WEBSITE BSE:500312 NSE: ONGC CORPN Inc. Year: 1993 Industry: Oil Exploration My Bucket: Add Stock
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1. Business Overview
Oil & Natural Gas Corporation Ltd. (ONGC) is India's largest crude oil and natural gas company. Its core business model is centered on the exploration, development, and production (E&P) of hydrocarbons across India and in international waters through its subsidiary, ONGC Videsh. ONGC operates across the entire E&P value chain, from conducting seismic surveys and drilling exploratory wells to developing discovered fields and producing crude oil and natural gas. The company primarily makes money by selling the crude oil it produces to domestic refineries and natural gas to power generation plants, fertilizer units, and other industrial consumers.
2. Key Segments / Revenue Mix
ONGC's revenue is primarily derived from its upstream E&P activities. The major components of its revenue mix are:
Crude Oil Sales: Revenue from the sale of crude oil extracted from its onshore and offshore fields. This forms the largest portion of its turnover.
Natural Gas Sales: Revenue generated from the sale of natural gas produced from its various fields.
While ONGC has minor investments in refining (e.g., through its subsidiary Mangalore Refinery and Petrochemicals Ltd. - MRPL), its direct revenue streams are overwhelmingly dominated by the sales of crude oil and natural gas.
3. Industry & Positioning
The Indian oil and gas exploration industry is characterized by high capital intensity, long gestation periods, and significant regulatory oversight. It is dominated by National Oil Companies (NOCs) like ONGC and Oil India Ltd., alongside a growing presence of private and international players under various licensing regimes. ONGC is the largest E&P company in India, accounting for a significant majority of the country's domestic crude oil and natural gas production. It holds the largest acreage for exploration and production in India and is a major global player in terms of reserves and production among E&P companies. Its positioning as a Maharatna Public Sector Undertaking (PSU) gives it a strategic role in India's energy security objectives.
4. Competitive Advantage (Moat)
ONGC possesses several durable competitive advantages:
Scale and Resource Base: Being India's largest E&P company, ONGC has a vast operational scale, extensive proven reserves, and a large portfolio of producing and prospective fields, both onshore and offshore.
High Entry Barriers: The E&P sector requires enormous capital investment, advanced technology, specialized expertise, and long lead times for project development, making it difficult for new players to enter and compete effectively.
Government Backing and Regulatory Support: As a Maharatna PSU, ONGC benefits from implicit government support, preferential access to exploration blocks, and a critical role in national energy policy, which often translates into regulatory advantages.
Extensive Infrastructure: The company owns and operates a vast network of offshore platforms, pipelines, processing facilities, and rigs, representing a significant asset base that is costly and time-consuming to replicate.
5. Growth Drivers
Key factors that can drive ONGC's growth over the next 3-5 years include:
New Field Developments: Successful development and commencement of production from new discoveries, such as the KG-DWN-98/2 block (Krishna Godavari Basin), which are expected to significantly boost crude oil and natural gas output.
Enhanced Oil Recovery (EOR) Projects: Implementation of advanced EOR techniques in mature fields to counter natural decline rates and improve recovery factors.
Global Oil and Gas Prices: A sustained period of higher international crude oil and natural gas prices would directly translate into increased revenue and profitability.
Government Initiatives for Domestic Production: India's push for energy security and reducing import dependence could lead to supportive policies and incentives for increased domestic E&P activities.
Strategic Acquisitions (ONGC Videsh): International asset acquisitions by its subsidiary, ONGC Videsh, can add to its global reserve and production portfolio.
6. Risks
ONGC faces several significant business risks:
Commodity Price Volatility: Fluctuations in international crude oil and natural gas prices directly impact ONGC's revenues, profitability, and investment decisions.
Regulatory and Policy Risks: Changes in government policies related to pricing, royalties, cess, taxation (including windfall taxes), and exploration licensing can significantly affect ONGC's financial performance.
Declining Production from Mature Fields: Many of ONGC's fields are mature, and natural decline rates require continuous investment in EOR and new developments to maintain or increase overall production.
Exploration and Development Risks: High-risk nature of exploration (dry wells, unexpected geological challenges) and potential for cost overruns or delays in large-scale field development projects.
