O N G C Q4 FY26 Results (NSE: ONGC)
Signal: Margin pressure
The read
Standalone Q4FY26 revenue +2.7% YoY, but operating margin compressed 155bps to 26.9% as exploration write-offs (₹5,109 Cr) surged 149% QoQ and statutory levies rose; PAT +3.1% YoY supported by lower tax (22.0% vs 26.4%) and D&A. Full-year PAT fell 7.6% YoY on lower revenue and higher exploration costs. Capex cycle expanding (CWIP +23% YoY). D&A falling vs rising fixed assets warrants monitoring.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹35,928.18 Cr | 2.7% | 13.9% |
| EBIT | ₹9,668.76 Cr | -2.9% | |
| Net profit | ₹6,649.97 Cr | 3.1% | |
| EPS | ₹5.29 | 3.1% | |
| EBIT margin | 26.91% |
P&L walk
Revenue grew 2.7% YoY, but operating margin contracted 155bps to 26.9% as exploration write-offs surged 149% QoQ; PAT rose 3.1% YoY helped by lower tax rate (22.0% vs 26.4% YoY) and lower depreciation.
Key positives
- Revenue grew 2.7% YoY to ₹35,928 Cr — driven by higher realisations and volumes.
- Effective tax rate fell to 22.0% (vs 26.4% YoY) due to deferred tax credit and prior-year adjustments, boosting PAT.
- Capital work in progress (Oil & Gas) rose 23% YoY to ₹31,689 Cr — capacity expansion underway.
- Final dividend of ₹1/share (20%) recommended, adding to total dividend yield of ~5%.
Key concerns
- Operating margin contracted 155bps YoY to 26.9% — exploration write-offs (₹5,109 Cr) jumped 149% QoQ.
- Full-year PAT declined 7.6% YoY to ₹32,894 Cr despite lower statutory levies, as revenue fell 3.9%.
- D&A fell 7.5% YoY while fixed assets grew — potential under-depreciation flagged by cross-check.
Research and educational content only. Not investment advice.