Are Oil & Natural Gas Corporation Ltd. latest results good or bad?

The latest financial results for Oil & Natural Gas Corporation Ltd. (ONGC) present a mixed picture. For the quarter ended December 2025, the company reported consolidated net sales of ₹1,67,422.93 crores, reflecting a sequential growth of 6.02% compared to the previous quarter. However, year-on-year growth was marginal at just 0.13%. This revenue growth indicates a positive trend in sales performance, albeit at a subdued pace when viewed against the prior year. In contrast, the consolidated net profit for the same quarter was ₹10,015.78 crores, which represents a decline of 7.13% from the previous quarter. This decline in profitability is notable, especially given that the company had experienced a profit increase of 10% in the prior quarter. The operating profit margin, excluding other income, also saw a contraction, falling to 15.13%, down 167 basis points from the previous quarter. This suggests that while sales have increased, the company is facing pressures on its profitability, likely due to rising costs or pricing constraints. The nine-month performance for FY26 indicates a consolidated net profit of ₹30,604.73 crores on revenues of ₹4,88,442.13 crores, showing a year-on-year growth of 6.62% in profit, while revenues saw a slight decline of 0.77%. This demonstrates some resilience in core operations despite the challenges posed by the volatile commodity price environment. Overall, ONGC's recent results highlight a scenario where revenue growth is not translating into proportional profit growth, raising concerns about margin pressures and operational efficiency. The company also experienced an adjustment in its evaluation, reflecting the complexities of its current operational landscape.