ONGC Surpasses Expectations with 112% Net Profit Jump Amid Production Slump

The Oil and Natural Gas Corporation (ONGC) reported a significant increase in its standalone net profit, rising by 112% to Rs 17,034 crore in the first quarter of fiscal year 2026-27.

However, ONGC's oil and gas production declined during this period, with crude oil output falling by 5.5% to 4.95 million tonnes and natural gas production decreasing by 2% to 4.851 billion cubic metres.

The revenue from operations jumped by 45.2% year-on-year to Rs 46,460 crore in Q1, while the new well gas contributed around 38% of total revenue from ONGC's nomination gas portfolio, delivering an additional Rs 1,897 crore in revenue compared with the administered price mechanism (APM) gas price.

The decline in production was primarily attributed to complexities in reservoir behavior and operational disruptions at customer facilities, resulting in reduced demand and consequently production.