Oil & Natural Gas Corporation: India Ratings affirms debt at IND AAA

Credit rating
Oil Exploration/Production

Blacklitt Research30 October 20262 min read

A black and white view of a large oil refinery with tall distillation columns, chimneys and pipework, with parked cars in the foreground. — Hans Peters for Anefo, via Wikimedia Commons (CC0). Illustrative image.

Oil & Natural Gas Corporation (NSE: ONGC) had its debt ratings affirmed by India Ratings and Research, which kept bank loan facilities at IND AAA/Stable/IND A1+, proposed commercial papers at IND A1+ and non-convertible debentures at IND AAA/Stable, it said in a filing on 30 Oct 2026.

Key highlights

Bank loan facilities: ₹35,000 crore, IND AAA/Stable/IND A1+, affirmed
Proposed commercial papers: ₹10,000 crore, IND A1+, tenor up to 365 days
Non-convertible debentures: ₹1,000 crore, IND AAA/Stable, affirmed
Government of India holding: 58.89% as of FYE26

The rating action in numbers

Item	Detail
Bank loan facilities	₹35,000 crore, IND AAA/Stable/IND A1+, affirmed
Proposed commercial papers	₹10,000 crore, IND A1+, affirmed, tenor up to 365 days
Non-convertible debentures	₹1,000 crore, IND AAA/Stable, affirmed
NCD ISIN and coupon	INE213A08024, coupon 6.40%, issued 11 Aug 2020, matures 11 Apr 2031
Rating sensitivity	Negative: weakening of linkages with the GoI; positive not applicable
Complexity indicator	Low for bank loans, commercial papers and NCDs

Three instruments affirmed at unchanged ratings levels

India Ratings affirmed all three rated instrument groups, with the amounts shown in the table above. The commercial papers are proposed and carry a tenor of up to 365 days. The debentures are regulated by SEBI and mature on 11 Apr 2031.

What the agency cites: ownership, capex and contingent liabilities

India Ratings says the ratings reflect ONGC's majority ownership and strategic importance to the Government of India, which held 58.89% as of FYE26.

The agency says ONGC's average standalone capex was INR350 billion to 400 billion a year over the past two years and expects this to continue. The company plans capex of around INR300 billion for FY27 and has a standalone long-term repayment obligation of INR48.4 billion in FY27, with nil in FY28. Standalone contingent liabilities were INR715.7 billion at FYE26.

India Ratings expects credit metrics to remain strong over the medium term despite a moderation in profitability in FY26, and expects consolidated profitability to increase in FY27 given elevated crude prices and refining margins amid the West Asia conflict. Consolidated net profit for Q1 FY27 was ₹6,554.44 crore, down 43.3% year on year.

What the affirmation means for Oil & Natural Gas Corporation's shareholders

The affirmation covers bank facilities and debt instruments. It concerns neither a share issue nor a dividend.

The filing does not say whether the rated amounts or outlooks differ from the previous rating, how much of the bank and commercial paper limits has been drawn, or what reasons lie beyond the agency's rationale. No later dated step is given.

Reference: Original filing (PDF)

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