Oil and Natural Gas Corporation Ltd

ONGC maintains a capital structure with a debt-to-equity ratio of 0.56, indicating a moderate reliance on debt financing. The company's liquidity position is characterized by a current ratio of 0.83, suggesting that its current liabilities exceed its current assets. Despite holding INR 418.32 billion in cash and equivalents, the firm's net cash position is negative after subtracting total debt, signaling potential liquidity constraints.

Profitability metrics for ONGC show a return on equity (ROE) of 3.22% and a return on assets (ROA) of 1.47%. These figures are below the industry median for ROE and ROA in the Oil & Gas Refining and Marketing sector, indicating that the company is underperforming relative to its peers in terms of capital efficiency and asset utilization.

Geographically, ONGC's revenue is primarily concentrated in India, with limited exposure to international markets. The firm's operations are heavily dependent on domestic demand and government policy, which introduces a degree of regulatory and market concentration risk. No material revenue is disclosed from international segments, and the company's exposure to global oil price volatility is primarily through domestic pricing mechanisms.

ONGC's growth trajectory is influenced by its capital expenditure and operating cash flow. The company reported a capital expenditure of INR 52.12 billion and an operating cash flow of INR 98.85 billion in the latest period. While the firm is generating positive cash flow, the capital outlay suggests ongoing investment in infrastructure and exploration. Analysts project a mixed outlook for the next fiscal year, with revenue growth expected to remain modest due to regulatory constraints and market saturation.

Risk factors for ONGC include liquidity constraints, as highlighted by the negative net cash position after debt. The firm's dilution potential is currently low, with no significant share issuance or dilutive events reported in the latest financials. However, the company's reliance on government policy and domestic demand introduces regulatory and market risks that could affect its long-term performance.

Recent events include the release of the latest financial report, which disclosed the firm's operating and capital performance. No major regulatory changes or significant market disruptions were reported in the latest filings. The company's management has emphasized cost optimization and exploration efficiency in recent investor communications, signaling a focus on improving operational margins.

The company's cash conversion ratio of 9.05 is rated best-in-class compared to the cohort median of 1.12.

Analysts project 23.5% upside potential, with a mean price target of 304.0 versus the current market price of 246.25.

Revenue demonstrated strong historical growth with a 16.5% compound annual growth rate over the four-year period ending FY2025.

The company carries a high credit risk flag, indicating significant concerns regarding its ability to meet debt obligations.

Long-term debt increased to 1.88 trillion INR in FY2025, reflecting a rising leverage burden despite stable revenue.

Revenue INR 1.67T, +0,1% YoY; Operating income +5,3% YoY.

• ▍Revenue INR 1.67T, +0,1% YoY
• ▍Operating income +5,3% YoY
• ▍Net income +16,7% YoY
• ▍Net margin 6.0%

Revenue INR 1.58T, −0,9% YoY; Operating income +40,1% YoY.

• ▍Revenue INR 1.58T, −0,9% YoY
• ▍Operating income +40,1% YoY
• ▍Net income +5,4% YoY
• ▍Net margin 6.8%

Revenue INR 1.63T, −3,5% YoY; Operating income +24,2% YoY.

• ▍Revenue INR 1.63T, −3,5% YoY
• ▍Operating income +24,2% YoY
• ▍Net income −1,7% YoY
• ▍Net margin 6.0%

Revenue INR 1.71T, −3,4% YoY; Operating income +1,6% YoY.

• ▍Revenue INR 1.71T, −3,4% YoY
• ▍Operating income +1,6% YoY
• ▍Net income −32,9% YoY
• ▍Net margin 4.3%

Revenue INR 1.67T; Operating income INR 151.80B.

• ▍Revenue INR 1.67T
• ▍Operating income INR 151.80B
• ▍Net margin 5.1%

Revenue INR 1.59T; Operating income INR 123.08B.

• ▍Revenue INR 1.59T
• ▍Operating income INR 123.08B
• ▍Net margin 6.4%

Revenue INR 1.77T; Operating income INR 126.88B.

• ▍Revenue INR 1.77T
• ▍Operating income INR 126.88B
• ▍Net margin 6.2%

Revenue INR 6.63T, +1,6% YoY; Operating income −23,1% YoY.

• ▍Revenue INR 6.63T, +1,6% YoY
• ▍Operating income −23,1% YoY
• ▍Net income −26,3% YoY
• ▍Free cash flow −98,3% YoY
• ▍Net margin 5.5%

Revenue INR 6.53T, −4,6% YoY; Operating income +59,4% YoY.

• ▍Revenue INR 6.53T, −4,6% YoY
• ▍Operating income +59,4% YoY
• ▍Net income +33,9% YoY
• ▍Free cash flow +353,0% YoY
• ▍Net margin 7.5%

Revenue INR 6.85T, +28,8% YoY; Operating income −12,1% YoY.

• ▍Revenue INR 6.85T, +28,8% YoY
• ▍Operating income −12,1% YoY
• ▍Net income −19,4% YoY
• ▍Free cash flow −148,2% YoY
• ▍Net margin 5.4%

Revenue INR 5.32T, +47,5% YoY; Operating income +104,1% YoY.

• ▍Revenue INR 5.32T, +47,5% YoY
• ▍Operating income +104,1% YoY
• ▍Net income +179,2% YoY
• ▍Free cash flow +9 859,3% YoY
• ▍Net margin 8.6%

Revenue INR 3.60T; Operating income INR 250.57B.

• ▍Revenue INR 3.60T
• ▍Operating income INR 250.57B
• ▍Net margin 4.5%