ONGC's Q1 Profit Halved Despite Strong Revenue Growth
India's oil major saw revenue jump 26% year-on-year, but profit fell 43% as net profit margin shrank sharply.
ONGC reported a sharp divergence in its Q1 FY27 results, with revenue climbing to over ₹2 lakh crore while profit more than halved sequentially, indicating significant margin pressure.
Oil & Natural Gas Corporation (ONGC) posted a quarter of stark contrasts for Q1 FY27, ending June 2026. While revenue surged on higher volumes or prices, profitability collapsed, highlighting a severe squeeze on earnings from India's largest oil and gas producer.
Revenue grew a robust 25.7% year-on-year to ₹2.05 lakh crore, and even rose 17.9% from the previous quarter. However, profit after tax fell sharply by 43.3% compared to Q1 FY26 and plummeted 52.1% from the March 2026 quarter. This divergence slashed the net profit margin to just 3.2%, down from 7.1% a year ago and 7.9% last quarter.
The recent trajectory shows a clear trend of rising revenue but volatile and now declining profits.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 204,987.35YoY +26% | 173,805.19 | 163,106.33 |
| Profit (₹ Cr) | 6,554.44YoY -43% | 13,677.87 | 11,554.21 |
| Net Profit Margin | 3.2%YoY -55% | 7.9% | 7.1% |
This suggests rising operational or financial costs are outpacing top-line growth. The trailing twelve-month (TTM) net profit margin stands at 6.4%, still well above the latest quarter's figure, indicating this may be a significant dip.
Key Points
- The stock has been largely flat over the past year, returning -0.2%, but has delivered a 32.8% total return (9.9% CAGR) over three years.
- The company maintains a solid balance sheet with a debt-to-equity ratio of 0.38 and a return on equity of 13.9%.
- ONGC trades at a P/E of 8.6, a modest premium to its industry peers.
The immediate challenge for ONGC is to demonstrate it can convert its strong revenue momentum back into sustainable profitability in the coming quarters.
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· ONGC
(BSE)
ISIN: INE213A01029
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