This Maharatna stock engaged in the exploration, development, and production of crude oil and natural gas, contributing significantly to India’s energy needs, jumped 2 percent after acquiring a 100 percent stake in PTC Energy Limited (PEL) for Rs. 925 crore to expand its renewable energy portfolio.
Stock Price Movement:
With a market capitalization of Rs. 2,90,101.24 crores, the share of Oil and Natural Gas Corporation Limited has reached an intraday high of Rs. 231.25 per equity share, rising nearly around 1.94 percent from its previous day’s close price of Rs. 226.85. Since then, the stock has retreated and is currently trading at Rs. 230.60 per equity share.
What Happened:
ONGC Green Limited (OGL), a subsidiary of ONGC Limited, has acquired 100 percent of PTC Energy Limited (PEL) for Rs. 925 crore. PEL operates in the renewable energy sector with a wind generation capacity of 288.80 MW across Andhra Pradesh, Madhya Pradesh, and Karnataka.
This acquisition helps ONGC expand its renewable energy portfolio, reduce its carbon footprint, and move towards its goal of achieving 10 GW of renewable energy capacity by 2030. The acquisition was completed on March 4, 2025, through cash consideration.
Capex Plans:
ONGC has significantly increased its capital expenditure (Capex) over the years, reaching Rs. 45,335 crore in the first nine months of FY25. For FY26, the company has planned a Capex of Rs. 36,920 crore, focusing on key areas such as development drilling (30 percent), capital projects (38 percent), and exploratory drilling (20 percent).
Additional investments will go into integration projects, surveys, and R&D. This strategic allocation aims to enhance exploration, production, and infrastructure, ensuring long-term growth and sustainability in the energy sector.
Business overview:
ONGC is India’s biggest oil and gas company, producing about 71 percent of the country’s crude oil and natural gas. This crude oil is used by ONGC’s own subsidiaries, HPCL and MRPL, to make petrol, diesel, kerosene, naphtha, and LPG (cooking gas). These fuels are essential for transportation, households, and industries, making ONGC a key player in India’s energy sector.
Recent quarter results:
Oil and Natural Gas Corporation Limited’s revenue has decreased from Rs. 1,67,357 crore in Q3 FY24 to Rs. 1,66,097 crore in Q3 FY25, which has slightly dropped by 0.75 percent. The net profit has also decreased by 6.92 percent from Rs. 10,511 crore in Q3 FY24 to Rs. 9,784 crore in Q3 FY25.
Written By – Nikhil Naik
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