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

• Market Cap: ₹3.55T
• Dividend Yield: 5.21%
• Average Volume (3M): 572.51K
• Price to Earnings (P/E): 7.5
• 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): 7.96
• 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: ₹333.50
• Price Target Upside: 38.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 33.18
• Revenue Forecast (FY): ₹6.23T

• Rating: 72 Outperform
• Price Target: ₹308.00 ▲(27.54% Upside)
• Action: Reiterated Date: 09/18/25
• Date: Action: Reiterated 09/18/25

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

Large domestic E&P scale

ONGC’s scale and role in national energy security provide durable competitive advantages: preferential access to acreage, established infrastructure, and strategic government relationships. Scale lowers per-unit costs, supports long-term contracts and helps sustain production through multi-year projects.

Consistent revenue growth trend

Multi-year top-line growth indicates expanding production or realizations and supports reinvestment capacity. Sustained revenue increases improve funding for capex, joint ventures, and upstream development, strengthening the company’s ability to execute long-life projects and maintain reserves replacement.

Manageable leverage and decent ROE

A moderate debt-to-equity and a double-digit ROE signal prudent capital structure and effective use of equity. This balance reduces refinancing risk, preserves investment flexibility for large upstream projects, and provides a buffer in cyclical downturns while supporting long-term strategic spending.

Negative Factors

Weakening free cash flow

Negative free cash flow growth amid rising capex undermines the company’s ability to self-fund projects, pay sustained dividends, or reduce leverage. Persistently constrained FCF limits strategic flexibility and raises reliance on external financing for long-cycle upstream investments.

Declining net profit margin

A falling net margin reduces earnings resilience to cost inflation and price volatility. Lower retained earnings constrain internal funding for exploration and development, and prolonged margin compression can weaken return metrics and undermine capacity to absorb adverse commodity cycles.

High exposure to global oil price cycles

Material sensitivity to global oil prices makes revenues and cash flows cyclical and less predictable over medium terms. Even with scale and government support, earnings, capex decisions and reinvestment plans remain exposed to commodity swings, limiting long-term financial visibility.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: 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 Positive. The current price of 241.5 is below the 20-day moving average (MA) of 270.48, below the 50-day MA of 250.95, and above the 200-day MA of 236.56, indicating a bullish trend. The MACD of 8.19 indicates Positive momentum. The RSI at 61.81 is Neutral, neither overbought nor oversold. The STOCH value of 62.48 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	₹1.09T	16.11	―	4.39%	5.91%	-5.42%
BPCL	76 Outperform	₹1.55T	5.71	―	4.73%	-1.35%	61.80%
OIL	74 Outperform	₹794.84B	14.43	―	2.94%	-1.94%	-28.79%
ONGC	72 Outperform	₹3.55T	7.55	―	5.21%	0.10%	-10.18%
IOC	68 Neutral	₹2.53T	4.41	―	4.90%	-0.93%	42.85%
HINDPETRO	67 Neutral	₹854.11B	6.62	―	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 Says Unusual Share Volumes Reflect Market Forces Amid Global Oil Price Turmoil

Oil & Natural Gas Corporation Limited has clarified to the stock exchanges that it has already made all required disclosures under SEBI’s Listing Obligations and Disclosure Requirements and has no undisclosed information that could explain recent unusual trading volumes in its shares. The company attributed the heightened volume in its stock to broader market-driven factors, pointing to significant upheavals in global oil and gas prices over the past five to six months due to geopolitical tensions, thereby suggesting that trading activity reflects external sector dynamics rather than company-specific developments.

ONGC Assigns Interim Charge of Strategy & Corporate Affairs to Vikram Saxena

Oil & Natural Gas Corporation Limited has announced a leadership change in its strategy function, with the Ministry of Petroleum and Natural Gas assigning additional charge of Director (Strategy & Corporate Affairs) to Vikram Saxena, currently Director (Technology & Field Services). He will hold this dual responsibility for up to three months from March 1, 2026, or until a regular appointee takes over, signaling an interim arrangement to maintain continuity in strategic and corporate oversight.

ONGC Announces Superannuation of Director for Strategy and Corporate Affairs

Oil & Natural Gas Corporation Limited has announced that Arunangshu Sarkar has ceased to serve as Director, Strategy & Corporate Affairs, effective 1 March 2026, after reaching the age of superannuation. The change, disclosed under Indian listing regulations, marks a leadership transition in ONGC’s strategic and corporate affairs function, an area central to its long-term planning and stakeholder engagement, though no successor or immediate operational impacts were detailed.

ONGC Announces Senior Management Change with Executive Director’s Superannuation

Oil & Natural Gas Corporation Limited has announced a change in its senior management ranks, with Executive Director Sanjay Kumar Mazumder retiring from his position effective 1 March 2026. The superannuation of a one-level-below-board executive reflects ongoing leadership transition within the company’s upper management, a routine but notable development for governance continuity and operational oversight in the state-run energy major.

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.