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

• Market Cap: ₹2.96T
• Dividend Yield: 5.21%
• Average Volume (3M): 572.51K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 1.02
• 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: ₹276.67
• Price Target Upside: 17.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ₹263.00 ▲(11.75% 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

Revenue Growth

The consistent revenue growth indicates ONGC's strong market position and ability to capitalize on demand for oil and gas, supporting long-term business stability.

Balance Sheet Health

A stable debt-to-equity ratio suggests reasonable leverage, providing ONGC with financial flexibility to invest in growth opportunities and weather economic fluctuations.

Cash Generation Ability

Strong cash generation relative to net income indicates ONGC's operational efficiency and ability to fund operations and investments without external financing.

Negative Factors

Net Profit Margin Decline

A declining net profit margin may indicate rising costs or pricing pressures, potentially impacting ONGC's profitability and ability to reinvest in business growth.

Free Cash Flow Challenges

Negative free cash flow growth suggests difficulties in sustaining cash reserves after capital expenditures, which could limit ONGC's investment capacity and financial resilience.

Asset Efficiency

Suboptimal asset utilization may hinder ONGC's ability to maximize returns on investments, affecting long-term competitiveness and financial performance.

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: Negative
• Last Price: 235.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 235.35 is below the 20-day moving average (MA) of 238.75, below the 50-day MA of 242.91, and below the 200-day MA of 235.72, indicating a bearish trend. The MACD of -2.86 indicates Positive momentum. The RSI at 40.97 is Neutral, neither overbought nor oversold. The STOCH value of 42.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₹1.13T	10.36	―	4.39%	5.91%	-5.42%
BPCL	76 Outperform	₹1.60T	7.44	―	4.73%	-1.35%	61.80%
OIL	76 Outperform	₹667.15B	11.17	―	2.94%	-1.94%	-28.79%
ONGC	72 Outperform	₹2.96T	8.10	―	5.21%	0.10%	-10.18%
IOC	68 Neutral	₹2.30T	9.03	―	4.90%	-0.93%	42.85%
HINDPETRO	67 Neutral	₹1.01T	7.25	―	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 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.

ONGC Takes Control of CB-OS/2 Block Amidst PSC Extension Denial

The Government of India has directed Oil & Natural Gas Corporation Limited (ONGC) to take control of the CB-OS/2 offshore block, previously managed by a consortium including Vedanta Limited and TATA Petrodyne Ltd, after the extension of the Production Sharing Contract was not accepted. This interim measure aims to ensure the continuity of petroleum operations and safeguard reserves until a new party is awarded the block, highlighting ONGC’s strategic role in maintaining energy stability.