Crude oil production (standalone, Q3 FY26)
4.592 MMT
+0.35% YoY (9-month)
Modest growth in crude output; cumulative 9-month production at 13.907 MMT.
OILANDNATURALGAS
Energy
12 Feb 2026
Oil and Natural Gas Corporation Limited — Q3 FY26
ONGC reported a 23% YoY rise in consolidated net profit to ₹11,946 crore in Q3 FY26, driven by higher gas revenue, lower statutory levies, and improved subsidiary performance, despite a 12% drop in crude oil realizations to $61.63/bbl.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
ONGC reported a 23% YoY rise in consolidated net profit to ₹11,946 crore in Q3 FY26, driven by higher gas revenue, lower statutory levies, and improved subsidiary performance, despite a 12% drop in crude oil realizations to $61.63/bbl. Standalone PAT grew 1.6% YoY to ₹8,372 crore. Key operational highlights include the near-completion of KG-DWN-98/2 subsea infrastructure, with first gas expected from April 2026 and ramp-up to 5-6 mmscmd by FY27-end. The Dan-Upside project is on track for first gas in March 2026, adding 4-5 mmscmd. Mumbai High decline has been arrested with BP's technical support, showing early production gains. Management guided for FY27 standalone production of 42.5 million metric tonnes of oil and gas equivalent, with capex of ₹32,000-33,000 crore. A second interim dividend of ₹6.25/share was declared, bringing cumulative interim dividends to a record ₹15,411 crore. Risk: KG basin ramp-up delays could disappoint if commissioning slips.
Key Numbers
New well gas revenue contribution (9-month FY26)
₹5,000+ crore
18% of total gas revenue
Share declined from 21% in H1 due to base effect; absolute revenue grew.
KG-DWN-98/2 peak gas guidance
7-8 mmscmd
First gas from Q1 FY27
All 26 wells drilled; subsea installation complete; ramp-up to 5-6 mmscmd by FY27-end.
OPaL capacity utilization (9-month FY26)
92%
Revenue ₹9,790 crore
Petrochemical plant stabilized; EBITDA of ₹350 crore for 9 months.
Management Guidance
FY27 standalone production target: 42.5 MMT oil and gas equivalent
Management targets 42.5 million metric tonnes of oil and gas equivalent for FY27, with oil at ~21 MMT and gas at ~21.5 MMT.
Management guidance growthFY27 capex guidance: ₹32,000-33,000 crore
Capex for FY27 is expected to remain in the range of ₹32,000-33,000 crore, primarily for exploration and production.
Management guidance capexCost reduction target: ₹1,000 crore additional savings in FY27
Management targets an additional ₹1,000 crore in cost savings through inventory rationalization, logistics optimization, and renewable energy integration.
Management guidance marginsNew well gas share to increase to ~24% by FY27
The share of new well gas in total gas production is expected to rise from 18% to around 24% by FY27, driven by incremental output from nomination fields.
Management guidance growthKey Risks
KG-DWN-98/2 ramp-up delays
Despite installation completion, any further delays in hook-up and commissioning could push first gas beyond Q1 FY27, impacting production targets.
high · analyst_questionCrude oil price volatility
Crude oil prices declined 12% YoY to $61.63/bbl in Q3; sustained low prices could pressure revenue and profitability despite cost measures.
high · data_observationGST increase on oil services
The GST on oil services was raised from 12% to 18%, with no input tax credit relief expected, adding to cost pressures.
medium · management_commentaryOPaL debt overhang
OPaL still carries net debt of ₹23,000-24,000 crore; while profitability is improving, any downturn in petrochemical margins could strain cash flows.
medium · analyst_questionNotable Quotes
We expect that the gas flow from these wells should start from the next quarter which is from April to June onwards and the gas would be ramped up coming towards the end of financial year 27.
The decline has been arrested. There has been an addition to that but figures we'll give you at the end of the year.
We are targeting that we should be reducing our costs by around 1,000 crores by the various measures that we have undertaken.
Frequently Asked Questions
What was Oil and Natural's revenue in Q3 FY26?
Oil and Natural reported revenue of — in Q3 FY26, representing a — change compared to the same quarter last year.
What guidance did Oil and Natural management give for FY27?
FY27 standalone production target: 42.5 MMT oil and gas equivalent: Management targets 42.5 million metric tonnes of oil and gas equivalent for FY27, with oil at ~21 MMT and gas at ~21.5 MMT. FY27 capex guidance: ₹32,000-33,000 crore: Capex for FY27 is expected to remain in the range of ₹32,000-33,000 crore, primarily for exploration and production. Cost reduction target: ₹1,000 crore additional savings in FY27: Management targets an additional ₹1,000 crore in cost savings through inventory rationalization, logistics optimization, and renewable energy integration. New well gas share to increase to ~24% by FY27: The share of new well gas in total gas production is expected to rise from 18% to around 24% by FY27, driven by incremental output from nomination fields.
What are the key risks for Oil and Natural in FY27?
Key risks include KG-DWN-98/2 ramp-up delays — Despite installation completion, any further delays in hook-up and commissioning could push first gas beyond Q1 FY27, impacting production targets.; Crude oil price volatility — Crude oil prices declined 12% YoY to $61.63/bbl in Q3; sustained low prices could pressure revenue and profitability despite cost measures.; GST increase on oil services — The GST on oil services was raised from 12% to 18%, with no input tax credit relief expected, adding to cost pressures.; OPaL debt overhang — OPaL still carries net debt of ₹23,000-24,000 crore; while profitability is improving, any downturn in petrochemical margins could strain cash flows..
Did Oil and Natural meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Oil and Natural Q3 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.