Why ONGC Share Price is Falling

ONGC has been in focus recently in the Indian stock market due the decline in the share price over the last month and a half.

Since the start of November, the stock has been steadily drifting downwards towards its 52-week low.

So, what's driving down the stock?

Read on...

Falling Crude Oil Prices

The global price of crude oil has been on a steady long-term decline since mid-2022. This has been on the back of rising production and sluggish demand.

Over the past one year, brent crude is down about 17%.

Brent Crude Price - 1 Year

As a commodity producer, the company naturally benefits from the rising price of said commodity, in this case crude oil.

The government does its best to prevent the rise in crude oil prices from negatively impacting consumers, which results is a limit on the company's pricing power. However, the company still benefits overall from rising prices.

Unfortunately, for ONGC, the reverse is also true. Falling crude prices hurt revenues, profits, and cash flows. After bumper years in FY22 and FY23, the company's consolidated revenue has been flat over the last two years.

FY26 hasn't seen much improvement on the revenue front although the company's net profit growth has improved over the last two quarters.

What Next for ONGC?

ONGC's performance hinges on rising crude oil prices and increase in production. The latter is expected to be positive for the company but the former is negative.

The company has made promising new oil and gas discoveries in the Mumbai Offshore basin. This is expected to boost its production capacity over time.

ONGC plans to double its natural gas production over the next 5-6 years, aligning with the Indian government's vision to increase the share of gas in the energy basket from 6.5% to 15%.

To further enhance production, ONGC has entered into strategic partnerships, such as the contract with BP. This will leverage advanced technologies and global best practices at the Mumbai High field. This collaboration is expected to significantly boost domestic oil and gas production.

While the production of oil and gas is expected to increase or at least remain stable, the company will benefit even more if crude oil prices were to rise again.

ONGC is also expanding in the green energy sector. It has set an ambitious target to build a renewable energy portfolio of 10 gigawatts (GW) by 2030.

How shares of ONGC have performed recently

ONGC's shares closed at Rs 235.2 on the BSE today, 15 December 2025. In the last one month, the stock is down 5%.

Over the last one year, the stock is down 7%.

The stock touched its 52-week high of Rs 273.45 on 8 January 2025 and its 52-week low of Rs 205 on 7 April 2025.

ONGC Share Price - 1 Month

About ONGC

ONGC is India's largest oil and gas exploration and production company. It's a dominant player in India's energy sector, contributing around 70-71% of the country's domestic crude oil production and about 84% of natural gas production.

The Maharatna PSU is vertically integrated across the entire oil and gas industry, involved in exploration, development, and production activities across basins in India.

ONGC also has an international subsidiary, ONGC Videsh, which explores and produces oil and gas in 15 countries, expanding India's energy footprint globally. It's Indian subsidiaries include Hindustan Petroleum Corporation Limited and Mangalore Refinery and Petrochemicals.

To know more, check out ONGC fact sheet and latest quarterly results. You can also compare ONGC with its peers on our website.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Happy investing.

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