management stated that the production decline would get arrested and reversed gradually by executing strategic projects such as Daman Upside Development Project (DUDP), TSP and Discovered Small Fields (DSF). It also emphasized that projects worth more than ₹40,000 crore were currently being executed in the western offshore block to boost production levels from FY28 onwards.
During the quarter, ONGC also drilled the first deepwater exploratory well in the Mahanadi basin as part of the Samudra Manthan offshore exploration program and made two hydrocarbon discoveries out of which one is an offshore discovery and one is the discovery of onshore new pool discovery.
Why ONGC Stock Will Be In Focus
ONGC stocks are forecasted to stay in the limelight following the positive earnings announcement of the company, which is backed by the 112% rise in net profits, a 45.2% increase in revenues, a substantial widening of the EBITDA margin ratio to 61%, and improved crude oil realisations. Market participants will be closely watching the comments of the management regarding the production growth, capital expenditure strategies, crude oil prices, and future outlook during the remaining period of FY27.
