ONGC's profit jumps 54.44% YoY, but stock falls 4.68%
Other income contributed 30.57% of pre-tax profit, while the tax rate fell 5.29 percentage points YoY.
Filed 26 May 2026, 20:58 IST · after market close · Oil & Natural Gas Corpn Ltd (ONGC)
Key takeaways
- Consolidated net profit rose +54.44% YoY to Rs 13,677.87 cr, helped by higher other income and a lower tax rate.
- Operating margin improved 1.66 percentage points YoY but narrowed 0.54 percentage points QoQ to 14.59%.
- ONGC fell 4.68% on the first reaction day, versus a 1.41% median absolute move after its last eight results.
Price around the results
Other income and tax drove the profit increase
ONGC's consolidated revenue rose +1.75% YoY while expenses fell -0.19%, lifting operating profit by +14.81%. Profit before tax rose +43.32%, also helped by interest costs falling -12.30%. Other income accounted for 30.57% of pre-tax profit, and the tax rate fell 5.29 percentage points YoY, making the net profit increase stronger than the operating improvement.
Sequential margin pressure returned in Q4
QoQ revenue grew +3.81%, but expenses grew faster at +4.48%, narrowing operating margin by 0.54 percentage points. Operating profit was almost flat, rising only +0.08%, while profit before tax increased +15.13% as other income rose +65.18% and interest fell -4.28%. The tax rate was broadly stable QoQ, rising 0.41 percentage points.
Margin has declined for two straight quarters
Operating margin fell from 16.80% in Q2FY26 to 15.13% in Q3FY26 and 14.59% in Q4FY26. The Q4 margin matched the median for the 15 Energy peers that had reported the quarter, placing ONGC at the sector midpoint on this measure.
The market reaction was unusually negative for ONGC
The stock fell 4.68% on the first reaction day and was down 6.94% after five sessions. That was materially larger than ONGC's 1.41% median absolute move after its last eight results; seven of those eight reactions were negative.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,73,805 cr | ₹1,67,423 cr | +3.81% | +1.75% |
| Other income | ₹5,699 cr | ₹3,450 cr | +65.18% | +64.46% |
| Expenses | ₹1,48,449 cr | ₹1,42,088 cr | +4.48% | -0.19% |
| Operating profit | ₹25,356 cr | ₹25,335 cr | +0.08% | +14.81% |
| Operating margin (%) | 14.59% | 15.13% | — | — |
| Interest | ₹3,070 cr | ₹3,207 cr | -4.28% | -12.30% |
| Depreciation | ₹9,345 cr | ₹9,388 cr | -0.46% | +3.34% |
| Profit before tax | ₹18,640 cr | ₹16,190 cr | +15.13% | +43.32% |
| Tax | ₹4,962 cr | ₹4,244 cr | +16.93% | +19.58% |
| Net profit | ₹13,678 cr | ₹11,946 cr | +14.49% | +54.44% |
| EPS (₹) | ₹8.60 | ₹7.96 | +8.04% | +47.77% |
Operating margin of 14.59% compares with a Energy sector median of 14.59% across 15 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -4.68% | -4.65% |
| Next session | -7.69% | — |
| 5 sessions | -6.94% | -4.86% |
| 15 sessions | -14.68% | — |
| 30 sessions | -14.80% | — |
Volume on the results session was 1.57× its 20-day average.
What to watch
- Whether operating margin recovers from 14.59% after two consecutive quarterly declines.
- Whether expenses continue to grow faster than revenue after the QoQ gap of +4.48% versus +3.81%.
- Whether other income remains close to its 30.57% share of pre-tax profit.