ONGC Q1 FY27 Results: Net Profit Soars 112% to ₹17,034 Crore; Highest-Ever Quarterly PBT at ₹22,848 Crore – Indian PSU
State-owned oil and gas major ONGC has reported an exceptional financial performance for the first quarter of FY 2026-27, posting a 112% year-on-year surge in standalone net profit to ₹17,034 crore, driven by higher crude oil realizations and improved gas revenues. The company also recorded its highest-ever quarterly Profit Before Tax (PBT) of ₹22,848 crore, while standalone gross revenue climbed 45.2% to ₹46,460 crore.
The financial results were approved by the company’s Board of Directors during its 413th Board Meeting held on August 4, 2026.
Record Standalone Performance
ONGC’s robust profitability was supported by a sharp increase in global crude oil prices and higher realizations from both crude oil and premium-priced new well gas.
During Q1 FY27:
- Standalone Gross Revenue: ₹46,460 crore (up 45.2% YoY)
- Standalone Net Profit: ₹17,034 crore (up 112.3% YoY)
- Profit Before Tax: ₹22,848 crore (highest ever quarterly)
- Nomination crude realization: US$99.45 per barrel against US$66.13 a year earlier
- New well gas price: US$13.31/MMBtu compared to US$8.24/MMBtu last year
One of the biggest contributors to earnings was premium-priced new well gas, which generated ₹3,998 crore in revenue, delivering an additional ₹1,897 crore over the Administered Price Mechanism (APM) gas pricing. New well gas now contributes around 38% of ONGC’s total nomination gas revenue, reflecting the company’s increasing monetisation of premium gas production.
Consolidated Performance Impacted by HPCL Losses
At the consolidated level, ONGC Group reported:
- Gross Revenue: ₹2,04,987 crore (up 25.7%)
- Consolidated PAT: ₹6,554 crore
- PAT attributable to owners: ₹11,899 crore (up 21.4%)
The company explained that consolidated profits were significantly affected by HPCL’s net loss of ₹12,265 crore, primarily due to under-recoveries on petroleum products following the sharp spike in crude oil prices amid the ongoing West Asia crisis.
However, strong contributions from subsidiaries including ONGC Videsh and MRPL helped cushion the overall impact.
Production Remains Stable Despite Operational Challenges
ONGC maintained relatively stable production during the quarter despite several operational constraints.
Production during Q1 FY27 included:
- Crude Oil (Standalone): 4.452 MMT
- Natural Gas: 4.756 BCM
- Oil & Oil Equivalent Gas: 9.444 MMT
The company attributed the marginal production decline to:
- Reservoir complexities in the KG-98/2 block
- Severe sea swells in Western Offshore delaying pipeline replacement projects
- Temporary shutdowns during commissioning of major offshore projects
- Lower gas offtake from isolated fields because of customer-side operational disruptions
Despite these short-term challenges, ONGC expressed confidence that production growth would resume through strategic projects such as:
- Daman Upside Development Project (DUDP)
- TSP initiatives with bp
- Discovered Small Fields (DSF) developments
₹40,000 Crore Western Offshore Investment to Drive Future Growth
One of the biggest announcements from the quarter is ONGC’s massive capital investment programme exceeding ₹40,000 crore in Western Offshore.
Working in partnership with bp, ONGC is implementing:
- Advanced reservoir management
- Pressure management
- Enhanced water injection
- Pipeline replacement projects
- Major offshore infrastructure upgrades
The company expects these investments to begin delivering meaningful production growth from FY 2027-28 onwards, significantly improving recovery rates and long-term asset performance.
Samudra Manthan Boosts Deepwater Exploration
ONGC also accelerated India’s offshore exploration ambitions under the Government’s Samudra Manthan initiative.
The company successfully spudded its first deepwater exploratory well in the Mahanadi Basin on 25 July 2026 under the Open Acreage Licensing Policy (OALP).
The exploratory well aims to evaluate promising Pliocene channel prospects near the previously discovered UTKAL and KONARK structures, reinforcing ONGC’s commitment to unlocking India’s offshore hydrocarbon resources.
Strategic Collaboration and Resource Sharing
The quarter also witnessed several strategic operational initiatives.
ONGC and Reliance Industries operationalised the sharing of Multi Support Vessels (MSVs) for Eastern Offshore operations to optimise costs.
Additionally, ONGC has extended helicopter services to Oil India Limited for offshore crew transportation and medical evacuation support on a commercial basis.
Recognition for Digital Transformation and Safety
ONGC continued to receive national and international recognition across multiple domains during the quarter.
Among the major honours received were:
- Three awards at the India PSU IT Forum & Awards 2026 for digital transformation and IT excellence
- ICC Technology Excellence Award as Digital Transformation Champion
- Treasury Team of the Year Award
- Golden Peacock Innovative Product/Service Award 2026 for the Institute of Drilling & Well Engineering (IDWE)
- Global Safety Award (Platinum Category)
- Three HSE and Energy Management Awards for Mehsana Asset
Outlook
With record standalone profitability, stronger crude realizations, growing contribution from premium-priced new well gas, and one of the country’s largest offshore capital investment programmes underway, ONGC has positioned itself for sustained long-term growth.
While short-term consolidated earnings remain exposed to downstream marketing losses arising from volatile global crude prices, the company’s expanding exploration activities, deepwater investments, and strategic production enhancement initiatives are expected to strengthen operational performance over the coming years.
