ONGC Q2 net profit declines 18% on lower oil prices
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New Delhi: State-owned Oil and Natural Gas Corporation (ONGC) has reported an 18 per cent fall in its second-quarter net profit due to lower oil prices.
The company's net profit stood at Rs 9,848 crore in July-September -- the second quarter of 2025-26 financial year -- compared to Rs 11,984 crore earnings in the same period a year back, ONGC said in a statement.
The fall in profit of India's biggest oil explorer was primarily a decline in crude oil prices -- from $78.33 per barrel in Q2 of FY25 to $67.34 in the current fiscal.
The crude oil that ONGC pumps from the ground and from beneath the seabed is sold to refineries, which process it into fuels like petrol and diesel.
Price of natural gas, which is used to generate electricity, produce fertilizer, power automobiles as CNG and used in household kitchens as cooking fuel, rose 3.8 per cent to $6.75 per million British thermal unit for legacy wells.
The rate for gas from new wells -- which receives a premium to offset additional costs -- dipped to $8.36 per mmBtu in Q2 from $9.42 per mmBtu last year. "Gas from new wells is eligible for a 20 per cent premium over the domestic APM (legacy) gas price. ONGC is actively working to boost output from such wells. During the first half of 2025-26 fiscal (FY'26), revenue from new well gas stood at Rs3,352 crore, delivering an additional Rs651 crore revenue compared to the APM gas price," the statement said.
ONGC produced 4.63 million tonnes of crude oil in Q2, marginally higher than the 4.576 million tonnes output in July-September 2024. Its gas output was flat at 4.918 billion cubic meters.
In H1 (April-September), crude oil production rose to 9.314 million tonnes compared with 9.204 million tonnes in the year-ago period. Gas output was marginally lower at 9.763 bcm.
ONGC said net profit declined 14.6 per cent in April-September 2025 as oil prices fell 17.3 per cent to $66.74 per barrel. Gross revenue in Q2 fell 2.5 per cent to Rs33,031 crore and by 6 per cent to Rs65,033 crore in H1.
The board of the company approved an interim dividend of 120 per cent -- Rs6 on each equity share of Rs5.
"ONGC's ultra-deepwater exploratory drilling campaign is progressing at full pace in the Andaman Offshore region, while seismic data acquisition activities are underway in the deepwater areas of both the East and West coasts," the company said in a statement.
