Oil and Natural Gas Corporation shares came under pressure in early trade on Wednesday, May 27, after the state-run energy major reported weaker-than-expected March quarter earnings. The stock was trading at ₹277.80, down ₹9.70 or 3.37%, after touching an intraday low of ₹275.50.
The decline comes after ONGC’s Q4 FY26 performance missed analyst estimates on key operational metrics despite reporting sequential revenue growth. Revenue for the quarter stood at ₹35,928 crore, rising 13.9% quarter-on-quarter from ₹31,547 crore, but came slightly below analyst estimates of ₹36,132 crore.
Profit for the quarter came in at ₹6,650 crore, declining 20.6% sequentially from ₹8,372 crore and below analyst estimates of ₹8,567 crore. EBITDA stood at ₹12,666 crore, down 17.1% from ₹15,272 crore in the previous quarter and significantly lower than analyst estimates of ₹17,924 crore.
EBITDA margin also narrowed sharply to 35.3%, compared with 48.4% in Q3 FY26, indicating pressure on operating performance during the quarter.
Brokerage firm Macquarie described the quarter as a “weak print but with a firmer path ahead,” while maintaining its Outperform rating and a target price of ₹300 on the stock. According to the brokerage, ONGC reported lower-than-expected production volumes and higher exploration expenses during the quarter.
Macquarie highlighted that oil production volume declined 2% year-on-year in FY26, while gas production fell 1% year-on-year, factors that weighed on earnings performance.
While near-term sentiment appears weak following the earnings miss, brokerage commentary suggests expectations of improved operational momentum ahead.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice.