ONGC Q2 standalone profit rises 57.3% to Rs 15,489 crore

ONGC reported standalone net profit of Rs 15,489 crore in the second quarter (Q2) of financial year 2026-27 (FY27), up 57.3% from Rs 9,848 crore a year earlier, as nominated crude realisation reached US$92.33 per barrel and new-well gas pricing reached US$10.24 per million British thermal units.

What drove ONGC's Q2 profit increase?

Higher oil and gas realisations, rather than higher production volumes, drove ONGC's Q2 profit increase. Nominated crude realisation rose 37.1% year on year to US$92.33 per barrel from US$67.34 per barrel, while the rupee realisation increased 50.2% to Rs 8,826 per barrel from Rs 5,876 per barrel. Crude realisation from joint ventures rose 41.9% to US$97.02 per barrel from US$68.35 per barrel in Q2 FY26.

New-well gas pricing also increased during the quarter. ONGC reported a new-well gas price of US$10.24 per million British thermal units in Q2 FY27, 22.5% above US$8.36 a year earlier, while nominated gas pricing rose 3.7% to US$7.00. For the first half (H1) of FY27, revenue from new-well gas was Rs 7,050 crore and accounted for more than 34% of revenue from ONGC's nomination gas portfolio.

How did ONGC perform in the first half of FY27?

ONGC delivered its highest-ever H1 standalone profit of Rs 32,522 crore, an 82.0% increase from Rs 17,872 crore in H1 FY26. That six-month profit was close to the Rs 32,894 crore standalone profit reported for the full FY26, while H1 FY27 standalone gross revenue increased 38.9% to Rs 90,336 crore from Rs 65,033 crore.

The quarterly revenue increase was also substantial, with standalone gross revenue rising 32.8% to Rs 43,875 crore from Rs 33,030 crore. Consolidated Q2 net profit increased 46.9% to Rs 18,535 crore from Rs 12,615 crore, while consolidated gross revenue rose 25.6% to Rs 1,98,263 crore. In contrast, consolidated H1 net profit grew 3.8% to Rs 25,089 crore, compared with the 82.0% increase in ONGC's standalone H1 profit.

Did ONGC increase oil and gas production in Q2 FY27?

ONGC did not increase reported production year on year in Q2 FY27. Standalone crude oil production was 4.437 million metric tonnes (MMT), down from 4.630 MMT in Q2 FY26, while standalone natural-gas production was 4.839 billion cubic metres (BCM), compared with 4.918 BCM. Standalone oil and oil-equivalent gas output, excluding joint ventures, declined to 9.515 MMT from 9.802 MMT.

ONGC said production was broadly stable in Q2 FY27 compared with Q1 FY27, but identified reservoir-behaviour complexities at the KG-98/2 asset in the Eastern Offshore Basin as a reason for the year-on-year moderation. Monsoon-related operational issues and delays in Pipeline Replacement Projects 8 and 9 also affected output, while lower customer offtake following disruptions at some major consumer facilities affected onshore gas production. Joint ventures operated by others produced 0.244 MMT of crude and 0.087 BCM of gas, versus 0.308 MMT and 0.114 BCM, respectively, a year earlier.

What interim dividend did ONGC declare?

ONGC declared an interim dividend of 160%, or Rs 8 on every equity share with a face value of Rs 5, with a total payout of Rs 10,064 crore. ONGC described it as its highest dividend paid in a single instalment, and its board approved the payment at its 415th meeting on 5 November 2026.

The record date for the Rs 10,064 crore interim dividend is 12 November 2026. The payout follows Q2 standalone net profit of Rs 15,489 crore and H1 standalone net profit of Rs 32,522 crore, but ONGC's announcement did not disclose a final-dividend proposal or a future dividend policy for FY27.

What projects and discoveries could affect ONGC's future production?

ONGC awarded two Western Offshore development projects, MBOSN-2005-1, SD-4 and BS-17, plus additional development of Ratna-1 and NLM-14, involving combined capital investment of about Rs 11,800 crore. The projects are expected to unlock an estimated 22 MMT of oil equivalent of hydrocarbon potential. Separately, ONGC awarded Pipeline Replacement Project-X, costing more than Rs 4,300 crore, to install new subsea pipelines and replace ageing Western Offshore infrastructure.

ONGC has also expanded bp's engagement as technical service provider for its Western Offshore assets to arrest natural decline and accelerate development activities. bp mobilised its Technical Service Provider-2 team for all Western Offshore assets except the Mumbai High field in August 2026. On exploration, ONGC's first well in the Mahanadi deepwater OALP Block MN-DWHP-2018/1 was proved gas-bearing, and it notified two onshore discoveries in Q2 FY27: Amraghat-1 in Assam and Vadatal-48 in the Cambay Basin.

Conclusion

ONGC's Q2 FY27 result reflects a pricing-led earnings increase: standalone net profit rose 57.3% to Rs 15,489 crore even as standalone crude output fell to 4.437 MMT from 4.630 MMT. Higher nominated crude realisation of US$92.33 per barrel, higher new-well gas prices and Rs 7,050 crore of H1 new-well gas revenue were the disclosed drivers behind the record H1 standalone profit of Rs 32,522 crore.

The next areas to watch are execution of the Rs 11,800 crore Western Offshore development awards and the more than Rs 4,300 crore Pipeline Replacement Project-X, which ONGC links to future production and asset reliability. Progress at KG-98/2, resolution of Pipeline Replacement Projects 8 and 9 delays, and bp's Western Offshore technical-service work will also matter because ONGC cited these operational matters while reporting lower year-on-year Q2 production.