ONGC Q1 results: Oil giant’s profit doubles to Rs 17,034 crore amid rising crude prices

ONGC Q1 results: Oil giant's profit doubles to Rs 17,034 crore amid rising crude prices

State-owned Oil and Natural Gas Corporation (ONGC) reported a more than two-fold jump in its profit for the April-June quarter on Tuesday. The spike was fueled by higher crude oil prices and improved realisations, even as oil and gas production remained broadly stable.According to a stock exchange filing, the company posted a net profit of Rs 17,033.81 crore in the first quarter of the 2026-27 financial year, compared with Rs 8,024.23 crore in the corresponding period last year. The profit was also significantly higher than the Rs 6,649.97 crore reported in the January-March quarter.Total income during the quarter rose to Rs 48,321.65 crore from Rs 33,213.39 crore a year earlier, while profit before tax climbed to a record quarterly high of Rs 22,848 crore.The sharp rise in earnings was supported by stronger crude oil prices. Net crude oil realisation from nominated fields increased to $99.45 per barrel during the quarter, up from $66.13 per barrel in the same period last year.New well gas also made a significant contribution to the company’s performance, accounting for around 38% of revenue from ONGC’s nomination gas portfolio.Revenue from new well gas stood at Rs 3,998 crore in the quarter, generating an additional Rs 1,897 crore over the administered price mechanism (APM) gas price.Production of crude oil and natural gas remained broadly steady during the quarter, although both recorded marginal declines compared with a year ago. Crude oil output fell to 4.45 million tonnes from 4.68 million tonnes, while natural gas production slipped to 4.76 billion cubic metres from 4.85 billion cubic metres.ONGC attributed the lower production to reservoir complexities in the KG-98/2 block, adverse weather conditions in the western offshore region, delays in pipeline replacement projects and temporary shutdowns associated with the commissioning of major projects.The company said production is expected to improve as strategic projects, including the Daman Upside Development Project (DUDP), TSP and Discovered Small Fields (DSF) projects, are completed.It also said capital projects worth more than Rs 40,000 crore are being implemented in its western offshore fields to support higher production from FY28 onwards.Separately, ONGC said it has spudded its first deepwater exploratory well in the Mahanadi basin under the government’s Samudra Manthan offshore exploration programme, which is aimed at strengthening India’s offshore energy security.During the April-June quarter, the company also reported two hydrocarbon discoveries comprising one offshore prospect and one onshore new pool discovery.

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