Shares of Oil and Natural Gas Corporation (ONGC) declined sharply in trade on Tuesday, May 27, after the state-run oil producer reported a sequential decline in fourth-quarter profitability along with lower production numbers despite higher crude oil realisations.
ONGC shares were trading at Rs 275.15, down 4.3% during the session. The stock opened at Rs 284.20 and touched an intraday low of Rs 275.05 and a high of Rs 284.20. The previous closing price stood at Rs 287.50, while traded volumes remained elevated. The company’s market capitalisation stood at around Rs 3.46 lakh crore.
On the technical front, ONGC’s 52 week high stands at Rs 307.50, while the 52 week low is Rs 228.61.
The stock came under pressure after investors reacted to weaker operational performance and lower profitability in the March quarter.
For Q4 FY26, ONGC reported revenue of Rs 35,928 crore, up 14% quarter-on-quarter from Rs 31,547 crore. EBITDA rose 3% sequentially to Rs 17,774 crore against Rs 17,322 crore in the previous quarter.
However, EBITDA margins contracted sharply to 49.5% from 54.9% in the previous quarter, indicating pressure on operational profitability.
Net profit declined 21% sequentially to Rs 6,650 crore compared to Rs 8,372 crore reported in the December quarter.
The company’s total production also declined 4% quarter-on-quarter to 9.83 MMT from 10.21 MMT.
Meanwhile, crude oil realisation improved significantly during the quarter. ONGC reported crude oil realisation of $78.3 per barrel compared to $63 per barrel in the previous quarter, supported by stronger global crude price trends.
The decline in profitability despite higher revenues and improved crude realisations appeared to weigh on investor sentiment.
The stock also remains in focus amid elevated global oil market volatility linked to tensions surrounding the Strait of Hormuz and West Asia developments.
ONGC share price target
Brokerages tracking ONGC are expected to closely monitor crude oil realisations, domestic production trends, margin trajectory, and government policy developments going forward.
Analysts believe future stock movement may depend on production recovery, crude price stability, and operational margin improvement over the coming quarters.
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