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Oil & Natural Gas Corporation — Q3 FY26
ONGC reported a strong Q3 FY26 with consolidated PAT of INR 11,946 crore, up 23% YoY, driven by higher gas revenue and lower statutory levies despite a decline in crude oil prices to $61.63/bbl.
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ONGC reported a strong Q3 FY26 with consolidated PAT of INR 11,946 crore, up 23% YoY, driven by higher gas revenue and lower statutory levies despite a decline in crude oil prices to $61.63/bbl. Standalone PAT rose 1.6% to INR 8,372 crore. Key operational highlights include the near-completion of the KG-DWN-98/2 project, with first gas expected in Q1 FY27 and ramp-up to 5-6 MMSCMD by year-end. The Daman Upside project is on track for first gas in March 2026, adding 4-5 MMSCMD. The BP TSP contract has already shown positive results in Mumbai High, arresting decline. Management guided for FY27 production of 42.5 million tonnes (oil & gas equivalent) and CapEx of INR 32,000-33,000 crore. A second interim dividend of INR 6.25/share was declared, bringing cumulative interim dividends to a record INR 15,411 crore. Risk: Sustained low crude prices could pressure upstream margins and delay project economics.
ONGC ने वित्त वर्ष 2026 की तीसरी तिमाही में शानदार प्रदर्शन किया। कंपनी का कुल मुनाफा (PAT) 11,946 करोड़ रुपये रहा, जो पिछले साल की समान तिमाही से 23% ज्यादा है। यह बढ़ोतरी गैस से ज्यादा कमाई और कम सरकारी टैक्स की वजह से हुई, भले ही कच्चे तेल की कीमत घटकर 61.63 डॉलर प्रति बैरल हो गई। कंपनी का अकेला मुनाफा 1.6% बढ़कर 8,372 करोड़ रुपये रहा। KG-DWN-98/2 परियोजना लगभग पूरी हो चुकी है, जिससे अगले वित्त वर्ष की पहली तिमाही में पहली गैस मिलने की उम्मीद है। दमन अपसाइड परियोजना से मार्च 2026 में गैस मिलने लगेगी। कंपनी ने अगले वित्त वर्ष में 42.5 मिलियन टन तेल-गैस उत्पादन का लक्ष्य रखा है। दूसरा अंतरिम लाभांश 6.25 रुपये प्रति शेयर घोषित किया गया है। जोखिम: कच्चे तेल की कीमतें लगातार कम रहीं तो मुनाफा प्रभावित हो सकता है।
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Crude oil production (Q3 FY26)
4.592 MMT
+0.35% YoY (9M)
Standalone crude oil production for Q3 FY26 was 4.592 million metric tons, with cumulative 9M output up 0.35% YoY.
New Well Gas revenue (9M FY26)
INR 5,028 crore
+INR 944 crore vs APM
New Well Gas contributed over 18% of total gas sales revenue, delivering an additional INR 944 crore over APM gas price.
KG-DWN-98/2 gas ramp-up target (FY27 exit)
5-6 MMSCMD
from ~2 MMSCMD currently
First gas expected in Q1 FY27, ramping to 5-6 MMSCMD by end of FY27, with peak guidance of 7-8 MMSCMD.
Daman Upside gas output
4-5 MMSCMD
new contribution
First gas expected from March 2026, with full ramp-up to 4-5 MMSCMD by Q2 FY27.
What Changed vs Last Quarter
NEW
CapEx guidance of INR 32,000-33,000 crore for FY27
ONGC plans to maintain CapEx in the range of INR 32,000-33,000 crore for FY27, focused on exploration and production.
NEW
New Well Gas share to increase to 24% in FY27
Management expects the share of New Well Gas in total gas production to rise from 18% to 24% in FY27.
UPDATED
FY27 production target of 42.5 million tonnes (oil & gas equivalent)
Management guided for standalone production of 42.5 million tonnes in FY27, comprising ~21 million tonnes of oil and ~21.5 million tonnes of gas equivalent.
UPDATED
Cost reduction target of INR 1,000 crore
Through various efficiency measures, ONGC targets reducing costs by INR 1,000 crore in FY27.
DROPPED
FY27 standalone gas production target of 21.5 BCM
Management guided FY27 standalone gas production at 21.5 BCM, up from expected 20 BCM in FY26.
DROPPED
KG 98/2 gas ramp-up to 10 MMSCMD by mid-2026
Gas production from KG 98/2 is expected to ramp up to 10 MMSCMD by June-July 2026 after living quarters installation.
NEW RISK
KG-DWN-98/2 project execution delays
The project has faced delays in module installation; any further delays in hook-up and commissioning could push back first gas and ramp-up timelines.
NEW RISK
GST increase on oil services
The budget raised GST on oil services from 12% to 18% with no input tax credit, increasing operating costs. Management indicated no relief under ORD Amendment.
NEW RISK
OPaL debt and profitability
OPaL carries net debt of INR 23,000-24,000 crore. While EBITDA is positive, turning net profitable depends on petrochemical prices, which remain volatile.
RISK GONE
KG 98/2 oil production decline
Oil production from KG 98/2 fell to 28,000 bpd from 30,000 bpd, and recovery depends on well interventions with uncertain timing.
RISK GONE
Production guidance miss for FY26
Management acknowledged that FY26 oil and gas production will be below initial guidance due to delays in KG 98/2 ramp-up.
RISK GONE
Mozambique project cost escalation
Total project cost for Mozambique LNG may rise above $16-17 billion, requiring additional approvals and partner contributions.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q2 FY26, Q3 FY25, Q4 FY25
Management guided FY27 standalone crude oil production at 21 MMT, up from expected 19.8 MMT in FY26.
Mentioned in Q1 FY26, Q2 FY26, Q4 FY25
Management guided FY27 standalone gas production at 21.5 BCM, up from expected 20 BCM in FY26.
Mentioned in Q1 FY25, Q2 FY25, Q2 FY26
Oil production from KG 98/2 fell to 28,000 bpd from 30,000 bpd, and recovery depends on well interventions with uncertain timing.
Mentioned in Q2 FY25, Q2 FY26
Gas production from KG 98/2 is expected to ramp up to 10 MMSCMD by June-July 2026 after living quarters installation.
Mentioned in Q1 FY26, Q3 FY25
KG Basin production ramp-up delayed from Q2 to Q4 FY26 due to unavailability of living quarter vessel and monsoon. Further delays could impact FY26 production targets.
Fast read
Guidance and risk preview
Management guided for standalone production of 42.5 million tonnes in FY27, comprising ~21 million tonnes of oil and ~21.5 million tonnes of gas eq...
Crude oil prices declined to $61.63/bbl in Q3 FY26 from $72.5/bbl a year ago, impacting revenue.
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