ONGC posts ₹32,894 cr profit as it eyes new Dahej port venture
The state-owned explorer reported a 7.6% profit dip for FY26 while greenlighting a 50:50 joint venture for a liquid port in Gujarat.
— 2 earlier stories on Oil & Natural Gas Corporation Ltd. →What's new
- FY26 standalone profit fell to ₹32,894 cr from ₹35,610 cr.
- Board approved a 50:50 joint venture with Gujarat Maritime Board for a 5 MMTPA liquid port at Dahej.
- ONGC authorized a $325M parent guarantee for subsidiary ONGBV to cover Shell Brasil abandonment liabilities.
Why this matters
The profit decline reflects the volatility in upstream energy earnings. The new infrastructure play in Dahej signals a move to diversify beyond pure extraction. The $325M guarantee for legacy abandonment liabilities shows the long-tail costs associated with international exploration assets.
What we're watching
- The timeline for the Dahej port development and capital allocation requirements.
- Updates on the PMT JV arbitration, which involves $1,624 million in contingent liabilities.
- Future dividend sustainability given the total payout of ₹13.25 per share.
The full read
ONGC reported a standalone net profit of ₹32,894 crore for FY26, a 7.6% decline from the ₹35,610 crore recorded in the previous year. Revenue for the period stood at ₹132,508 crore. The board approved a 50:50 joint venture with the Gujarat Maritime Board to build a 5 MMTPA liquid port at Dahej. The company also authorized a $325 million parent guarantee for its subsidiary, ONGBV, to satisfy abandonment liabilities owed to Shell Brasil. The audit report flags $1,624 million in contingent liabilities tied to the PMT JV arbitration, alongside legacy tax disputes. Shareholders will receive a total dividend of ₹13.25 per share for the year. The profit contraction and new infrastructure commitments show a company balancing legacy asset management with a push into broader energy-related logistics. The next test is the capital commitment required for the Dahej project.
Questions answered
- What was the total dividend payout for FY26?
- The board recommended a final dividend of ₹1 per share, bringing the total dividend for the year to ₹13.25 per share.
- What is the scope of the new joint venture in Dahej?
- ONGC received in-principle approval to form a 50:50 joint venture with the Gujarat Maritime Board to develop a 5 MMTPA liquid port.
- Why did ONGC provide a $325 million guarantee to Shell Brasil?
- The guarantee covers abandonment liabilities for the BC-10 project on behalf of its subsidiary, ONGC Campos Ltda.
- Are there any major legal or financial risks noted in the audit?
- The audit report includes an emphasis of matter regarding contingent liabilities, specifically a $1,624 million arbitration related to the PMT JV and ongoing disputes over service tax and GST on royalty payments.
Story so far
All notes on ONGC →- 26 May 2026 · 8:53 PM IST ONGC posts ₹32,894 cr profit as it eyes new Dahej port venture
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