Oil and Natural Gas Corporation reported a consolidated net profit of ₹49,793 crore for the financial year ended March 31, 2026, an increase of 30% from ₹38,329 crore in the previous year. Revenue from operations for the period stood at ₹662,247 crore. The Board of Directors has recommended a final dividend of ₹1 per share, amounting to ₹1,258 crore, in addition to the interim dividends of ₹12.25 per share already paid, bringing the total dividend payout to ₹13.25 per share for the financial year. This represents the highest ever total dividend of ₹16,669 crore with a payout ratio of approximately 51%. The company's management has not provided production targets for FY27.

Annual Financial Performance

The company recorded a basic earnings per share of ₹8.60 for FY26, compared to ₹7.96 in the previous year. Finance costs for the year amounted to ₹8,650 crore, while depletion, depreciation, amortisation, and impairment charges stood at ₹37,391 crore. The net worth of the company was reported at ₹371,768 crore as of March 31, 2026. The following table summarises the key annual financial metrics:

Q4 Standalone Financial Results

On a standalone basis, ONGC's quarterly performance reflected notable sequential shifts across key metrics. Net profit for Q4 stood at ₹6,650 crore, compared to ₹6,448 crore in the year-ago quarter. Revenue came in at ₹35,927 crore, up from ₹34,982 crore on a year-on-year basis. EBITDA for the quarter was ₹12,670 crore versus ₹15,270 crore in the prior year, with the EBITDA margin contracting to 35.25% from 48.41% sequentially. Jefferies noted that the Q4 EBITDA shortfall of 20% against estimates was primarily driven by higher operating expenses and dry well write-offs.

Strategic Decisions and Production

According to the company's concall update, ONGC's current execution of offshore projects is valued at ₹33,075 crore. The Board accorded in-principle approval for the formation of a 50:50 joint venture company with Gujarat Maritime Board to develop a 5 MMTPA liquid port at Dahej, Gujarat. This facility is intended to serve as a strategic enabler for the ONGC Group's integrated energy business. The company reported that new well gas constitutes 17% of production and 21% of revenue from ONGC nomination gas portfolio in FY26. Revenue from new well gas stood at ₹6,678 crore, delivering an additional ₹1,223 crore revenue compared to the APM gas price.

Auditor's Report and Disclosures

The Statutory Auditors issued an unmodified opinion on the standalone and consolidated financial results. The report highlighted several emphasis of matter points, including a contingent liability of ₹15,225 crore related to the Panna-Mukta and Mid & South Tapti contract areas arbitration award. The company has also recognized a provision of ₹19,645 crore towards disputed Service Tax/GST on royalty. Furthermore, a refund of ₹2,088 crore related to Terminal Excise Duty is considered good and recoverable.

Corporate Governance

The company noted that it did not have the minimum number of Independent Directors required under SEBI regulations and the Companies Act, 2013, following the completion of the tenure of Independent Directors on March 27, 2026. Consequently, the Board did not comply with the requirement of having at least one woman independent director from March 28 to March 31, 2026. The financial results were reviewed and approved by the Board of Directors at the meeting held on May 26, 2026.

Oil and Natural Gas Corporation has announced plans to drill 15-16 wells over the next two years, underlining its commitment to expanding domestic exploration and production activities. The state-owned energy major has also indicated that it anticipates major government spending on exploration and production commencing from FY28.

Drilling Programme and Exploration Outlook

The planned drilling of 15-16 wells over the next two years reflects ONGC's continued push to strengthen its upstream portfolio. The company's forward-looking drilling agenda is aligned with broader national objectives of enhancing domestic hydrocarbon output and reducing import dependence.

Government Spending on Exploration and Production

ONGC anticipates that major government spending on exploration and production will gain momentum from FY28. This expected increase in public investment is seen as a key enabler for scaling up domestic energy exploration, with the company positioned to benefit from enhanced budgetary support directed at the sector.