State-owned Oil and Natural Gas Corporation (ONGC) reported a more than two-fold jump in net profit to Rs 17,033.81 crore for the April-June quarter of the 2026-27 financial year, driven by higher crude oil prices and improved realisations, according to Business-Today. The profit compares with Rs 8,024.23 crore in the corresponding quarter last year and Rs 6,649.97 crore in the January-March quarter. Total income 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.
Crude oil realisations lift earnings
Stronger crude prices were the key driver, Business-Today reported. 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, accounting for around 38% of revenue from ONGC's nomination gas portfolio. Revenue from new well gas stood at Rs 3,998 crore, generating an additional Rs 1,897 crore over the administered price mechanism (APM) gas price.
Production steady but marginally lower
Crude oil and natural gas production remained broadly steady, though both recorded marginal declines. 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.
Strategic projects and capital spending
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 added that capital projects worth more than Rs 40,000 crore are being implemented in its western offshore fields to support higher production from FY28 onwards.
Exploration milestones
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.
Key financial metrics
| Metric | Q1 FY27 (April-June 2026) | Q1 FY26 (April-June 2025) |
|---|---|---|
| Net profit | Rs 17,033.81 crore | Rs 8,024.23 crore |
| Total income | Rs 48,321.65 crore | Rs 33,213.39 crore |
| Crude oil realisation | $99.45 per barrel | $66.13 per barrel |
| Crude oil output | 4.45 million tonnes | 4.68 million tonnes |
| Natural gas output | 4.76 billion cubic metres | 4.85 billion cubic metres |
Investors and analysts tracking the state-run explorer will note the divergence between sharply higher profitability and steady production decline. With crude realisations up sharply year on year and capital projects worth Rs 40,000 crore slated to lift output from FY28, ONGC's near-term earnings visibility remains tied to global crude prices, according to the company's disclosure.
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