Oil and Natural Gas Corporation (ONGC) share price fell 3.5% on Wednesday, 27 May, after the company reported its March-quarter earnings, which were weighed down by lower production and higher exploration write-offs.
The state-owned energy major reported a 3% year-on-year increase in consolidated net profit to ₹6,649.97 crore for the quarter ended March 2026, compared with ₹6,448.28 crore in the year-ago period. However, profit declined sequentially from ₹8,371.85 crore reported in the December quarter.
Revenue from operations rose marginally to ₹35,928.18 crore during the quarter from ₹34,982.23 crore in the corresponding period last year, supported by higher crude oil and natural gas prices.
For the full financial year FY26, ONGC reported a 7.6% decline in net profit to ₹32,894.02 crore, compared with ₹35,610.32 crore in FY25, reflecting operational challenges and higher costs.
A key drag on earnings was the write-off of exploration expenses. During the March quarter, ONGC wrote off ₹4,876.75 crore related to exploratory wells that failed to yield commercially viable hydrocarbon discoveries, higher than the ₹4,173.04 crore written off in the corresponding quarter last year.
For the full year, exploration well write-offs increased to ₹8,235.98 crore, compared with ₹7,479.96 crore in FY25.
Meanwhile, the company’s board recommended a final dividend of Re 1 per equity share for FY26, subject to shareholder approval.
Should you buy or sell?
As per various reports, brokerage firm Jefferies maintained its ‘Buy’ rating on ONGC with a target price of ₹360. The brokerage described the March-quarter performance as soft, noting that EBITDA came in around 20% below expectations due to higher operating expenses and increased dry-well write-offs. However, Jefferies highlighted that crude oil and natural gas production were broadly in line with estimates.
According to various reports, Macquarie retained its ‘Outperform’ rating on ONGC and set a target price of ₹300. The brokerage termed the Q4 performance a weak print, although it sees a firmer operational trajectory ahead. According to Macquarie, earnings were impacted by lower-than-expected production volumes and higher exploration expenses. The brokerage also noted that ONGC’s oil production declined 2% year-on-year in FY26, while natural gas production fell 1% year-on-year.
ONGC share price today
ONGC share price today opened at an intraday high of ₹285 apiece on the BSE, and the stock touched an intraday low of ₹277.40 per share.
Anshul Jain, Head of Research at Lakshmishree, said that ONGC has been consolidating within a narrow 22-day range between 301.5 and 277, indicating a phase of equilibrium after recent volatility. The repeated inability to reclaim the upper band suggests weakening bullish momentum, while the lower end of the range near 277 has emerged as a critical support zone.
“Price structure is now approaching a decisive point, where a closing breach below 277 could trigger long liquidation and accelerate downside pressure. Such a breakdown would likely shift sentiment firmly in favour of bears and open immediate downside potential toward the 258–252 zone. Unless the stock reclaims higher levels with strong participation, the range continues to carry a negative bias,” said Jain.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
