ONGC 2.0: Beyond the ₹15,411 Crore Dividend—Why Global Investors are Eyes-on the Andaman Basin

New Delhi: While the retail crowd is busy calculating their ₹6.25 per share dividend, institutional investors are looking at something far more lucrative: ONGC’s structural transformation into a Gas & Green Energy conglomerate. As of February 2026, ONGC is no longer just a "boring PSU." It is currently sitting at a valuation inflection point that mirrors global giants like Shell and BP. Here is the deep-dive analysis into why ONGC is the "Value Pick" of the decade.

1. The 'New Well Gas' Revenue Explosion

The market has largely overlooked a critical figure in the latest reports: ₹5,028 crore. This is the revenue generated solely from "New Well Gas" during the first nine months of FY’26.

The Alpha Factor: New Well Gas now contributes 18% of total gas sales revenue. * The Premium: Unlike older APM gas, this new production fetches a significant premium, shielding ONGC’s margins even if global crude prices stabilize.

2. The Andaman 'Moonshot': Ultra-Deepwater Exploration

On January 27, 2026, ONGC quietly spudded the AND-P-1 well in the Andaman Basin. This isn't just another well; it is a Strategic Stratigraphic Well in one of the world's last frontier ultra-deepwater regions.

Why it matters: If the Andaman Basin shows commercial viability, it will lead to a massive re-rating of the ONGC stock, similar to how Reliance was re-rated after the KG-D6 discovery decades ago.

3. De-Risking via 'ONGC Green Limited'

The biggest "drag" on ONGC’s P/E ratio ($9.21$) has been the ESG (Environmental, Social, and Governance) concern. The formalization of ONGC Green Limited changes the narrative.

The Strategy: By pivoting to Green Hydrogen and Renewables, ONGC is attracting a new class of ESG-compliant Global Funds that previously avoided oil stocks. This shift is the primary driver behind the stock’s resilience at the ₹265–₹280 levels.

4. Supply Chain Sovereignty: The Samsung & Petronet Deals

ONGC’s recent 15-year agreement with Petronet LNG and the shipbuilding contract with Samsung Heavy Industries for Ethane carriers is a masterstroke in backward integration.

The Impact: By securing its own specialized marine logistics for critical feedstock, ONGC is insulating its subsidiary, OPaL, from global supply chain shocks. This moves ONGC from being a "commodity price taker" to a "supply chain master."

The Verdict: The "Yield + Growth" Paradox

Usually, a stock offers either high dividends or high growth. ONGC is currently offering both:

Safety: A cumulative 245% dividend (₹12.25/share) provides a massive cushion against market volatility.
Upside: The completion of 4 major infrastructure projects in the Western Offshore and the KG-98/2 ramp-up are imminent catalysts.

Editor's Note: For the medium-term investor, the February 18th Record Date is the immediate goal. For the long-term wealth creator, the real story lies in the 600 KTPA Ethane handling and the Andaman deepwater results.