Environmental and Energy Transition Risks: Increasing global pressure for decarbonization and the shift towards renewable energy sources could pose long-term challenges to hydrocarbon demand and operational viability.
Geopolitical Risks: Global conflicts or geopolitical tensions can disrupt supply chains, impact oil prices, and affect international operations of ONGC Videsh.
7. Management & Ownership
ONGC is a Public Sector Undertaking (PSU) with the Government of India as its majority shareholder and promoter. The management consists of experienced professionals, primarily appointed by the government, often with extensive backgrounds in the oil and gas sector. As a PSU, the company's strategic decisions and management appointments are subject to government oversight and approvals. The ownership structure is predominantly held by the Government of India (typically above 50%), with the remainder held by institutional investors (domestic and foreign), mutual funds, and the public.
8. Outlook
ONGC's outlook is a balance of its foundational role in India's energy sector and the inherent volatility of the E&P business. The company is poised to benefit from India's growing energy demand and the government's strategic focus on increasing domestic production to reduce import dependency. Successful execution of major projects, particularly in the deepwater Krishna Godavari basin, and effective implementation of EOR techniques in mature fields are crucial for its production growth trajectory. However, its financial performance remains highly sensitive to global crude oil and natural gas price movements, and it is exposed to regulatory interventions that can impact profitability. While ONGC will likely remain a cornerstone of India's energy security for the foreseeable future, its ability to navigate commodity price volatility, efficiently manage its vast asset base, and adapt to evolving energy transition dynamics will determine its long-term growth and value creation potential.
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Market Cap ₹376591 Cr.
Stock P/E 9.8
P/B 1
Current Price ₹299.4
Book Value ₹ 301.8
Face Value 5
52W High ₹307.5
Dividend Yield 4.09%
52W Low ₹ 228.8
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(Fig in Cr.) | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 147614 | 167357 | 172137 | 168968 | 159331 | 167213 | 170812 | 163108 | 157911 | 167423 |
| Other Income | 2517 | 3756 | 3367 | 2761 | 4186 | 2415 | 2977 | 2573 | 3108 | 3308 |
| Total Income | 150131 | 171113 | 175504 | 171729 | 163517 | 169627 | 173789 | 165681 | 161019 | 170730 |
| Total Expenditure | 119534 | 146996 | 148913 | 147183 | 138745 | 142494 | 148727 | 137201 | 131390 | 142088 |
| Operating Profit | 30597 | 24117 | 26590 | 24547 | 24773 | 27134 | 25061 | 28480 | 29629 | 28643 |
| Interest | 3243 | 3203 | 3608 | 3694 | 3827 | 3750 | 3500 | 3341 | 3411 | 3207 |
