OILANDNATURALGAS Q1 FY27 earnings call.
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Revenue
₹46,460 Cr
verification pending
Revenue YoY
45%
reported change
EBITDA
Pending
latest reported figure
Source
bse pending
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
ONGC delivered an exceptional Q1 FY27 with standalone revenue of ₹46,460 crore (+45% YoY) and PAT of ₹17,034 crore (+112% YoY), driven by higher crude price realizations at $99.45/bbl. The consolidated PAT of ₹6,554 crore was impacted by HPCL's ₹2,012.65 crore loss due to under-recoveries from the West Asia crisis. New well gas contributed 38% of nomination gas revenue, reaching nearly ₹4,000 crore with ₹1,900 crore incremental realization. The three transformational themes—gas portfolio migration, Western Offshore renewal via TSP with BP (40,000 crore capex), and deep water exploration under the Samudra Mangalan scheme (₹84,084 crore government outlay)—position ONGC for sustained growth. Near-term production challenges in KG 98X2 (reservoir complexity) and execution-related interruptions in Western Offshore are expected to normalize by Q4 FY27, with the full-year standalone production guidance of 39 MMT (oil+gas) and 40 MMT for FY28.
Colored figures show movement against the previous available record.
Guidance to track
- Standalone oil and gas production expected to reach 39 MMT in FY27 with ~1 MM OE incremental production, rising to 40 MMT in FY28 driven by DUDP, CPP commissioning (1.3 Mmscmd by Q3), and TSP phases.
- Current 1.5 Mmscmd production to reach 3 Mmscmd by Q4 FY27 with commissioning of 3 additional gas wells post-CPP start-up in October-November 2026. Further ramp-up to 6-7 Mmscmd targeted by Q4 FY28.
- Capex guidance unchanged at $3.5-4 billion annually, with exploration capex upside expected from the Samudra Mangalan government-funded deep water exploration program.
- Lower Q1 survey expenditure due to contract retendering (tender rates unworkable). Major survey contracts now awarded; significant activity expected from October onward, both for Samudra Mangalan and general exploration.
Risks flagged
- Deep water oil production faces reservoir interconnection complexity being studied with world-renowned geological experts. Each re-entry costs ₹500+ crore. Developmental strategy expected shortly but timeline and cost implications remain uncertain.
- HPCL reported ₹2,012.65 crore net loss due to under-recoveries on petroleum products from the West Asia crisis-driven crude price spike. This substantially offset ONGC standalone strength and will continue to weigh on consolidated performance.
- OPAL reported negative EBITDA of ₹57 crore vs positive ₹120.7 crore in Q1 FY26 due to Nafta price spike from $600 to $1,000/ton while gaseous feed was unavailable. Management expects normalization as gaseous feed resumes and ethane sourcing from international markets via MoU with Mitsubishi begins.
- Analyst questioned whether ONGC's decision not to participate in the JV arbitration (following government directive) may result in loss of benefit if arbitration award applies only to participating parties. Management stated JV outcome will be applicable to all parties but did not address the specific legal risk of non-participation.
Key quotes
- This quarter also witnessed the highest ever standalone quarterly before tax of ₹22,848 crore.
- We are expecting 4 gas [wells] and it will be in the 6 to 7 million [Mmscmd]. Somewhere you can say that Q4 of 2728 we will be reaching this.
- It is not going to be some surprise incremental cost which will be funded by government or ONGC—it will be what will be the total cost, part of that will be borne by the company, part of that will be borne by the government. So it is basically to take a part of the risk of exploration from the oil explorer.
- Venezuela is the place where largest oil and gas reserves are found. It is the number one in terms of reserves not the Saudi area. So it is a focus area for ONGC.
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