The Oil and Natural Gas Corporation (ONGC) shares are in focus after the company reported a robust quarterly performance in the first quarter of fiscal year 2026-27.

The company posted a 112% year-on-year (YoY) increase in standalone net profit to Rs 17,034 crore in the first quarter of fiscal year 2026-27.

The upstream company’s revenue from operations jumped 45.2% YoY to Rs 46,460 crore in Q1. 

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ONGC Q1 highlights

On a consolidated basis, ONGC’s net profit fell 43.3% during the quarter on account of Hindustan Petroleum Corporation’s (HPCL’s) consolidated net loss of Rs 12,265 crore due to under-recoveries on petroleum products arising from the sharp increase in crude oil prices following the West Asia crisis.

During the quarter, revenue from new well gas stood at Rs 3,998 crore, delivering an additional Rs 1,897 crore in revenue compared with the administered price mechanism (APM) gas price. New well gas now contributes around 38% of total revenue from ONGC’s nomination gas portfolio.

ONGC production drops

ONGC’s crude oil production fell 5.5% YoY to 4.95 million tonnes (mt) in Q1, while natural gas output fell 2% to 4.851 billion cubic metres (bcm).

However, the reduction in quarterly production with respect to the corresponding period of FY26 is primarily attributed to complexities in reservoir behaviour of KG-98/2 in Eastern Offshore, inclement swell in Western Offshore in April and May 2026 before the onset of monsoon, resulting in delays in PRP-8 and PRP-9 (Pipeline Replacement Project). 

Also, temporary closing of wells during pre-commissioning/commissioning activities of major projects viz MTPBP (MHN-TCPP-PGC-BGC Project), DUDP (Daman Upside Development Project). 

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Gas offtake from small isolated fields was lower during the quarter, primarily due to operational disruptions at customer facilities, leading to reduced demand and consequently production.

ONGC share price performance

The share price of ONGC has risen 1.3% in the last five trading days. The stock has changed a little in the last one month and has dropped more than 10% in the past six months. ONGC’s share has surged 3.2% in the last 12 months.