Oil & Natural Gas Corp. Ltd. (ONGC) AI Stock Analysis

• Market Cap: ₹3.20T
• Dividend Yield: 5.21%
• Average Volume (3M): 572.51K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 1.09
• Revenue Growth: 0.10%
• EPS Growth: -10.18%
• Country: IN
• Employees: 25,847
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): 8.58
• Shares Outstanding: 12,580,279,000
• 10 Day Avg. Volume: 449,677
• 30 Day Avg. Volume: 572,506
• PEG Ratio: -0.33
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 8.87
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹310.00
• Price Target Upside: 28.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ₹285.00 ▲(18.01% Upside)

Oil & Natural Gas Corp. Ltd. scores well due to its strong valuation metrics, with an attractive P/E ratio and high dividend yield. Financial performance is solid, though cash flow challenges and technical indicators suggest caution. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Market-leading upstream position and national energy role

ONGC's scale and status as a dominant state-owned upstream producer provide durable competitive advantages: steady domestic demand, preferential access to concessions, and strong government support. These structural factors underpin long-term production visibility and strategic partnerships.

Consistent revenue growth above 10% year-over-year

Sustained double-digit revenue growth reflects expanding production and stable domestic offtake. This trend supports capacity for reinvestment and debt service, and, if maintained, strengthens the firm's ability to fund long-cycle upstream projects and preserve market share over the medium term.

Stable balance sheet with moderate leverage and solid equity base

A moderate debt-to-equity ratio and sizeable equity base give ONGC financial flexibility to fund capital-intensive exploration and development. Positive ROE indicates effective shareholder capital use, helping the company withstand cyclical oil markets and support long-term strategic investments.

Negative Factors

Declining free cash flow and negative FCF growth

Reduced free cash flow amid higher capex weakens the company's ability to self-fund projects, dividends, or unexpected shocks. Over several quarters this can pressure liquidity, increase reliance on external financing, and constrain discretionary investment in growth or renewables transition plans.

Net profit margin contraction to ~5.5%

A lower net margin erodes profitability resilience to oil price swings and cost inflation. Even with healthy gross and EBITDA margins, compressed net margins reduce retained earnings available for capex and debt reduction, making earnings more sensitive to operational or commodity shocks.

Negative EPS growth year-over-year

Negative EPS growth signals pressure on bottom-line earnings that could reflect higher costs, lower net realizations, or one-off items. Persistent EPS declines harm reinvestment capacity and shareholder returns, and may indicate reduced operational efficiency or margin stress over the medium term.

Oil & Natural Gas Corp. Ltd. Business Overview & Revenue Model

Company Description

Oil and Natural Gas Corporation Limited explores for, develops, and produces crude oil and natural gas in India and internationally. It operates through two segments, Exploration and Production, and Refining & Marketing. The company also engages in the refining and marketing of petroleum products; transportation of oil and natural gas; and production of liquefied petroleum gas, butane, ethane/propane, naphtha, kerosene oil, low sulphur heavy stock, aviation turbine fuel, mineral turpentine oil, carbon credits, and diesel. In addition, it generates electric power through 726.6 megawatts (MW) gas-based power project in Tripura; a 51 MW wind power project in Bhuj, Gujarat; and a 102 MW wind power project in Jaisalmer, Rajasthan, as well as generates solar power through a total installed capacity of 31.3 MW. The company was incorporated in 1993 and is based in New Delhi, India.

How the Company Makes Money

ONGC primarily generates revenue through the exploration and production of crude oil and natural gas. The company sells these hydrocarbons primarily to domestic refineries and gas distribution companies at market-determined prices. Revenue is significantly influenced by global oil prices, which can fluctuate based on various factors including geopolitical events and changes in supply and demand dynamics. Key revenue streams include the sale of crude oil, natural gas, and other by-products, along with revenue from the sale of services like drilling and consulting. Furthermore, ONGC has established strategic partnerships and joint ventures with global players in the energy sector, enhancing its operational capabilities and market reach. The company also benefits from government policies that support domestic production, enabling it to maintain a competitive edge in the Indian market.

