May 22, 2025 | Mumbai — Shares of Oil & Natural Gas Corporation (ONGC) slipped over 1% in Thursday’s trade after the state-run oil major reported a sharp 20% year-on-year decline in its consolidated net profit for the fourth quarter of FY25. The earnings miss has raised investor concerns, despite relatively steady topline performance.
Stock Market Reaction
ONGC stock was trading at ₹246.00, down ₹2.75 or 1.11%, on the BSE. The scrip opened at ₹248.35 and touched an intraday low of ₹244.10. The trading volume stood at over 12 lakh shares during early hours. ONGC’s current market capitalization is approximately ₹3.09 lakh crore.
The counter has been under pressure lately, with a weekly range of ₹252.75 to ₹244.10. The stock has also corrected significantly from its 52-week high of ₹344.60 recorded in August 2024.
Q4 FY25 Earnings: Weak Profitability Despite Revenue Stability
For the quarter ended March 31, 2025, ONGC reported:
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Consolidated Net Profit: ₹8,856.33 crore, down 20.18% from ₹11,096.03 crore in Q4 FY24
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Consolidated Revenue: ₹1,73,788.62 crore, marginally down 0.98% year-on-year
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Standalone Net Profit: ₹6,448.28 crore, down 34.66% from ₹9,869.37 crore
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Standalone Revenue: ₹37,056.92 crore, down 3.25% from ₹38,301.65 crore
The drop in profitability is attributed to lower crude oil realizations and rising production costs. While revenue remained stable, margins were impacted across ONGC’s upstream and downstream operations.
Full-Year FY25 Financials
On a consolidated basis, ONGC posted:
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Annual Net Profit: ₹38,328.59 crore, a steep 30.66% drop from ₹55,273.15 crore in FY24
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Total Income: ₹6,75,655.88 crore, up 1.57% year-on-year
On a standalone basis, for FY25:
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Net Profit: ₹35,610.32 crore, down 12.13% from ₹40,525.96 crore
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Total Income: ₹1,48,325.73 crore, slightly lower by 0.54% than the previous year
Shareholding Pattern
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Promoters (Government of India): 58.89%
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Institutional Investors: 37.36%
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Retail and Other Non-Institutional Investors: 3.76%
Outlook
While ONGC continues to generate healthy revenues from its vast energy portfolio, weakening profitability has become a key concern for stakeholders. Analysts suggest that soft crude prices, volatile global demand, and a high cost structure could keep margins under pressure in the near term.
The government’s push for energy transition and exploration investments, however, offers long-term potential for ONGC if operational efficiency is improved and capital allocation is optimized.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
