The Oil and Natural Gas Corporation (ONGC), India’s “Maharatna” upstream leader, is proving that traditional energy giants can balance massive green ambitions with aggressive shareholder payouts. Controlling over 70% of India’s domestic crude output, ONGC has recently achieved a record-breaking dividend milestone while committing to a ₹2 lakh crore sustainability roadmap.
The Dividend Hunter’s Case
ONGC has solidified its reputation as a premier dividend stock, driven by its debt-free status and massive operating cash flows (₹73,010 crore in FY25).
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FY26 Record Payout: The company has already declared its highest-ever cumulative interim dividend of ₹15,411 crore for the first nine months of FY26.
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Recent Payout Details: The second interim dividend of ₹6.25 per share (125%) was announced in February 2026, following a ₹6.00 per share interim in late 2025.
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Yield & Consistency: At a share price of approximately ₹290, the year-to-date yield stands at 4.2%, with historical payouts increasing steadily from ₹8.60 in FY21 to ₹12.25 in FY25.
The ₹2 Lakh Crore “Green Pivot”
While its core business remains fossil fuels, ONGC is utilizing its “financial muscle” to lead India’s energy transition with a target of Net Zero Scope-1 and Scope-2 emissions by 2038.
| Focus Area | Objective |
| Renewable Capacity | Aiming for 10 GW of solar and wind capacity by 2030. |
| Energy Transition | Investing in green hydrogen, green ammonia, and offshore wind projects. |
| Zero Flaring | Committing ₹5,000 crore by 2030 to eliminate gas flaring. |
| Low-Carbon Assets | Establishing “ONGC Green Limited” to manage wind, solar, and battery storage. |
Operational Turnaround & Growth Catalysts
Beyond dividends, ONGC is reversing a decade-long production decline through strategic technology and deepwater exploration.
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Output Growth: Recorded a 0.9% growth in standalone crude output in FY25—the first increase in nearly ten years.
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“New Well Gas” Premium: Under government guidelines, gas from new wells earns a 20% price premium. This segment already contributes over 18% of gas revenue and is expected to hit 24% by FY27.
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Deepwater Expansion: The KG-DWN-98/2 block is a massive future driver, with gas production expected to ramp up significantly through 2026 and 2027.
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Global Recognition: Recently awarded “Exploration Company of the Year” at India Energy Week 2026.
Investment Verdict
ONGC trades at an EV/EBITDA of 5.0x, a slight premium to its historical median but a discount compared to peers like Oil India. Its high ROCE of 26.5% suggests efficient capital usage even as it navigates the volatile crude market.
Key Takeaway: ONGC is effectively running an “And” strategy—maintaining exploration dominance and scaling green energy—all while maintaining one of the most reliable dividend payout records in the Indian PSU space.