| Depreciation | 7079 | 7494 | 8420 | 8501 | 8254 | 9539 | 9043 | 9384 | 9273 | 9388 |
| Exceptional Income / Expenses | 96 | 1 | -1733 | 0 | -24 | 0 | -151 | -19 | -0 | 45 |
| Profit Before Tax | 20372 | 13420 | 12829 | 12352 | 12668 | 13845 | 12367 | 15736 | 16945 | 16093 |
| Provision for Tax | 5260 | 3451 | 3474 | 3349 | 2814 | 3734 | 4150 | 3954 | 4670 | 4244 |
| Profit After Tax | 15112 | 9969 | 9355 | 9003 | 9854 | 10111 | 8217 | 11782 | 12275 | 11849 |
| Adjustments | -1409 | 734 | 677 | 972 | 382 | -1527 | -894 | -1978 | -1490 | -1833 |
| Profit After Adjustments | 13703 | 10703 | 10032 | 9974 | 10235 | 8585 | 7323 | 9804 | 10785 | 10016 |
| Adjusted Earnings Per Share | 10.9 | 8.5 | 8 | 7.9 | 8.1 | 6.8 | 5.8 | 7.8 | 8.6 | 8 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 161212 | 124074 | 282506 | 322706 | 421626 | 396763 | 303892 | 491301 | 632326 | 601581 | 612065 | 659254 |
| Other Income | 27809 | 25769 | 28801 | 26165 | 26564 | 24035 | 22539 | 23025 | 28259 | 33155 | 33739 | 11966 |
| Total Income | 189021 | 149843 | 311307 | 348871 | 448190 | 420797 | 326431 | 514326 | 660585 | 634736 | 645804 | 671219 |
| Total Expenditure | 140754 | 102564 | 249180 | 283892 | 365060 | 359047 | 266528 | 425717 | 573518 | 518724 | 543354 | 559406 |
| Operating Profit | 48267 | 47279 | 62127 | 64979 | 83130 | 61751 | 59903 | 88609 | 87067 | 116012 | 102450 | 111813 |
| Interest | 2864 | 3766 | 3591 | 5621 | 6418 | 8058 | 6176 | 6994 | 9636 | 14624 | 15731 | 13459 |
| Depreciation | 18033 | 16384 | 20219 | 23112 | 23704 | 26635 | 25538 | 26883 | 24581 | 30440 | 35206 | 37088 |
| Exceptional Income / Expenses | 0 | -7943 | 591 | 248 | -1591 | -9028 | 919 | -2105 | -8138 | -1636 | -151 | -125 |
| Profit Before Tax | 27370 | 20052 | 41718 | 39208 | 54846 | 18962 | 30126 | 54091 | 44746 | 73629 | 52398 | 61141 |
| Provision for Tax | 9697 | 6951 | 12548 | 13140 | 20908 | 7506 | 8766 | 4797 | 10700 | 18356 | 14069 | 17018 |
| Profit After Tax | 17673 | 13102 | 29169 | 26068 | 33938 | 11456 | 21360 | 49294 | 34046 | 55273 | 38329 | 44123 |
| Adjustments | 661 | -226 | -4750 | -3962 | -3392 | -653 | -5056 | -3772 | 2663 | -6129 | -2103 | -6195 |
| Profit After Adjustments | 18334 | 12875 | 24419 | 22106 | 30546 | 10804 | 16304 | 45522 | 36709 | 49144 | 36226 | 37928 |
| Adjusted Earnings Per Share | 14.3 | 10 | 19 | 17.2 | 24.3 | 8.6 | 13 | 36.2 | 29.2 | 39.1 | 28.8 | 30.2 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 2% | 8% | 9% | 14% |
| Operating Profit CAGR | -12% | 5% | 11% | 8% |
| PAT CAGR | -31% | -8% | 27% | 8% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | 21% | 22% | 21% | 8% |
| ROE Average | 11% | 14% | 14% | 13% |
| ROCE Average | 14% | 16% | 15% | 14% |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 180454 | 197814 | 194385 | 204019 | 216935 | 205105 | 220981 | 259503 | 282775 | 339069 | 343440 |
