ICRA Limited has withdrawn the long-term rating for ONGC’s ₹500 Crore Non-Convertible Debenture (NCD) programme and its unplaced ₹860 Crore NCD programme, as no outstanding amount remains or at the company’s request, respectively. Concurrently, ICRA has reaffirmed the [ICRA] AAA (Stable) rating assigned to the balance NCD programme valued at ₹8,500 Crore, maintaining the highest rating outlook.
Credit Rating Update for ONGC by ICRA
On March 19, 2026, ICRA Limited announced actions concerning the credit ratings for various debt instruments issued by Oil and Natural Gas Corporation Limited (ONGC). These actions involve both the withdrawal and reaffirmation of ratings based on the outstanding amounts of the instruments.
Ratings Withdrawn Due to Zero Outstanding Amounts
ICRA has formally withdrawn the long-term rating of [ICRA] AAA (Stable) previously assigned to the ₹500 Crore Non-Convertible Debentures (NCD) programme. This withdrawal is due to the fact that no amount is currently outstanding against this specific rated instrument, aligning with ICRA’s policy on rating withdrawal.
Furthermore, the rating agency has also withdrawn the [ICRA] AAA (Stable) long-term rating assigned to ONGC’s unplaced NCD programme of ₹860 Crore, which was done at the explicit request of ONGC.
Rating Reaffirmation on Remaining Instruments
Despite the withdrawals, ICRA has reaffirmed the long-term rating of [ICRA] AAA (Stable) assigned to the balance NCD programme amounting to ₹8,500 Crore. This indicates continued confidence in the long-term credit profile associated with this substantial remaining debt component.
Key Financial Strengths Highlighted
ICRA’s rationale for the strong ratings continues to rest on ONGC’s dominant market position as India’s largest domestic producer, contributing around 63% of domestic output. The company benefits from a globally competitive cost structure and a strong financial position, supported by healthy profitability with an Operating Profit Margin (OPM) of 13.40% in FY2025 and 15.92% in 9M FY2026.
The credit profile is further supported by excellent financial flexibility, moderate gearing (Total Debt/OPBDIT of 2.1x in FY2025), and substantial liquid investments. The consolidated structure includes subsidiaries like OVL, MRPL, and HPCL.
Rating Outlook and Sensitivity
The Stable outlook reflects ICRA’s opinion that ONGC will maintain a healthy financial risk profile, supported by its strategic importance to the Government of India, which holds a 58.89% stake. Pressure on the long-term rating could arise from significant deterioration in consolidated credit metrics or a weakening of linkages with the Government of India.
Details on Withdrawn and Reaffirmed Instruments
The rating history shows that several other facilities were subject to reaffirmation and withdrawal on March 20, 2025, including ₹500.00 Crore of non-convertible debentures and a ₹4,500.00 Crore Long term Fund based – Cash credit facility, both receiving the [ICRA]AAA (Stable) rating prior to withdrawal.
Conversely, the ₹7,500.00 Crore NCD programme and ₹1,000.00 Crore NCD programme were both reaffirmed as [ICRA]AAA (Stable) on March 20, 2025, and remain active as part of the ₹8,500 Crore balance instrument.
Source: BSE
