ONGC Videsh Q3 Results 2026: Profit Surge, Sakhalin-1 Stake & ₹6.25 Dividend

Mumbai, February 13, 2026: As the Oil and Natural Gas Corporation (ONGC) released its Q3 FY26 results, market attention shifted from domestic standalone numbers to its overseas arm—ONGC Videsh Limited (OVL). While domestic field production remained largely flat, OVL and consolidated subsidiaries propelled the group’s net profit by 23%.

Following the analyst call on February 13, OVL is emerging as more than just an exploration wing; it is becoming a major Cash-Flow Trigger for the ONGC group.

1. Crude Realization: OVL Outperforms Standalone

Despite a cooling in international crude oil prices compared to last year, OVL demonstrated superior "Pricing Resilience."

• OVL/JV Crude Realization: $63.00 per barrel (Q3 FY26).

• Standalone Realization: $61.63 per barrel (Q3 FY26).

• The Alpha Factor: While standalone realization saw a 15.1% decline from $72.57 a year ago, OVL’s joint ventures provided a significant cushion to the group’s consolidated earnings through its diversified portfolio.

2. Russia Breakthrough: Sakhalin-1 Stake & Dividends

Q3 FY26 marked a pivotal milestone for OVL as the company solidified its presence in its largest Russian asset, Sakhalin-1.

• 20% Stake Formalized: OVL successfully formalized its 20% equity stake in the new Russian operator entity.

• Frozen Dividends: Management confirmed "positive movement" between the Indian and Russian governments to repatriate approximately $550 Million (approx. ₹4,600 Cr) in stuck dividends. There is high optimism that these funds will hit the balance sheet by FY27.

3. The "Next Big Triggers": Venezuela & Mozambique

OVL provided two critical updates that serve as long-term "Value Unlocking" triggers for investors:

• Venezuela Recovery: The Director (Finance) confirmed that OVL is awaiting specific instructions regarding the restart of operations at the San Cristobal (40% stake) and Carabobo-1 (11% stake) projects, following signs of U.S. sanction liberalization. Approximately $550 Million in dividends are currently pending in Venezuela, with a positive outcome expected.

• Mozambique LNG: Groundwork on this mega project has resumed "full-fledged." The consortium is on track to commence LNG production from FY 2028 onwards, which is set to elevate ONGC's gas output to unprecedented levels.

4. Key Financials at a Glance (Q3 FY26)

Investor Verdict: Why Buy the OVL Story?

Experts believe the true "Value Unlocking" for ONGC will materialize as the $1.1 Billion in stuck dividends (from Russia and Venezuela combined) begins to flow back.

• High Yield: With a cumulative dividend payout of ₹15,411 Crore this year, the yield remains attractive at 4-5%, outperforming traditional fixed deposits.

• Production Targets: ONGC is targeting a total production of 42.5 MMT (oil equivalent) in FY27, with OVL's global contribution playing a pivotal role.