ONGC Q2 profit rises to Rs. 18,534.82 crore on refining

Oil and Natural Gas Corporation Limited (ONGC) reported consolidated profit of Rs. 18,534.82 crore for the quarter ended September 30, 2026, up from Rs. 6,554.44 crore in the preceding quarter and Rs. 12,614.60 crore a year earlier, as refining and marketing returned to a Rs. 9,806.81 crore segment profit from a June-quarter loss.

How did ONGC’s consolidated profit change in Q2?

ONGC’s consolidated profit for the September 2026 quarter rose 194% sequentially from Rs. 6,554.44 crore and 47% from Rs. 12,614.60 crore in the quarter ended September 30, 2025. Profit before tax reached Rs. 27,082.03 crore, compared with Rs. 7,012.45 crore in June 2026 and Rs. 17,284.21 crore a year earlier. Profit attributable to owners of ONGC was Rs. 16,743.54 crore in the latest quarter.

Revenue from operations was Rs. 1,98,263.33 crore, 26% higher than Rs. 1,57,913.60 crore a year earlier but 3% below Rs. 2,04,987.35 crore in June 2026. Total income was Rs. 2,01,458.47 crore, while total expenses fell to Rs. 1,76,275.73 crore from Rs. 2,01,833.13 crore in the preceding quarter. The reported net profit margin was 9.35%, against 3.20% in June 2026 and 7.99% in September 2025.

ONGC’s September-quarter performance also included Rs. 2,018.05 crore as its share of profit from associates and joint ventures, up from Rs. 597.89 crore in June and Rs. 339.64 crore a year earlier. Exceptional items were an expense of Rs. 118.76 crore, compared with exceptional income of Rs. 471.76 crore in the June quarter.

What drove ONGC’s refining and marketing turnaround?

ONGC’s refining and marketing segment recorded profit before tax and interest of Rs. 9,806.81 crore in the September 2026 quarter, reversing a Rs. 16,154.95 crore loss in the June quarter. The latest result was also above the Rs. 6,526.15 crore profit reported for the September 2025 quarter. Segment revenue was Rs. 1,74,829.84 crore, lower than Rs. 1,86,884.38 crore sequentially but above Rs. 1,36,440.25 crore a year earlier.

The quarterly change coincided with lower group costs for materials and traded stock. Cost of materials consumed declined to Rs. 65,271.95 crore in September from Rs. 87,760.89 crore in June, while purchases of stock-in-trade fell to Rs. 60,709.49 crore from Rs. 72,327.23 crore. Statutory levies were Rs. 16,682.64 crore in the latest quarter, against Rs. 17,659.92 crore in June.

The September-quarter recovery did not erase the first-quarter loss. For the half year ended September 30, 2026, refining and marketing reported a segment loss before tax and interest of Rs. 6,348.14 crore, compared with a profit of Rs. 12,458.18 crore in the corresponding half of 2025. Its first-half revenue nevertheless rose to Rs. 3,61,714.22 crore from Rs. 2,77,696.31 crore.

How did ONGC’s exploration and production segments perform?

ONGC’s India exploration and production, or E&P, segment delivered Rs. 12,358.43 crore of profit before tax and interest in the September 2026 quarter. This was below Rs. 19,297.87 crore in June 2026 but above Rs. 9,275.68 crore in September 2025. India E&P revenue was Rs. 30,935.91 crore, against Rs. 33,337.24 crore sequentially and Rs. 22,898.05 crore a year earlier.

India offshore E&P revenue was Rs. 12,813.30 crore, compared with Rs. 13,072.91 crore in June and Rs. 10,042.59 crore a year earlier. Onshore E&P revenue was Rs. 3,963.30 crore, versus Rs. 4,077.53 crore in June and Rs. 1,946.05 crore in the prior-year quarter. Outside-India E&P revenue was Rs. 3,168.73 crore, while its segment profit was Rs. 422.64 crore, below Rs. 1,032.75 crore in June and Rs. 585.24 crore a year earlier.

Petrochemicals remained loss-making, although the segment loss narrowed to Rs. 240.54 crore from Rs. 446.40 crore in June 2026. The loss was wider than Rs. 173.15 crore in September 2025. Petrochemicals revenue increased to Rs. 5,655.48 crore from Rs. 3,857.87 crore in June and Rs. 3,395.59 crore a year earlier.

What do ONGC’s half-year cash flow and balance sheet show?

ONGC reported first-half profit of Rs. 25,089.26 crore for the six months ended September 30, 2026, compared with Rs. 24,168.81 crore in the corresponding 2025 period. First-half revenue from operations increased to Rs. 4,03,250.68 crore from Rs. 3,21,019.93 crore, while profit before tax rose to Rs. 34,094.48 crore from Rs. 32,792.79 crore.

Net cash generated from operating activities was Rs. 55,617.39 crore in the first half, down from Rs. 60,785.63 crore a year earlier. Investing activities used Rs. 50,842.47 crore, compared with Rs. 33,829.12 crore in the prior-year half, including Rs. 17,343.45 crore of payments for property, plant and equipment and Rs. 6,498.68 crore for exploratory and development drilling. Financing activities generated Rs. 126.56 crore, after using Rs. 19,558.27 crore in the previous first half.

Total assets stood at Rs. 8,33,615.06 crore on September 30, 2026, up from Rs. 7,91,905.18 crore on March 31, 2026. Total equity increased to Rs. 4,33,481.62 crore from Rs. 4,09,693.28 crore, while total liabilities rose to Rs. 4,00,133.44 crore from Rs. 3,82,211.90 crore. Current and non-current borrowings together were Rs. 1,52,473.15 crore at September 30, compared with Rs. 1,42,055.10 crore at March 31.

What disclosed legal and accounting matters remain unresolved for ONGC?

ONGC disclosed a contingent liability of Rs. 15,583 crore as at September 30, 2026 relating to a demand involving the Panna-Mukta and Mid & South Tapti fields. The demand is based on the company’s 40% share and remains subject to arbitration and judicial proceedings; ONGC has not made a provision pending finality. The comparable disclosed amount was Rs. 15,225 crore on March 31, 2026.

The company also disclosed a Rs. 21,138 crore provision for disputed Service Tax and goods and services tax on royalty, including interest, as at September 30, 2026. It had deposited Rs. 20,139 crore under protest by that date. Other contingent liabilities included Rs. 7,186 crore relating to joint-venture partners’ shares and Rs. 2,213 crore for disputed penalties and other matters.

ONGC took control of the CB-OS-02 block on July 22, 2026 following a government directive, after the Delhi High Court dismissed Vedanta Limited’s writ petition. Vedanta Limited challenged that order before a Division Bench on the same date; the hearing was completed and judgment was reserved, leaving the outcome and any consequential impact undetermined.

Conclusion

ONGC’s September-quarter earnings increase reflected a major quarter-on-quarter change in refining and marketing, which moved from a Rs. 16,154.95 crore segment loss to a Rs. 9,806.81 crore profit. India E&P remained profitable at Rs. 12,358.43 crore, while the group’s revenue was higher than a year earlier but below the June-quarter level. The first-half refining and marketing loss and lower operating cash generation show that the quarter’s improvement sits within a mixed six-month performance.

The next reported period will show whether refining and marketing sustains its September-quarter profit after its Rs. 6,348.14 crore first-half loss. Investors can also monitor the reserved judgment in the CB-OS-02 litigation, the pending Panna-Mukta and Mid & South Tapti proceedings, and the disputed royalty tax matter for which ONGC had recorded a Rs. 21,138 crore provision as at September 30, 2026.