| Minority's Interest | 2473 | 2652 | 13292 | 15606 | 18106 | 18406 | 21616 | 23825 | 20608 | 20555 | 30795 |
| Borrowings | 47575 | 40229 | 52772 | 55025 | 52168 | 72932 | 79162 | 88043 | 98360 | 96971 | 98474 |
| Other Non-Current Liabilities | 71009 | 77583 | 96411 | 103411 | 123446 | 85836 | 95560 | 83327 | 80945 | 109674 | 112094 |
| Total Current Liabilities | 56532 | 58734 | 132742 | 126821 | 129758 | 125073 | 123267 | 127365 | 132907 | 169256 | 166842 |
| Total Liabilities | 358044 | 377012 | 489602 | 504881 | 540413 | 507350 | 540585 | 582062 | 615594 | 735616 | 751646 |
| Fixed Assets | 179933 | 166277 | 211125 | 232890 | 230383 | 243884 | 243738 | 254394 | 251092 | 320256 | 340167 |
| Other Non-Current Assets | 119054 | 145100 | 190542 | 189707 | 222566 | 182757 | 203725 | 221678 | 249711 | 275139 | 276682 |
| Total Current Assets | 58499 | 65625 | 87935 | 82276 | 87336 | 80695 | 93105 | 105926 | 114736 | 140142 | 134783 |
| Total Assets | 358044 | 377012 | 489602 | 504881 | 540413 | 507350 | 540585 | 582062 | 615594 | 735616 | 751646 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 12466 | 2768 | -48 | 51 | -45 | 956 | 1664 | 1468 | 2729 | 1229 | -2357 |
| Cash Flow from Operating Activities | 33950 | 46292 | 45780 | 56792 | 61458 | 70593 | 47185 | 78248 | 86062 | 98847 | 90868 |
| Cash Flow from Investing Activities | -30320 | -38283 | -45056 | -67111 | -37332 | -53498 | -39092 | -41330 | -75095 | -57485 | -43022 |
| Cash Flow from Financing Activities | -10641 | -8972 | -1867 | 9909 | -23324 | -16726 | -8239 | -35790 | -12876 | -45009 | -47908 |
| Net Cash Inflow / Outflow | -7010 | -962 | -1143 | -410 | 801 | 368 | -146 | 1129 | -1909 | -3648 | -61 |
| Closing Cash & Cash Equivalent | 5717 | 1832 | 51 | -45 | 956 | 1664 | 1468 | 2729 | 1225 | -2357 | -2298 |
| # | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | 14.29 | 10.03 | 19.03 | 17.23 | 24.28 | 8.59 | 12.96 | 36.19 | 29.18 | 39.06 | 28.8 |
| CEPS(Rs) | 27.82 | 22.98 | 38.48 | 38.32 | 45.82 | 30.28 | 37.28 | 60.55 | 46.6 | 68.13 | 58.45 |
| DPS(Rs) | 9.5 | 8.5 | 9.08 | 6.6 | 7 | 5 | 3.6 | 10.5 | 11.25 | 12.25 | 12.25 |
| Book NAV/Share(Rs) | 140.18 | 154.14 | 151.47 | 158.98 | 172.44 | 163.04 | 175.66 | 206.28 | 224.78 | 269.52 | 273 |
| Core EBITDA Margin(%) | 12.3 | 15.86 | 10.17 | 10.65 | 12.4 | 8.83 | 10.3 | 12.27 | 8.55 | 12.62 | 10.29 |
| EBIT Margin(%) | 18.17 | 17.56 | 13.83 | 12.3 | 13.43 | 6.32 | 10.01 | 11.43 | 7.9 | 13.44 | 10.21 |
| Pre Tax Margin(%) | 16.45 | 14.78 | 12.73 | 10.76 | 12.02 | 4.44 | 8.31 | 10.12 | 6.5 | 11.21 | 7.85 |
| PAT Margin (%) | 10.62 | 9.66 | 8.9 | 7.15 | 7.44 | 2.68 | 5.89 | 9.22 | 4.95 | 8.42 | 5.74 |
| Cash Profit Margin (%) | 21.46 | 21.73 | 15.08 | 13.49 | 12.63 | 8.91 | 12.93 | 14.25 | 8.52 | 13.05 | 11.02 |
| ROA(%) | 4.97 | 3.56 | 6.73 | 5.24 | 6.49 | 2.19 | 4.08 | 8.78 | 5.69 | 8.18 | 5.15 |
| ROE(%) | 10.06 | 6.94 | 14.87 | 13.09 | 16.12 | 5.43 | 10.03 | 20.52 | 12.56 | 17.78 | 11.23 |
