Oil and Natural Gas Corporation Limited (ONGC) is an Indian central public sector undertaking and the largest government-owned oil and gas explorer and producer in the country. Headquartered in Delhi, ONGC operates under the ownership of the Government of India and the administration of the Ministry of Petroleum and Natural Gas. The company was founded on August 14, 1956, by the Government of India, and in November 2010, it was conferred the prestigious Maharatna status.
ONGC is the largest crude oil and natural gas company in India, contributing around 71% to Indian domestic crude oil production and approximately 84% of natural gas production. It possesses in-house service capabilities across all areas of exploration and production of oil & gas and related oil-field services. India's largest oil producer, ONGC, produces over 1.26 million barrels of oil equivalent per day.
ONGC is vertically integrated across the entire oil and gas industry. It is involved in exploring for and exploiting hydrocarbons in 26 sedimentary basins of India, owns and operates over 11,000 kilometers of pipelines in the country, and operates a total of around 230 drilling and workover rigs. ONGC has discovered 7 out of the 8 producing Indian Basins, adding over 7.15 billion tonnes of In-place Oil & Gas volume of hydrocarbons in Indian basins.
The company has a significant international presence through its subsidiary ONGC Videsh Limited (OVL), which operates projects across multiple countries. Its international subsidiary, OVL, currently has projects in 15 countries, making it India's largest multinational with 35 oil and gas assets in these nations.
ONGC reported mixed results for Q3 FY25 (October-December 2024), with performance impacted by global crude oil price volatility. The company reported a 19.4% decline in its consolidated net profit for the third quarter of FY25, with profit at ₹8,621.69 Crore, down from ₹10,703.13 Crore in the same period last year, mainly due to lower global crude oil prices.
The company's consolidated revenue from operations stood at ₹1,66,096.68 Crore, slightly lower than ₹1,67,356.63 Crore in the same quarter last year. For the full year FY25, sales rose 1.55% to ₹6,63,262.31 Crore compared to ₹6,53,170.77 Crore during the previous year ended March 2024. However, net profit declined 26.29% to ₹36,225.61 Crore in the year ended March 2025, as against ₹49,143.93 Crore during the previous year ended March 2024.
* Revenue (FY25): ₹6,63,262 Crore
* Net Profit (FY25): ₹36,226 Crore
* Q3 FY25 Revenue: ₹1,66,097 Crore
* Q3 FY25 Net Profit: ₹8,622 Crore
* Market Cap: ₹3,08,519 Crore (as of recent data)
Despite financial challenges, ONGC demonstrated operational resilience with improved production metrics. With a focus on enhancing operational efficiency, ONGC has been able to maintain the increasing trend in crude oil production for two consecutive quarters. The standalone crude oil production (excluding condensate) during Q3 FY25 was 4.653 MMT, registering a growth of 2.2% over the corresponding quarter of FY24.
Similarly, the standalone crude oil production during 9M FY25 was 13.858 MMT, with an increase of 1.2% over 9M FY24. On the natural gas front, ONGC has been able to reverse the decline, and an increase is visible in gas production as well. The standalone natural gas production during Q3 FY25 was 4.978 BCM, registering a growth of 0.3% over Q3 FY24.
ONGC has been actively pursuing strategic initiatives to strengthen its market position. With the commissioning of the five oil wells of the P-field of deepwater block KG-DWN-98/2 on December 16, 2024, all oil wells are now successfully flowing, thereby enhancing total oil production to about 35,000 BOPD from thirteen flowing wells of cluster-II.
The company has also ventured into renewable energy through acquisitions. By way of acquisition of PEL through OGL, a wholly-owned subsidiary, ONGC will scale up its investments in the renewable energy sector to achieve its objectives of de-risking its portfolio against long-term disruptions and reducing its carbon footprint by making strategic investments in the energy transition space. ONGC Green acquired 65,41,17,494 equity shares, representing a 100% equity stake in PEL.
The Government of India held a 58.89% stake in ONGC as of March 2025. Life Insurance Corporation of India is the largest non-promoter shareholder in the company with 7.75% shareholding. As of March 31, 2024, the company has 25,847 employees, out of which 2,043 are women (7.9%).
ONGC maintains a healthy dividend distribution policy. The company's board has recommended a final dividend of ₹1.25 per equity share for the financial Year 2024-25, subject to the approval of shareholders in the ensuing Annual General Meeting. The Board has also approved a 2nd interim dividend of 100%, i.e., ₹5.00 on each equity share of ₹5.00. The total payout on this account will be ₹6,290 Crore. The stock is providing a good dividend yield of 5.00%. The company has been maintaining a healthy dividend payout of 37.9%.
ONGC continues to be a cornerstone of India's energy security, maintaining its dominant position in domestic oil and gas production while adapting to evolving market conditions and pursuing strategic growth initiatives across traditional and renewable energy sectors.
