Stocktwits - SEBI-registered advisor A&Y Market Research has flagged a tough quarter for Oil and Natural Gas Corporation (NSE:ONGC), as the state-run energy giant reported a 35% year-on-year drop in consolidated net profit to ₹6,448 crore in March quarter.
The steep fall was primarily driven by a fivefold spike in exploratory cost write-offs, which surged to ₹4,173 crore from ₹794 crore a year ago, despite broadly stable revenues.
The stock fell 2% in Thursday’s trade.
On the technical front, A&Y Market Research notes that ONGC is currently testing technical resistance at the ₹252–254 range, a level that has previously led to pullbacks.
However, a decisive breakout backed by strong volumes could open the path toward target zones of ₹270, ₹285, and ₹300.
They recommend a stop-loss at ₹240 and advise investors to watch for confirmed breakouts before taking long positions.
Beyond financials, ONGC is actively exploring collaborations with global majors such as ExxonMobil, BP (LON:BP), and Shell for its ambitious $5-billion deep-sea drilling project in the Krishna-Godavari (KG) basin. These partnerships leverage advanced technology and operational expertise to unlock the basin’s potential.
ONGC is also navigating a high-stakes legal dispute, as Reliance Industries (NSE:RELI) and its partners have approached the Supreme Court over a $1.729 billion claim related to alleged gas migration from ONGC-operated fields to Reliance’s KG-D6 block.
In the sustainability arena, ONGC plans to invest up to ₹3,500 crore in FY25 to grow its renewable energy portfolio, aiming for 10 GW of capacity by 2030.
Notably, its joint venture, ONGC Tripura Power Company, in partnership with Assam Power Development Corporation, is building a 250 MW battery energy storage system in Assam to support solar integration and enhance grid stability.
Data on Stocktwits shows retail sentiment is ‘bullish’ on the counter amid ‘high’ message volumes.
ONGC sentiment and message volume on May 22 as of 1:00 pm IST. | source: StocktwitsONGC shares have gained 3% year-to-date (YTD).