EXCLUSIVE: Rs 10,000 crore investment in Brazil offshore project; Big update on ONGC

Oil and Natural Gas Corporation (ONGC) is preparing for a significant overseas expansion with a proposed investment of around Rs 10,000 crore in Brazil, according to sources familiar with the matter, Zee Business reported.

The investment is likely to be routed through its overseas arm, ONGC Videsh Ltd (OVL), and will focus on acquiring a stake in an offshore oil block in the South American nation.

25 per cent stake in offshore block

Sources told Zee Business that OVL is expected to pick up a 25 per cent stake in the Brazil offshore project. The investment will be structured through a mix of equity and debt, allowing ONGC to diversify funding sources while managing capital allocation.

The move signals ONGC’s continued push to strengthen its global energy portfolio amid rising domestic demand and the need for energy security.

Approval from empowered panel

The proposal has reportedly received clearance from the Empowered Committee of Secretaries (ECoS), a key government body that evaluates large overseas investments by state-run firms.

However, final execution timelines and project specifics remain unclear at this stage.

Company yet to respond

ONGC has not responded to queries sent via email regarding the development.

Q3 Results Highlights

Oil and Natural Gas Corporation (ONGC) reported a 23 per cent year-on-year rise in consolidated net profit to Rs 11,946.42 crore for the December quarter of FY26. This compares with Rs 9,746.54 crore in the same period last year.

The growth in bottom line was supported by better realisations from new wells and lower statutory levies. This helped offset the impact of weaker global crude oil prices during the quarter.

Revenue remains unchanged

Revenue from operations remained largely flat on a year-on-year basis at around Rs 1.67 lakh crore for the quarter under review.

On a standalone basis, the company saw pressure on crude earnings. Realisation per barrel fell more than 10 per cent.

Crude realisation declines, gas improves

ONGC earned $61.63 per barrel in Q3, down from $72.57 per barrel in the year-ago period.

However, natural gas provided some cushion. Gas sales price rose slightly to $6.59 per million British thermal units from $6.50 earlier. This supported overall earnings.

Share price movement

ONGC shares closed at Rs 283.20 on Tuesday, marginally lower by 0.053 per cent for the day.

The stock has shown steady gains across timeframes:

• Up 7 per cent in the past one month
• Up 14 per cent in six months
• Up 19 per cent year-to-date
• Up 13 per cent over the past one year
• Up 176 per cent over the past five years

The stock remains close to its 52-week high of Rs 293.

Shareholding pattern

Promoter holding stayed the same at 58.89 per cent in the March 2026 quarter.

• FII/FPI holding increased from 7.43 per cent to 7.97 per cent.
• The number of FII/FPI investors also went up from 823 to 902.
• Mutual fund holding fell from 8.28 per cent to 7.69 per cent.
• But the number of mutual fund schemes increased from 38 to 42.
• Overall institutional holding rose slightly from 37.42 per cent to 37.57 per cent.