Oil & Natural Gas Corp. Ltd. Financial Statement Overview

Summary

Oil & Natural Gas Corp. Ltd. demonstrates solid financial performance with strong revenue growth and efficient operations. The balance sheet is stable with manageable debt levels, though there is room for improvement in asset efficiency. Cash flow management presents challenges, particularly in sustaining free cash flow growth.

Income Statement

Oil & Natural Gas Corp. Ltd. has shown strong revenue growth with a 12.13% increase from last year and a consistent rise over the past few years. The gross profit margin stands at 35.69%, indicating healthy profitability. Although the net profit margin has declined to 5.46% from the previous year, it remains within industry standards. EBIT and EBITDA margins are robust, reflecting efficient operations.

Balance Sheet

The company maintains a stable financial position with a debt-to-equity ratio of 0.55, suggesting reasonable leverage. Return on Equity (ROE) is 10.55%, highlighting effective use of shareholder funds. The equity ratio is 45.28%, indicating a solid equity base relative to total assets, though there is room for improvement in asset utilization.

Cash Flow

Operating cash flow to net income ratio is 2.51, showing strong cash generation relative to net income. The free cash flow to net income ratio decreased, suggesting reduced cash available after capital expenditures. The free cash flow growth rate is negative, reflecting challenges in maintaining cash flows amidst increased capital spending.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.58T	6.63T	6.02T	6.32T	4.91T	3.04T
Gross Profit	1.19T	1.15T	1.26T	1.05T	1.01T	657.26B
EBITDA	891.49B	856.92B	991.27B	790.82B	770.42B	542.51B
Net Income	360.21B	362.26B	491.44B	367.09B	455.22B	163.04B
Balance Sheet
Total Assets	0.00	7.59T	7.10T	6.18T	5.85T	5.43T
Cash, Cash Equivalents and Short-Term Investments	326.36B	304.30B	471.93B	371.09B	124.27B	132.82B
Total Debt	0.00	1.88T	1.61T	1.50T	1.30T	1.41T
Total Liabilities	-3.74T	3.84T	3.45T	3.15T	3.02T	3.01T
Stockholders Equity	3.74T	3.43T	3.37T	2.83T	2.60T	2.21T
Cash Flow
Free Cash Flow	0.00	351.92B	473.61B	351.32B	337.22B	42.01B
Operating Cash Flow	0.00	908.68B	992.63B	860.62B	782.48B	471.85B
Investing Cash Flow	0.00	-430.22B	-572.67B	-750.95B	-413.30B	-390.92B
Financing Cash Flow	0.00	-479.08B	-456.50B	-128.76B	-357.90B	-82.39B

Oil & Natural Gas Corp. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 241.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ONGC, the sentiment is Positive. The current price of 241.5 is below the 20-day moving average (MA) of 247.70, below the 50-day MA of 242.31, and above the 200-day MA of 238.17, indicating a bullish trend. The MACD of 6.00 indicates Negative momentum. The RSI at 56.95 is Neutral, neither overbought nor oversold. The STOCH value of 52.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ONGC.

Oil & Natural Gas Corp. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GAIL	77 Outperform	₹1.05T	12.27	―	4.39%	5.91%	-5.42%
BPCL	76 Outperform	₹1.59T	6.37	―	4.73%	-1.35%	61.80%
OIL	74 Outperform	₹786.55B	13.17	―	2.94%	-1.94%	-28.79%
ONGC	72 Outperform	₹3.20T	8.75	―	5.21%	0.10%	-10.18%
IOC	68 Neutral	₹2.32T	9.11	―	4.90%	-0.93%	42.85%
HINDPETRO	67 Neutral	₹963.80B	6.26	―	3.26%	-1.81%	231.75%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Oil & Natural Gas Corp. Ltd. Corporate Events

