ICRA Reaffirms 'AAA' Rating for ONGC's ₹8,500 Crore NCDs, Withdraws Ratings for Other Programmes

New Delhi, March 19, 2026: Oil and Natural Gas Corporation Limited (ONGC), the nation's largest crude oil and natural gas producer, has announced a significant update regarding its credit ratings. Rating agency ICRA Limited has reaffirmed the highest safety rating of [ICRA] AAA (Stable) for the company's Non-Convertible Debentures (NCD) programme amounting to ₹8,500 Crore.

However, in a simultaneous action, ICRA has withdrawn its long-term rating assigned to ONGC's ₹500 Crore NCD programme, as no amount is currently outstanding against the instrument. Furthermore, at the request of the company, the rating for its unplaced NCD programme of ₹860 Crore has also been withdrawn. This action is in accordance with ICRA's policy on the withdrawal of credit ratings, which applies when there is no outstanding amount against the rated instrument.

In a regulatory filing to the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on Thursday, ONGC's Company Secretary & Compliance Officer, Shashi Bhushan Singh, confirmed the development.

Strong Financial Profile Underpins 'AAA' Rating

According to the detailed rationale provided by ICRA, the reaffirmation of the 'AAA' rating with a 'Stable' outlook for the ₹8,500 Crore NCD programme reflects ONGC's dominant market position, its globally competitive cost structure, and a healthy financial position.

ICRA's analysis considered the consolidated financials of ONGC, including its key subsidiaries like ONGC Videsh Ltd (OVL), Mangalore Refinery and Petrochemicals Ltd (MRPL), and Hindustan Petroleum Corporation Ltd (HPCL).

The rating agency highlighted several key credit strengths:

Dominant Market Position: As a Maharatna PSU, ONGC contributes around 63% to India's domestic production of crude oil and natural gas, backed by large proven reserves.
Excellent Financial Flexibility: The company benefits from a moderate gearing ratio, large liquid investments (over ₹32,000 crore as of September 2025), and its strategic importance as a sovereign-owned entity, which grants it excellent access to capital markets at competitive rates.
Healthy Profitability: Despite volatility in global crude prices, ONGC has maintained healthy operating profit margins, reported at 13.4% in FY2025 and 15.9% in the first nine months of FY2026.
Strong Liquidity: The company's liquidity position remains robust, with internal accruals expected to adequately fund its significant annual capex plan of around ₹35,000 crore.

Production Outlook and Future Challenges

While acknowledging ONGC's strengths, the report also noted the challenges of increasing production from mature fields like Mumbai High. ICRA observed that both oil and gas volumes are estimated to increase in the future, driven by new fields and redevelopment projects.

Key projects such as the Daman Upside shallow water project are scheduled for commissioning in March-April 2026, which is expected to add approximately 5 million metric standard cubic meters per day (mmscmd) of gas. Additionally, the end of the force majeure in Mozambique in November 2025 provides an upside for its subsidiary OVL, with production expected to commence there by 2028.

Rating Actions Summary

Reaffirmed and Outstanding: [ICRA] AAA (Stable) for NCD programme of ₹8,500 Crore.
Reaffirmed and Withdrawn: [ICRA] AAA (Stable) for NCD programme of ₹500 Crore (no amount outstanding).
Reaffirmed and Withdrawn: [ICRA] AAA (Stable) for NCD programme of ₹860 Crore (unplaced, at company's request).

The 'Stable' outlook reflects ICRA's opinion that ONGC will continue to maintain its healthy financial risk profile, bolstered by its critical role in the Indian energy sector.