ONGC Quarter1 Results: The public sector company Oil and Natural Gas Corporation (ONGC) declared the first quarter (April-June) results of the current financial year 2025-26 on Wednesday, 30 August 2025. The company’s net profit declined by 10 percent to Rs 8,024 crore, while it was Rs 8,938 crore in the same period a year ago.

According to the company’s statement, the main reason for the decrease in profits is the fall in crude oil prices in the international market and the stable of production from old (mature) oil areas. According to the report, the average sales price of each barrel crude oil extracted from the land and the sea was $ 67.87.

Premium on gas production from new wells

ONGC said that the natural gas emanating from the new wells dug by it gets 20% premium from the APM price fixed by the government. The company said that in the first quarter of FY 2025-26, these wells received revenue of Rs 1,703 crore from gas production, which is Rs 333 crore more than APM price.

New agreement

Meanwhile, ONGC and its subsidiary ONGC Foreign Limited (OVL) have signed an MoU for coordinated marketing works (MOU). The company said that this agreement is the first step towards increasing operations coordination for group companies and customizing marketing efficiency. After the ONGC result, the company’s shares were seen to have a rise and on Wednesday, about 2 percent came up to Rs 239.90.

Also read: Such news came amidst heavy tariffs on India, US President Trump will also be stunned

Disclaimer: (The information provided here is being given only for information. It is necessary to tell here that the investment in the market is subject to risks. Always consult expert before investing as an investor. Abplive.com is never advised to invest money here.)

If you are interested in the stock market, then it is important to keep an eye on the OGC. Actually, Jefferies have retained the ‘BUY’ rating for ONGC and has kept the target price of Rs 375 per share. That is, there is a possibility of an increase of 52 percent from the current level.

The future of ONGC is fantastic!

Foreign brokerage firm Jefferies has made encouraging predictions about ONGC shares. The firm has fixed the target prize of Rs 375 per share by releasing the rating of ‘Buy’ (BUY) on the company’s stock. Experts believe that the company will benefit from improving gas and crude oil prices, which is expected to increase the company’s income (EPS) annually between FY25 and FY27 to 14 percent.

Let us tell you, OGC has targeted an annual increase of 10-12 percent in production between FY26 to FY30, the mainstay will increase production in Mumbai high area. The Jefferies report has given special emphasis that the BP company has a positive approach for ONGC to achieve 40 percent production increase in an area with similar geological structure in Rumella Oil Field of Iraq.

Why can ONGC shares fly?

Indeed, Jefferies believe that the improvement in oil and gas prices may lead to a tremendous bounce in the profits of ONGC. Apart from this, there may be an annual increase of 14 per cent in EPS (Earnings per Share) between FY25-27.

ONGC production growth plan

It is believed that Mumbai will give production boost to High ONGC. Actually, ONGC aims to achieve 10-12 percent compounded growth between FY26-30. Apart from this, by the middle of 2025, ONGC’s crude and gas production will see 5-6 percent annual growth. At the same time, British Petroleum (BP) has already achieved 40 percent production growth in Rumila Oil Field. BP has been included as the Technical Service Partner of ONGC, which can lead to a big bounce in production.

Why is BP’s success important for ONGC?

Actually, the Rumila Oil Field of Mumbai High and Iraq, both of them are geological. BP had increased the production capacity of Rumaila by 40 percent in 8 years. If the ONGC adopts this model in Mumbai High, then the total recovery rate can increase from 30 percent to 50 percent.

ONGC’s big advantage

ONGC hopes that by FY26, 20 percent of gas production will come under the new pricing system ($ 8.5/mmbu) and by FY30 100 % production will be at this rate. At the same time, the prices of base nomination field gas will increase by $ 0.25/mmbu every year, which will further strengthen the company’s profit.

Big profits in crude business too

According to the report, the ONGC is assuming that the windfall tax will not be levied until the price of crude is below $ 100/BBL. This will make it easier for foreign companies to invest. In addition, the new deal in Ayana Power of ONGC points to its expansion in solar energy and green energy. The ONGC aims to achieve 14 % equity returns on investment (IRR), so that the company can get stable profit in the long term.

Will investing in ONGC be beneficial?

Jefferies say that the ONGC shares still have a lot of potential. If the company properly implements its production growth plan and gas-crude pricing reforms, then investors can get tremendous profits.

Disclaimer: (The information provided here is being given only for information. It is necessary to tell here that the investment in the market is subject to risks. Always consult expert before investing as an investor. Abplive.com is never advised to invest money here.)