Oil & Natural Gas Corpn Ltd (Oil Drilling & Exploration) — fundamental analysis, earnings data, and key metrics. PE: 7.2. ROE: 11.7%. This stock is not currently in the Nifty 500 momentum outperformers list.
Based on Q2 FY26 earnings • Updated Apr 18, 2026
What: OpEx reduction target: INR 5,000 crore
“we are targeting that we should have a reduction of about INR 5,000 crore in OpEx. Towards that end, we have already started taking action.”
What: Gas production ramp-up: 10 MMSCMD
“June-July... we would start ramp up of the gas, and we should be starting off for the gas up to 10 MMSCMD would be there in the next year.”
Earnings deceleration risks from management commentary
Trigger: Global market price fluctuations directly impact standalone profitability.
Impact: PAT impact: INR 2,136 crore standalone PAT hit
Management view: Focusing on cost optimization and increasing production volumes to offset lower prices.
Monitor: commodity
Trigger: Regional instability and planned shutdowns affected OVL production.
Management view: Partners have decided to lift force majeure in Mozambique; Sakhalin 1 is expected to normalize in H2.
Monitor: geopolitical
Trigger: Currency volatility impacting financial statements.
Impact: PAT impact: INR 1,045 crore
Management view: Not explicitly detailed as a hedge strategy on call.
Monitor: fx
Key quotes from recent conference calls
“We are hoping at least in '25-26, it should be around where BE oil is around 21.5 million ton. [Previous Oil Production FY26 guidance]”
“Gas number, '25-26, we are hoping around 21 BCM, and then '26-27, we are hoping around 22 BCM. [Previous Gas Production FY26 guidance]”
“under this contract, what has been committed... by BP is that over a ten-year period, we should increase our oil and gas production from MH field by about 60%. [Initiative: Technical Service Partnership (TSP) with BP]”
“This decrease in net profit during Q2 FY26 is on account of lower crude oil price realization of $67.34 per barrel in the current quarter against $78.33 per barrel. [Risk (commodity): HIGH]”
Headline numbers from the latest earnings call
PAT
INR 12,615 crore
Why: The increase in consolidated profit is mainly attributed to the performance of subsidiaries HPCL and MRPL.
Consolidated PAT grew significantly due to subsidiary performance, offsetting a 17.8% decline in standalone PAT caused by lower oil prices.
Other Highlights
• Interim dividend of 120% (INR 6 per share) approved, totaling INR 7,548 crore payout.
• Standalone crude oil production grew 1.2% YoY to 4.630 MMT in Q2 FY26.
• New well gas revenue reached INR 3,352 crore in H1 FY26, a 20% premium over APM prices.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Standalone Crude Oil Production
4.630 MMT
Why: Growth on a QoQ basis despite mature field declines.
Crude Oil Price Realization
$67.34
Why: Lower global crude prices compared to $78.33 in Q2 FY25.
New Well Gas Revenue (H1)
INR 3,352 Cr
Why: Eligible for a 20% premium over domestic APM gas prices.
FY26 Gas Production Guidance
20 BCM
Why: LOWERED from 21 BCM due to project delays at KG-98/2.
KG-98/2 Oil Production
28 kbpd
Why: Well activities and natural declines; down from 30 kbpd a quarter ago.
KG-98/2 Gas Production
3 MMSCMD
Why: Constrained by lack of living quarters and compressor packages.
OPaL Net Debt
INR 25,188 Cr
Why: Management expects this to move down to lower interest debt.
Renewable Energy Target 2030
10 GW
Why: Strategic shift towards green energy; currently at 2.5 GW.
Forward-looking targets from management
Capex Plan
₹35000 Cr
INR 30,000 to INR 35,000 crore
Standalone E&P CapEx
FY27 Standalone Production
Guidance Changes
FY26 Oil Production: 21.5 million ton → 20 million metric tons
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Oil & Natural Gas Corpn Ltd's latest quarterly results (Mar 2026) show
Oil & Natural Gas Corpn Ltd's current PE ratio is 7.2x.
Oil & Natural Gas Corpn Ltd's price-to-book ratio is 0.8x.
Oil & Natural Gas Corpn Ltd's fundamental strength based on key financial ratios
Oil & Natural Gas Corpn Ltd has a debt-to-equity ratio of N/A.
Oil & Natural Gas Corpn Ltd's return ratios over recent years
Oil & Natural Gas Corpn Ltd's operating cash flow is positive (FY2026).
Oil & Natural Gas Corpn Ltd's current dividend yield is 5.10%.
Oil & Natural Gas Corpn Ltd's shareholding pattern (Mar 2026)
Oil & Natural Gas Corpn Ltd's promoter holding has remained stable recently.
Oil & Natural Gas Corpn Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
Oil & Natural Gas Corpn Ltd has 2 key growth catalysts identified from recent earnings analysis
Oil & Natural Gas Corpn Ltd has 3 key risks worth monitoring
In Q2 FY26, Oil & Natural Gas Corpn Ltd's management highlighted
Oil & Natural Gas Corpn Ltd's management has provided the following forward guidance
Oil & Natural Gas Corpn Ltd's most important sub-sector-specific KPIs from the latest concall
Based on quantitative research signals, here is why Oil & Natural Gas Corpn Ltd may be worth studying
Oil & Natural Gas Corpn Ltd investment thesis summary:
Oil & Natural Gas Corpn Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
