More Stories

Informist, Monday, Apr. 27, 2026

--Fitch Ratings: Oil India's upstream EBITDA to rise by around 25% in FY27

--Fitch Ratings: See Oil India's capex intensity at 37% FY27 vs 36% in FY25

--Fitch Ratings: W Asia war seen to be positive for Oil India credit metrics

AHMEDABAD – Fitch Ratings has affirmed Oil India Ltd.'s long-term foreign-currency issuer default rating, senior unsecured ratings and outstanding senior unsecured debt at 'BBB-', the company said in a notice to the exchanges. The rating agency also has affirmed the 'BBB-' rating of Oil India International Pte. Ltd., equating it with its parent on strong strategic and legal linkages.

Fitch also maintained Oil India's standalone credit profile at 'bb+', driven by cost-competitive upstream operations and integration with Numaligarh Refinery Ltd., although constrained by geographical concentration and rising leverage.

The rating is aligned with India's sovereign rating due to Fitch's assessment of a "very likely" probability of government support. The government holds 57% stake in Oil India and exercises strong oversight through board appointments, while the company plays a key role in energy security, contributing around 10% to India's oil and gas production.

Fitch expects Oil India's earnings before interest, tax, depreciation and amortisation net leverage to rise to 2.6 times by 2026-27 (Apr-Mar), driven by high capital expenditure and exploration costs, and remain at 2.7-2.8 times thereafter. The rating agency expects capex intensity to peak at about 37% in FY27 amid upstream investments and refinery expansion, before moderating.

Fitch also expects Oil India's upstream earnings to recover in FY27, supported by a 3-6% production growth and easing exploration costs, following a sharp decline in FY26 due to lower crude prices and elevated geological and geophysical spending. Oil India had proved reserves of 863 million barrels of oil equivalent as of FY25, and oil & gas production of around 149,000 barrels of oil equivalent per day. Its upstream operating profile benefits from lifting costs of $12-$13 per barrel and finding and development costs of around $12 per barrel.

The refining margin of Numaligarh Refinery is also likely to stay above mid-cycle levels in FY27 due to supply disruptions linked to the West Asia military conflict, before industry conditions normalise and hostilities end from FY28. Fitch said the prolonged conflict in West Asia could support Oil India's earnings through higher crude oil prices and better margins. However, it may increase regulatory risks if government intervention increases.

For the quarter ended December, Oil India reported a net profit of INR 8.08 billion on revenue of INR 49.16 billion. Shares of the company closed 0.5% higher at INR 476.20 on the National Stock Exchange.  End

US$1 = INR 94.19

Reported by Sunil Raghu

Edited by Ashish Shirke

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000 /+91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.