- Shares of ONGC fell over 3% after reporting weak Q4 earnings for FY26
- ONGC's profit declined 21% YoY, revenue neared Rs 36,000 crore
- EBITDA dropped 4.5% sequentially to Rs 20,295 crore with margin at 56.5%
Shares of Oil and Natural Gas Corporation Ltd. (ONGC) are facing immense pressure in trade on Wednesday after the company reported its March quarter earnings for the financial year ending March 2026. The stock is trading with cuts of more than 3% compared to Tuesday's closing.
The pressure comes on the back of weak Q4 numbers, with ONGC reporting a profit decline of 21% year-on-year, even as revenue almost reached the Rs 36,000 crore mark.
Ebitda declined 4.5% sequentially to Rs 20,295 crore from Rs 21,247 crore, while EBITDA margin narrowed to 56.5% from 67.4% in the previous quarter. The company notably missed Ebitda estimates for the seventh quarter in a row, owing to higher statutory levies and higher other operating expenses.
Production was also weak. "Geological surprises arising out of reservoir complexities affected the production from the 98/2 Field in Eastern Offshore," the company said. Meanwhile, net profit was lower due to higher exploration write-offs.
Even after a weak Q4, brokerages maintained a bullish call on ONGC, though they did not increase the target price.
Brokerages On ONGC
Jefferies on ONGC
- Jefferies has maintained a ‘Buy' rating on ONGC with a target price of Rs 360.
- The brokerage described Q4FY26 as a soft quarter for the company.
- EBITDA came in 20% below estimates due to higher operating expenses and dry well write-offs.
- Crude oil and gas production remained broadly in line with expectations.
Macquarie on ONGC
- Macquarie has maintained an ‘Outperform' rating on ONGC with a target price of Rs 300.
- The brokerage termed Q4FY26 performance as weak, but sees a firmer growth path ahead.
- Earnings were impacted by lower-than-expected production volumes and higher exploration expenses.
- Oil production volume declined 2% year-on-year in FY26, while gas production fell 1% year-on-year.
ALSO READ: ONGC Q4 Results: Profit Falls 21% Even As Revenue Nears Rs 36,000 Crore; Dividend Declared
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