OILANDNATURALGAS Q2 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
ConCallIQ research layer
Signal, with the source still visible.
Use the controls below to narrow the view, then follow the evidence into the next layer of context.
Revenue
Pending
verification pending
Revenue YoY
—
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's Q2 FY26 standalone PAT declined 17.8% YoY to ₹9,848 crore, driven by lower crude oil price realization ($67.34/bbl vs $78.33/bbl YoY) and reduced interest/dividend income of ₹1,462 crore. However, consolidated PAT rose 28.2% to ₹12,615 crore, aided by subsidiaries HPCL and MRPL. Crude oil production grew marginally by 1.2% to 4.63 MMT, while gas production decline narrowed significantly from -5.35% in Q1 to just -0.4% in Q2, showing stabilization. The new gas portfolio contributed ₹3,352 crore in H1 revenue (21% of total gas revenue) with a 20% APM premium, expanding to 13.4-14% of production volume. FY26 production guidance was trimmed to approximately 20 MMT crude (vs 21 MMT target) and slightly below 21.5 BCM gas, with deferred production expected in Q1 FY27 from KG 98X2 living quarters installation (Dec-Jan) and TSP-driven gains at Mumbai High from January 2027. The company targets ₹5,000 crore cost reduction through logistics optimization, power cost reduction, and renewable energy setup. Key risks include crude price volatility, Mozambique LNG force majeure (ballot expected within days), and Vietnam Block 6.1 cessation from July 2025 due to uneconomics.
Colored figures show movement against the previous available record.
Guidance to track
- Target of 21 million metric tons for FY27, up from expected ~20 MMT in FY26, driven by TSP-led interventions at Mumbai High and well interventions at KG.
- Target of 21.5 BCM for FY27, with Dhan Upside project adding 5 mmscmd in current year and DSF2 adding 4 mmscmd next year.
- Company targeting ₹5,000 crore OPEX reduction through Pipawa port logistics (reducing vessel runs), Surat helicopter operations, diesel optimization, dual-fuel rig conversion, and renewable power plants (18 months to 2 years).
- BP as Technical Service Provider committed to 60% cumulative oil and gas production increase from Mumbai High field over 10-year period, with fixed fee ending January 2027 and full plan by December 2025.
Risks flagged
- Crude oil guidance trimmed to ~20 MMT from 21 MMT target; gas guidance slightly below 21.5 BCM. Production deferment to Q1 FY27 from delayed KG 98X2 living quarters installation (Dec-Jan monsoon period impact).
- Force majeure still not formally lifted pending partner ballot (expected within days); project cost may exceed approved $18.2 billion requiring additional DACF approval. OVL's total exposure ~$8.8 billion including $6.6 billion equity already invested.
- Production ceased from July 1, 2025 as uneconomical; awaiting Vietnam government to develop PC area for potential resumption.
- Oil production at KG 98X2 declined to 28,000 bbl/day from 30,000 bbl/day last quarter due to well activity issues; recovery dependent on intervention results, not guaranteed.
Key quotes
- We are expecting that the production is likely to shift a little bit quarter into that next year... we are expecting again the 21 what we had given we should be approaching 20 million metric tons for crude oil
- We have already invested for the acquisition of RE assets worth Rs 5,000 crore and we are in the process of awarding a job again for an amount of 5,000 crore for building our own asset. Beyond that we are looking for both organic and inorganic ways and we have planned for about 10 GW by 2030.
- Under TSP we are likely to see green shoots from January onwards... what has been committed by BP is that over a 10-year period we should increase our oil and gas production from MH field by about 60%
Research modules