ONGC Fixes ₹1.25 Final Dividend Record Date for FY 2024–25 Amid Global Oil Supply Uncertainty

Oil & Natural Gas Corporation (ONGC) has announced September 4, 2025, as the record date for its ₹1.25 final dividend for FY 2024–25. This blog explores ONGC’s fundamentals, technicals, and the impact of geopolitical tensions—especially disruptions in Russian oil exports.

1. Corporate Announcement at a Glance

Oil & Natural Gas Corporation Limited (ONGC), India’s flagship oil PSU and a Maharatna company, has declared Thursday, September 4, 2025, as the date of record to establish which shareholders qualify for the ₹1.25 final dividend for the fiscal year 2024–25.

The final dividend, recommended by the ONGC Board on May 21, 2025, awaits shareholder approval during the upcoming Annual General Meeting (AGM). Investors who hold ONGC shares on or before September 4 will be eligible to receive the dividend. Considering the T+1 settlement cycle, the shares must be purchased by September 3 to qualify.

This final dividend follows earlier interim dividends of ₹6.00 and ₹5.00 per share, taking the total FY 2024–25 payout to ₹12.25 per share, a historic high for ONGC.

2. ONGC’s Financial & Fundamental Strength

a. Dividend Resilience Despite Lower Profits

Despite a year marked by moderate profitability, ONGC has maintained a strong commitment to shareholder returns:

ONGC’s consolidated net profit for Q4 FY25 was estimated at around ₹8,856 crore.
Standalone FY24–25 profit stood close to ₹35,610 crore, reflecting a year-over-year decline of about 12%.
The total dividend of ₹12.25 per share results in a dividend yield of approximately 5.7% at the current market price near ₹236.

The dividend strategy demonstrates ONGC’s financial strength and its role as a dividend-generating blue chip in the energy sector.

b. Expansion and Capital Expenditure

The company has also continued aggressive investment across exploration and green energy:

ONGC drilled 578 wells—the highest in over three decades.
The company undertook a capital expenditure of over ₹62,000 crore.
Investment includes ONGC’s renewable energy ventures and expansion into petrochemical and refining businesses.

This expansion ensures the company’s sustainability as global energy transitions accelerate.

c. Risks to Watch

Despite solid dividends and capex execution, a few headwinds remain:

The year-over-year fall in profit hints at margin pressure and lower average oil realizations.
ONGC’s revenues are highly sensitive to Brent Crude prices.
Being a government-owned company, its operations are sometimes influenced by national policy goals, not always aligned with shareholder maximization.

3. Technical Chart View: ONGC Stock Performance

a. Recent Price Movement

ONGC’s stock recently closed around ₹236.
From its 52-week high near ₹345, the stock has seen a correction of nearly 30%–35%.
The recent retracement reflects both profit-booking after strong past rallies and global crude oil uncertainty.

b. Support and Resistance Zones

Immediate support lies near the ₹230–₹225 zone.
Resistance is visible in the ₹250–₹260 zone.
Sustained trading above ₹260 could open the gate for a reattempt of ₹275–₹285.

c. Indicators and Trend

The RSI is hovering near neutral levels—neither overbought nor oversold.
MACD is flat to mildly bearish, indicating a consolidative phase.

d. Strategy for Traders and Investors

Short-term traders could consider pre-dividend entry for potential upside till ex-date, followed by exit once the price adjusts.
Swing traders may look for accumulation near the ₹225 levels.
Long-term investors can continue to hold, especially those looking for stable dividend income.

4. Geopolitical Insight: The Russian Factor in Global Oil Supply

a. Background of Russia–West Energy Conflict

Since the 2022 Ukraine crisis, energy sanctions against Russia have created severe volatility in global oil supply chains. Russia, one of the world’s top three oil exporters, has often used energy as a diplomatic tool, cutting or redirecting supplies based on geopolitical alliances.

Western nations imposed a price cap and limited purchases from Russia. In return, Russia increased supply to Asia, especially China and India, at discounted prices. However, disruptions due to:

Shipping route restrictions in the Black Sea and Baltic Sea
Western shipping & insurance sanctions
Sabotage of pipelines and terminals

…have continued to push oil prices into volatile territory.

b. How This Affects ONGC and India

India imports over 80% of its crude oil. Any disruption in Russian exports:

Raises India’s overall import bill.
Increases cost pressure on downstream oil companies.
Raises domestic fuel prices and inflation risk.

For ONGC, this means two-sided impacts:

On one hand, a tighter global supply could push Brent prices higher, improving ONGC’s realizations from upstream exploration.
On the other hand, it could hurt demand, government pricing policies, and refinery offtake.

c. Scenario Analysis

Geopolitical Scenario	Brent Crude Outlook	ONGC Revenue Impact
Russia disrupts exports	$90–$100/bbl	Positive for ONGC earnings
Russia floods the Asian market	$65–$70/bbl	Negative for ONGC
Status quo, stable flow	$75–$80/bbl	Neutral to slightly positive

India’s diplomatic balance between the West and Russia will be critical in maintaining stable supply.

5. ONGC's Role in India's Energy Security

ONGC remains India’s most strategic energy asset, not just because of its production volumes, but also due to:

Its 100% ownership in ONGC Videsh, which holds energy assets in 17 countries.
Integration with HPCL (Hindustan Petroleum Corporation Limited) for refining and marketing.
Plans to increase its renewable energy capacity to 10 GW by 2030.

With these moves, ONGC is realigning itself with global clean energy trends while maintaining its upstream oil dominance.

6. What Should Investors Do Now?

a. For Short-Term Traders

Buying before the record date (September 4) may offer short-term dividend play gains.
Expect a small price drop on the ex-dividend date as the stock adjusts.

b. For Long-Term Investors

With a 5.7% dividend yield, ONGC offers great income potential.
Its government backing ensures reasonable stability and policy support.
However, monitor Brent price and geopolitical updates to reassess holdings.

c. Watchlist Factors

Global oil price trajectory (Brent/WTI)
India’s inflation and fuel policy outlook
US interest rate and dollar movement (impacts FPI flows)
ONGC's quarterly profit trends
Russian shipping & energy export disruptions

7. Final Take: A High Dividend in Volatile Times

The ₹1.25 final dividend record date announcement marks the culmination of ONGC’s most generous dividend year ever. It reflects the company’s attempt to maintain investor trust during uncertain times.

While profit moderation poses short-term concerns, ONGC remains a cornerstone in India’s energy security. Its aggressive capital expenditure, global outreach through ONGC Videsh, and focus on renewables give it long-term potential.

Investors with medium to long-term vision may consider ONGC a steady compounder, with strong dividend benefits and room for capital appreciation, especially if global oil prices remain firm.

Author’s Note

This blog is based on public market data, corporate announcements, and geopolitical developments as of August 3, 2025. It aims to educate and inform. Investors must conduct their own analysis or consult financial advisors before making investment decisions.

References

>ONGC record‑date and dividend details for the FY 2024–25 financial year.

>Q4 and full‑year profit, dividend history, capex highlights, drilling activity.

>Technical trading context and share‑price movement data.

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