Oil and Natural Gas Corporation (ONGC), India’s leading state-run energy company, reported a subdued performance for the July–September 2025 quarter on 10th November 2025. The firm’s standalone profit dropped 18% year-on-year to ₹9,848 crore, primarily due to weaker crude oil prices. Despite this moderation in earnings, ONGC has reinforced its commitment to shareholders by declaring an interim dividend of ₹6 per equity share, amounting to a total payout of ₹7,548 crore for the fiscal year.
Revenue Performance and Price Realisations
During the quarter, ONGC’s revenue from operations fell 2.5% to ₹33,031 crore, reflecting the downward trend in global crude prices. The company realised $67.34 per barrel from its nominated oil fields — a 14% decline compared with the same period last year. Similarly, realisations from joint venture fields decreased by 12.3%.
However, the performance in the gas segment offered a modest cushion. Natural gas price realisation from nominated fields rose 3.8% to $6.75 per mmbtu, while the average price from new well gas, which is linked to crude oil rates, fell 11.3% to $8.36 per mmbtu.
Production and Operational Updates
ONGC maintained production stability during the quarter, with crude oil output increasing 1.2%. The company also successfully arrested the decline in gas production, underscoring its operational efficiency and strategic focus on maintaining field performance even in a challenging pricing environment.
Strategic Expansion into Renewables and Ethane Transport
Reaffirming its long-term diversification strategy, ONGC’s board approved an equity infusion of up to ₹421.50 crore in Ayana Renewable Power Pvt. Ltd., a renewable energy platform co-owned with NTPC through ONGC Green Limited (OGL). Ayana currently manages 4.1 GW of operational and under-construction renewable assets, marking a significant step in ONGC’s transition towards clean energy.
In another key development, the company announced plans to enter the ethane transportation business through two joint ventures with Mitsui O.S.K. Lines Ltd (MOL). These ventures, structured on a 50:50 shareholding basis, will operate Very Large Ethane Carriers (VLECs) — a move that expands ONGC’s portfolio into the global ethane logistics segment, complementing its existing hydrocarbon business.
Outlook
Despite a challenging pricing environment, ONGC continues to display financial resilience and strategic foresight. Its consistent dividend payout underlines strong cash generation, while the new ventures in renewable power and ethane transport align with its long-term sustainability goals.
As the global energy sector transitions towards cleaner and more diversified portfolios, ONGC’s calibrated approach — balancing traditional hydrocarbon production with renewable investments — positions it well for future growth.
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Conclusion
ONGC’s second-quarter results reflect the global headwinds affecting crude oil prices, yet also highlight the company’s adaptability. By maintaining production efficiency, rewarding shareholders, and expanding into renewable and ethane transport ventures, ONGC is steering its growth journey with both stability and innovation.
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