ONGC JVs Order Ethane Carriers from Samsung Heavy to Secure Feedstock Shipping

ONGC, through its joint ventures with Japan’s Mitsui O.S.K. Lines, has signed shipbuilding contracts with Samsung Heavy Industries in South Korea to construct two Indian-flag Very Large Ethane Carriers, each with a cargo capacity of 100,000 cubic meters. The JV entities, Bharat Ethane One IFSC Pvt. Ltd. and Bharat Ethane Two IFSC Pvt. Ltd., based in GIFT City, will own and operate the vessels to transport around 600 KTPA of ethane from the US to India for ONGC subsidiary OPaL under long-term charter agreements, with delivery slated for FY 2028–29. The move strengthens India’s energy ecosystem by securing specialized marine logistics for critical feedstock, enhancing supply-chain resilience, and building capabilities in a high-value segment of global shipping, in line with national goals of self-reliance and the government’s maritime and energy security vision.

ONGC Strengthens Top Ranks With Appointment of Two New Executive Directors

Oil & Natural Gas Corporation Ltd. has announced changes in its senior management, appointing two seasoned executives, Ashish Bhatnagar and Debasish Mukherjee, as Executive Directors effective 20 January 2026. Both bring more than three decades of experience within ONGC across various locations and roles, with Bhatnagar having a mechanical engineering background and extensive field and managerial exposure, and Mukherjee adding advanced management qualifications, including an MBA and PhD, to his engineering training and materials management expertise, signaling ONGC’s focus on experienced leadership to support its operational and strategic objectives.

ONGC Bolsters Top Ranks With Four New Executive Directors

Oil & Natural Gas Corporation Limited (ONGC) has announced the appointment of four executives to the position of Executive Director, a level immediately below the Board, effective 19 January 2026. The newly appointed Executive Directors are Balraj Kumar Kotta (electronics engineering), Pawan Kumar Jalutharia (mechanical engineering and human resources), Hemant Ramlu Mulka (chemical engineering and production) and Vivek Singh Chand (electrical engineering and international business), each bringing 35–36 years of experience across multiple key ONGC locations and functions. These appointments strengthen ONGC’s senior leadership bench with seasoned technical and managerial talent, signaling a focus on experienced internal leadership to support the company’s operational continuity and strategic execution in India’s energy sector.

ONGC Reappoints Arun Kumar Singh as Chairman for Another Year

Oil & Natural Gas Corporation Limited announced the re-employment of Shri Arun Kumar Singh as Chairman on a contract basis for one year starting December 7, 2025. This decision, approved by the Board of Directors, reinforces ONGC’s leadership stability and strategic direction, given Singh’s extensive experience in the oil and gas industry, including his previous roles as Chairman and Managing Director of Bharat Petroleum Corporation Limited.

ONGC Re-appoints Arun Kumar Singh as Chairman

Oil & Natural Gas Corporation Limited announced the re-employment of Shri Arun Kumar Singh as Chairman on a contract basis for an additional year starting December 7, 2025. This decision, approved by the Board of Directors, underscores ONGC’s strategic continuity in leadership, potentially impacting its operational stability and market positioning positively.

ONGC Reappoints Arun Kumar Singh as Chairman & CEO

Oil & Natural Gas Corporation Limited has announced the re-employment of Shri Arun Kumar Singh as Chairman & CEO for another year starting December 7, 2025. This decision, approved by the Board of Directors, ensures continuity in leadership as ONGC continues to strengthen its position in the oil and gas sector. Singh’s extensive experience and leadership roles in various subsidiaries and industry organizations are expected to positively impact the company’s strategic direction and stakeholder confidence.

ONGC Reappoints Arun Kumar Singh as Chairman for Another Year

Oil & Natural Gas Corporation Limited has announced the re-employment of Shri Arun Kumar Singh as Chairman of the company for an additional year, effective from December 7, 2025. This decision, approved by the Appointment Committee of the Cabinet, ensures continuity in leadership and may impact the company’s strategic direction and operations positively.