ONGC Reports Lower Profits as Oil Prices Decline

Indian state-owned company, the Oil and Natural Gas Corporation Limited (ONGC), has reported a decline in net profit for the April-June quarter of the 2025/2026 fiscal year. The company’s net profit stands at $917 million (approximately 80.24 billion Indian rupees), a drop of 10% compared to the same period last year. This downturn is attributed to falling oil prices and stable production levels.

Oil prices experienced a significant slump of about 10% during this quarter, largely due to high volatility linked to U.S. tariff policies and ongoing tensions in the Israel-Iran conflict. ONGC’s crude realizations fell to $67.87 per barrel, a notable decrease from $80.64 per barrel in the April-June quarter of 2024. Consequently, the company’s revenues declined by 9.3%, totaling $3.65 billion (around 320 billion rupees).

Production Levels Remain Steady

Despite the challenges posed by fluctuating oil prices, ONGC’s production figures showed minimal change. The company recorded a crude output of 4.683 million tons, slightly up from 4.629 million tons during the same quarter last year. Meanwhile, natural gas output remained stable at 4.846 billion cubic meters in the recent quarter.

Looking ahead, ONGC is considering diversification into refining, petrochemicals, liquefied natural gas (LNG) trading, and renewable energy. A senior executive at the company, Arunangshu Sarkar, expressed concerns regarding low oil prices and the anticipated crude supply glut. In an interview with Bloomberg in March, he stated, “Globally, we are heading to a glut in oil supplies which means prices will reduce. It will be difficult for a company like ONGC to survive in a low oil-price regime and the new businesses provide a hedge for such a scenario.”

Future Plans for Diversification

ONGC is actively pursuing the establishment of LNG regasification capacity along India’s western coast and is in discussions for gas offtake agreements with city distributors. The company is also exploring plans for a new refinery. While details remain scarce due to the early stages of the project, reports indicate that ONGC is considering an $8.3 billion refinery and petrochemicals project in India’s most populous state to capitalize on the growing demand for fuel.

These strategic initiatives reflect ONGC’s commitment to adapting to market conditions and ensuring long-term sustainability in an increasingly volatile energy landscape. As the global oil market continues to evolve, ONGC aims to position itself favorably against the backdrop of declining oil prices and shifting consumer demands.