Investors aggressively offloaded shares of Oil and Natural Gas Corporation (ONGC) on Wednesday, following a disappointing set of fourth-quarter results for the 2025-26 financial year. Despite elevated global crude oil prices, the state-owned energy giant failed to meet market estimates, causing its stock price to tumble over 4 percent to an intraday low of ₹275.5 on the BSE.
On Tuesday, ONGC reported a modest 3 percent year-on-year increase in standalone net profit, locking in at ₹6,649.97 crore. This muted growth was primarily driven by a significant contraction in production volumes. Crude oil production declined by 6 percent year-on-year and 3 percent sequentially, while natural gas production slipped by 3 percent year-on-year. Standalone revenue remained relatively flat, hovering at ₹35,928 crore compared to ₹34,982 crore in the corresponding quarter of the previous fiscal year.
The company’s management attributed the operational slowdown to ongoing geological complexities at the 98/2 field in the Eastern offshore, alongside technical challenges at the DUDP project. Total sales for the quarter stood at 4.6 million metric tonnes of crude oil and 3.8 billion cubic metres of natural gas.
Despite the immediate market sell-off, leading global brokerages maintain a cautiously optimistic outlook. Analysts at Macquarie retained an ‘Outperform’ rating with a target price of ₹300, suggesting that ONGC has a firmer path ahead despite a weak fourth quarter. Market participants and analysts are now closely eyeing the upcoming earnings conference call scheduled for later today to gain clearer insights into the company’s production recovery timeline and future growth strategies.
