Shares of Oil and Natural Gas Corporation (ONGC) declined by 2.22% to close at ₹235.66 in Friday’s trading session, making it one of the top losers on the NIFTY 50 index. The drop in share price comes despite a notable rise in consolidated revenue for FY25, signaling that investors remain cautious amid shrinking profitability.

ONGC’s consolidated revenue for the year ending March 2025 surged to ₹6,63,262.31 crore, up from ₹5,91,447.12 crore in FY24, reflecting a year-on-year growth of nearly 12%. However, net profit plunged to ₹37,293 crore, a sharp fall from ₹54,704.81 crore in FY24. This translated to an earnings per share (EPS) of ₹28.80, down from ₹39.13 a year earlier.

On a quarterly basis, ONGC posted revenue of ₹1,70,811.73 crore for Q4FY25, up marginally from ₹1,66,770.63 crore in Q4FY24. However, net profit for the quarter dropped to ₹8,217.12 crore from ₹10,348.93 crore, and the EPS declined to ₹5.82 from ₹8.03, reflecting pressure on margins amid fluctuating energy prices.

Looking at a broader 5-year financial picture:

Revenue has consistently grown from ₹3,04,000.98 crore in FY21 to ₹6,63,262.31 crore in FY25

However, Return on Equity (ROE) declined to 10.54% in FY25 from 14.60% in FY24

Book Value per Share (BVPS) also decreased to ₹273.00 from ₹290.21

In terms of shareholder returns, ONGC declared two interim dividends in FY25—₹6.00 per share in November 2024 and ₹5.00 per share in January 2025. The company last issued bonus shares in 2016 at a 2:1 ratio.

The weakness in ONGC stock today reflects a broader market sentiment of profit-taking in energy and PSU stocks, especially as earnings momentum shows signs of peaking. While the company remains fundamentally strong, the fall in profits and ROE may limit near-term upside for investors.