News ArticleONGC’s Credit Ratings Affirmed at IND AAA/Stable and IND A1+ by India Ratings in October 2026
Ratings confirmed for ₹350,000 million bank loans, ₹100,000 million commercial papers, and ₹10,000 million non-convertible debentures reflecting strong government support and operational performance
Oil and Natural Gas Corporation Limited (ONGC) has its bank loan facilities and debt instruments affirmed at top credit ratings by India Ratings and Research in October 2026, reflecting its strong government linkages, operational metrics, and consolidated financial health with stable outlooks for key instruments.
Oil and Natural Gas Corporation Limited
Credit Rating
India Ratings and Research has affirmed Oil and Natural Gas Corporation Limited’s credit ratings for its significant bank loan facilities, proposed commercial paper program, and outstanding non-convertible debentures, underscoring ONGC’s strategic importance to India’s energy sector and strong financial position as of fiscal year ending 2026.
The affirmed ratings include IND AAA/Stable for ₹350,000 million bank loan facilities, IND A1+ for ₹100,000 million proposed commercial papers, and IND AAA/Stable for ₹10,000 million non-convertible debentures.
India Ratings highlights ONGC’s strong operational metrics with domestic oil and gas production, substantial proven reserves totaling 793.3 million metric tonnes of oil equivalent as of March 2026, and a consolidated reserve replacement ratio of 1.17x for the fiscal year 2026.
The company benefits from its majority ownership by the Government of India (58.89% stake in fiscal year 2026), which underpins its strategic role in the country’s energy security and its supportive regulatory environment.
Despite challenges such as declining production trends in some fields and inherent risks linked to the exploration and production business, ONGC maintains healthy credit metrics aided by moderate gearing, large liquid investments, and a high cash balance.
The ratings affirmation also reflects stable subsidiary performance, including key entities like ONGC Videsh Limited, Mangalore Refining and Petrochemicals Limited, and ONGC Petro additions Limited, which contribute positively to ONGC’s consolidated credit profile.
Highlights
- IND AAA/Stable rating affirmed for ₹350,000 million bank loan facilities as of October 2026.
- ₹100,000 million proposed commercial papers rated IND A1+; ₹10,000 million non-convertible debentures rated IND AAA/Stable.
- ONGC holds 58.89% Government of India stake as of fiscal year ending March 2026.
- Proven reserves stand at 793.3 million metric tonnes of oil equivalent, with a 1.17x reserve replacement ratio in FY26.
- Consolidated production in FY26 was 49.15 million metric tonnes of oil equivalent, with standalone production remaining stable.
- ONGC’s consolidated gross debt was ₹1,174 billion at fiscal year-end 2026 with unencumbered cash and liquid balances of ₹312 billion.
Key Data Snapshot
What happened
- India Ratings and Research affirmed ONGC’s credit ratings for its bank loans, commercial papers, and non-convertible debentures in October 2026.
- Ratings confirmed include IND AAA/Stable for ₹350,000 million bank loans, IND A1+ for ₹100,000 million commercial paper program, and IND AAA/Stable for ₹10,000 million non-convertible debentures.
Key details
- ONGC holds a 58.89% stake by the Government of India as of March 2026, supporting its credit profile.
- The company’s consolidated proven oil and natural gas reserves stood at 793.3 million metric tonnes of oil equivalent by March 2026.
- Consolidated production in fiscal year 2026 was 49.15 million metric tonnes of oil equivalent, with slight declines mainly from joint ventures.
- Standalone reserve replacement ratio (2P) was 1.17 times in FY26, indicating healthy replenishment of reserves.
- Consolidated gross debt increased slightly to ₹1,174 billion at fiscal year-end 2026, with unencumbered cash and liquid balances rising to ₹312 billion.
Risks and conditions
- Exploration and production activities have inherent risks including regulatory and geopolitical uncertainties for overseas operations.
- Production challenges exist due to reservoir depletion and operational delays impacting short-term output.
- High capital expenditure requirements continue to be a concern for sustaining reserve replacements and growth.
- Profitability remains sensitive to crude oil and natural gas price fluctuations.
Regulatory and governance context
- ONGC receives blocks on a nomination basis from the Government of India, which also holds majority ownership.
- Government maintains strategic influence, with a minimum shareholding requirement of 51% stipulated in overseas bonds.
- The company has government-nominated directors on its board to ensure alignment with national energy policies.
Highlights
- IND AAA/Stable rating affirmed for ₹350,000 million bank loan facilities as of October 2026.
- ₹100,000 million proposed commercial papers rated IND A1+; ₹10,000 million non-convertible debentures rated IND AAA/Stable.
- ONGC holds 58.89% Government of India stake as of fiscal year ending March 2026.
- Proven reserves stand at 793.3 million metric tonnes of oil equivalent, with a 1.17x reserve replacement ratio in FY26.
- Consolidated production in FY26 was 49.15 million metric tonnes of oil equivalent, with standalone production remaining stable.
- ONGC’s consolidated gross debt was ₹1,174 billion at fiscal year-end 2026 with unencumbered cash and liquid balances of ₹312 billion.
Disclosures
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
- Reserve Bank of India regulations for bank loan facilities and commercial papers
- Securities and Exchange Board of India regulations for non-convertible debentures
Government of India holds 58.89% stake as of FY26
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