| ROCE(%) | 13.31 | 9.98 | 17.5 | 15.33 | 19.31 | 8.37 | 10.98 | 17.27 | 13.96 | 19.42 | 13.71 |
| Receivable days | 38.22 | 36.52 | 11.63 | 13.24 | 11.72 | 10.49 | 12.68 | 12.02 | 10.06 | 10.69 | 11.19 |
| Inventory Days | 27.88 | 27.63 | 22.17 | 30.26 | 26.27 | 29.12 | 39.06 | 33.71 | 26.1 | 27.25 | 30.83 |
| Payable days | 6155.98 | 0 | 98.75 | 75.73 | 64.13 | 54.82 | 69.41 | 54.85 | 50.16 | 57.04 | 63.37 |
| PER(x) | 14.32 | 14.27 | 9.73 | 10.32 | 6.57 | 7.95 | 7.88 | 4.53 | 5.17 | 6.86 | 8.56 |
| Price/Book(x) | 1.46 | 0.93 | 1.22 | 1.12 | 0.93 | 0.42 | 0.58 | 0.79 | 0.67 | 0.99 | 0.9 |
| Dividend Yield(%) | 3.1 | 3.96 | 4.9 | 3.71 | 4.39 | 7.32 | 3.52 | 6.41 | 7.45 | 4.57 | 4.97 |
| EV/Net Sales(x) | 1.86 | 1.65 | 1.08 | 1.02 | 0.72 | 0.49 | 0.79 | 0.63 | 0.46 | 0.75 | 0.71 |
| EV/Core EBITDA(x) | 6.22 | 4.33 | 4.9 | 5.07 | 3.64 | 3.12 | 4.01 | 3.47 | 3.33 | 3.9 | 4.26 |
| Net Sales Growth(%) | -7.6 | -23.04 | 127.69 | 14.23 | 30.65 | -5.9 | -23.41 | 61.67 | 28.7 | -4.86 | 1.74 |
| EBIT Growth(%) | -24.49 | -21.22 | 90.23 | -1.06 | 36.66 | -55.89 | 39.16 | 68.27 | -10.97 | 62.29 | -22.8 |
| PAT Growth(%) | -33.69 | -25.87 | 122.64 | -10.63 | 30.19 | -66.24 | 102.98 | 130.77 | -30.93 | 62.35 | -30.66 |
| EPS Growth(%) | -30.83 | -29.77 | 89.66 | -9.47 | 40.96 | -64.63 | 50.92 | 179.2 | -19.36 | 33.87 | -26.29 |
| Debt/Equity(x) | 0.3 | 0.23 | 0.41 | 0.52 | 0.49 | 0.57 | 0.54 | 0.42 | 0.46 | 0.47 | 0.45 |
| Current Ratio(x) | 1.03 | 1.12 | 0.66 | 0.65 | 0.67 | 0.65 | 0.76 | 0.83 | 0.86 | 0.83 | 0.81 |
| Quick Ratio(x) | 0.85 | 0.95 | 0.44 | 0.41 | 0.4 | 0.38 | 0.39 | 0.41 | 0.53 | 0.51 | 0.45 |
| Interest Cover(x) | 10.56 | 6.33 | 12.62 | 7.98 | 9.55 | 3.35 | 5.88 | 8.73 | 5.64 | 6.03 | 4.33 |
| Total Debt/Mcap(x) | 0.21 | 0.25 | 0.34 | 0.47 | 0.53 | 1.35 | 0.93 | 0.52 | 0.68 | 0.47 | 0.5 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 58.89 | 58.89 | 58.89 | 58.89 | 58.89 | 58.89 | 58.89 | 58.89 | 58.89 | 58.89 |
| FII | 9.19 | 8.88 | 8.57 | 8.12 | 7.53 | 7.12 | 7.09 | 6.98 | 7.42 | 7.97 |
| DII | 29.03 | 29.18 | 29.05 | 29.34 | 29.71 | 30.24 | 30.14 | 30.25 | 29.99 | 29.61 |
| Public | 2.89 | 3.05 | 3.49 | 3.65 | 3.87 | 3.76 | 3.88 | 3.87 | 3.7 | 3.53 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 740.89 | 740.89 | 740.89 | 740.89 | 740.89 | 740.89 | 740.89 | 740.89 | 740.89 | 740.89 |
| FII | 115.65 | 111.67 | 107.77 | 102.15 | 94.74 | 89.51 | 89.15 | 87.83 | 93.38 | 100.33 |
| DII | 365.17 | 367.07 | 365.45 | 369.05 | 373.71 | 380.37 | 379.18 | 380.59 | 377.25 | 372.44 |
| Public | 36.32 | 38.4 | 43.92 | 45.94 | 48.69 | 47.26 | 48.81 | 48.72 | 46.51 | 44.37 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1258.03 | 1258.03 | 1258.03 | 1258.03 | 1258.03 | 1258.03 | 1258.03 | 1258.03 | 1258.03 | 1258.03 |
* The pros and cons are machine generated.
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