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

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Oil & Natural Gas Corp. Ltd.

(NSE:ONGC)

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Rating:69Neutral

Price Target:INR 254.00▲(12.39% Upside)

Action:reiterated

Date:08/28/26

The score is primarily supported by solid financial performance (improving FY2026 profitability and strong cash generation) and very favorable valuation (low P/E and high dividend yield). These positives are tempered by weak technicals—price below major moving averages with negative MACD—despite oversold RSI/Stoch conditions.

Positive Factors

Scale and Revenue GrowthThe sharp FY2026 revenue increase, combined with ONGC’s very large operating scale, supports stronger earnings capacity and spreads fixed costs across a broad production platform. Sustained volume and development execution remain important to turn this growth into durable expansion.

Negative Factors

Commodity-Driven Earnings VolatilityThe decline and variability in net margins show that profitability remains sensitive to commodity prices, realization mechanisms, taxes, and cost swings. This reduces earnings predictability and can make long-term planning and shareholder distributions less consistent.

Oil & Natural Gas Corp. Ltd. (ONGC) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 2.84T
Dividend Yield: 5.87%
Average Volume (3M): 658.76K
Price to Earnings (P/E): 6.5
Beta (1Y): 0.61
Revenue Growth: 6.95%
EPS Growth: 20.82%
Country: India
Employees: 23,117
Sector: General
Sector Strength: 55
Industry: Oil & Gas Integrated

Oil & Natural Gas Corp. Ltd. Business Overview & Revenue Model

Company Description

Oil and Natural Gas Corporation Limited (ONGC) operates globally in the exploration, development, and extraction of crude oil and natural gas. Its operations are divided into two main segments: Exploration and Production, and Refining & Marketing. Be...

How the Company Makes Money

ONGC primarily makes money by discovering, developing, and producing hydrocarbons and selling them into the market. Its main revenue streams are: (1) Sale of crude oil: ONGC produces crude oil from onshore and offshore fields and earns revenue by sel...

Oil & Natural Gas Corp. Ltd. Financial Statement Overview

Summary

Strong scale with a sharp FY2026 revenue jump (~69%), improving gross/EBITDA margins, and robust FY2026 operating/free cash flow. Constraints are sector-driven cyclicality and volatility in net margins (roughly ~9% in FY2022 vs ~5–6% in FY2025–FY2026), plus softened ROE versus prior peaks.

Income Statement

72Positive

Balance Sheet

66Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	6.62T	6.62T	6.63T	6.02T	6.32T	4.91T
Gross Profit	2.30T	2.15T	1.15T	1.26T	1.05T	1.01T
EBITDA	1.06T	1.18T	891.33B	1.03T	806.53B	765.49B
Net Income	414.24B	414.24B	362.26B	491.44B	367.09B	455.22B
Balance Sheet
Total Assets	7.92T	7.92T	7.59T	7.10T	6.18T	5.85T
Cash, Cash Equivalents and Short-Term Investments	352.86B	352.86B	304.30B	471.93B	371.09B	124.27B
Total Debt	1.74T	1.74T	1.88T	1.61T	1.50T	1.30T
Total Liabilities	3.82T	3.82T	3.84T	3.45T	3.15T	3.02T
Stockholders Equity	3.72T	3.72T	3.43T	3.37T	2.83T	2.60T
Cash Flow
Free Cash Flow	354.57B	715.83B	351.92B	473.61B	351.32B	337.22B
Operating Cash Flow	607.87B	1.13T	908.68B	992.63B	860.62B	782.48B
Investing Cash Flow	-338.30B	-677.91B	-430.22B	-572.67B	-750.95B	-413.30B
Financing Cash Flow	-195.58B	-463.61B	-479.08B	-456.50B	-128.76B	-357.90B

Oil & Natural Gas Corp. Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price226.00

Price Trends

50DMA230.12Negative

100DMA236.18Negative

200DMA253.56Negative

Market Momentum

MACD-1.15Negative

RSI48.03Neutral

STOCH44.56Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ONGC, the sentiment is Neutral. The current price of 226.00 is above the 20-day moving average (MA) of 224.11, below the 50-day MA of 230.12, and below the 200-day MA of 253.56, indicating a neutral trend. The MACD of -1.15 indicates Negative momentum. The RSI at 48.03 is Neutral, neither overbought nor oversold. The STOCH value of 44.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:ONGC.

Oil & Natural Gas Corp. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:ONGC against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:GAIL	72Outperform	INR 1.10T	11.17	―	3.26%	10.38%	15.68%
IN:BPCL	71Outperform	INR 1.23T	7.70	―	7.91%	21.77%	-25.56%
IN:IOC	70Outperform	INR 1.84T	5.33	―	6.35%	22.83%	89.95%
IN:ONGC	69Neutral	INR 2.84T	6.51	―	5.87%	6.95%	20.82%
IN:OIL	61Neutral	INR 737.67B	8.84	―	2.54%	20.37%	27.31%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:RELIANCE	50Neutral	INR 15.75T	21.09	―	0.52%	19.95%	-1.20%

* General Sector Average

Performance Comparison

IN:ONGC and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:ONGC	Oil & Natural Gas Corp. Ltd.	226.00	-18.53	-7.58%
IN:BPCL	Bharat Petroleum Corporation Limited	284.30	-65.68	-18.77%
IN:GAIL	GAIL (India) Limited	168.00	-9.15	-5.16%
IN:IOC	Indian Oil Corp. Ltd.	130.00	-29.27	-18.38%
IN:OIL	Oil India Limited	453.50	27.46	6.45%
IN:RELIANCE	Reliance Industries Limited	1163.55	-313.97	-21.25%

Oil & Natural Gas Corp. Ltd. Corporate Events

ONGC Fined by Stock Exchanges for Board and Committee Non-Compliance

Aug 26, 2026

Oil & Natural Gas Corporation Limited has disclosed that both BSE and the National Stock Exchange have levied fines of ₹14.31 lakh each for non-compliance with multiple SEBI (LODR) provisions related to board composition, board meeting quor...

ONGC Adds Independent Director Archna Thakur to Board

Aug 13, 2026

Oil & Natural Gas Corporation Limited has appointed Dr. Archna Thakur as a non-official independent director on its board, following approval from India’s Ministry of Petroleum and Natural Gas. The appointment is initially as an additional...

ONGC Issues Administrative Corrigendum on Director (Finance) Appointment

Jun 3, 2026

Oil & Natural Gas Corporation Limited issued a clarification regarding its same-day announcement on the appointment of Anupam Agarwal as Director (Finance). The company stated that the Ministry of Petroleum and Natural Gas has corrected the refer...

ONGC Announces Executive Director-Level Changes Ahead of 2026

Jun 1, 2026

Oil & Natural Gas Corporation Limited has announced a change in senior management at the executive director level, effective June 1, 2026. Three executive directors, K. N. Ramesh, M. Porcia and Deep Chandra Pant, have exited the company’s t...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 28, 2026

Oil & Natural Gas Corp. Ltd. AI Stock Analysis

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