Q1 2027 Oil and Natural Gas Corporation Ltd Earnings Call Transcript
Key Points
- Standalone gross revenue surged 45% YoY to INR46,460 crores, with PAT up 112% to INR17,034 crores, marking the highest-ever quarterly PBT of INR22,848 crores.
- New well gas revenue reached nearly INR4,000 crores, contributing 38% of nomination gas revenue and boosting gas's share of standalone revenue to 28%.
- Mumbai High TSP partnership with bp exceeded contractual baselines, with oil at 107% and gas at 113% of baseline, and the model is expanding across Western Offshore.
- Government's Samudra Manthan scheme (INR84,084 crores) supports deepwater exploration, with ONGC already drilling its first well in Mahanadi, reducing exploration cost risk.
- OVL's return of Sakhalin asset and Mozambique force majeure lift have restored profitability, with OVL contributing ~INR1,000 crores per quarter.
- Renewable energy portfolio via OGL reached 2.853 GW, with new solar and wind projects awarded, supporting green energy diversification.
- Consolidated PAT fell to INR6,554 crores due to HPCL's net loss of INR12,265 crores from under-recoveries amid the West Asia crisis.
- KG-DWN-98/2 oil production dropped to ~21,000 bpd due to reservoir complexities, requiring costly well re-entries (over INR500 crores each) and delaying peak output.
- Overall production remained broadly flat YoY, impacted by temporary operational issues like pre-monsoon swells, pipeline replacements, and customer offtake disruptions.
- OPaL posted negative EBITDA of INR57 crores in Q1, hurt by feedstock cost spikes (naphtha up to $1,000) and halted gaseous feed due to the Hormuz crisis.
- Contingent liability for Panna-Mukta-Tapti arbitration has accumulated to ~INR16,000 crores, with ONGC not participating as a claimant, relying on JV outcome applicability.
- Gas sales-to-production ratio declined to 75-76% due to lower offtake from isolated fields, reflecting customer-side disruptions and pricing challenges.
Good afternoon, ladies and gentlemen. I'm Madhuri, moderator for the conference call. Welcome to ONGC's earnings conference call for quarter ended June 30, 2026.
We have with us today Shri Anupam Agarwal, Director Finance, and team, who will interact with investors and analysts to discuss earnings for Q1 of financial year 2026 to 2027. (Operator Instructions) Please note this conference is recorded.
I would now like to hand over the floor to Mr. Shri Anupam Agarwal for his opening remarks.
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Good afternoon, ladies and gentlemen. I'm Anupam Agarwal, Director Finance, ONGC. I welcome you all to ONGC's earnings conference call for the first quarter of FY26, '27. Thank you all for joining us today.
I'm joined here by my colleagues, from ONGC, Mr. Ajay Kumar Singh, President, Planning and Transformation; Mr. Satish Kumar Dwivedi, Chief JV and BD; Mr. Yogish Nayak, Chief Corporate Finance; Dr. Ravinder Singh
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