State-owned oil and gas major ONGC's subsidiary, ONGC Petro additions Ltd (OPaL), has approved a proposal to raise up to ₹4,471 crore through the private placement of non-convertible debentures (NCDs). The fundraising plan comes as the petrochemical company looks to strengthen its financial position and meet funding requirements amid a challenging industry environment. The development is significant for investors tracking ONGC, given OPaL's status as a debt-listed subsidiary and its strategic role within the group's downstream operations.
According to ONGC's exchange filing, OPaL's board approved the proposal at its 134th board meeting held on June 11, 2026. The company plans to raise funds through secured or unsecured, redeemable NCDs in one or more tranches, with the total amount capped at ₹4,471 crore.
The proposal has already received recommendations from the Audit Committee and will require approvals from shareholders and relevant statutory and regulatory authorities before implementation.
NCD issuances are commonly used by companies to refinance existing debt, support capital expenditure, and improve liquidity without diluting equity ownership.
The fundraising announcement follows ONGC's recently reported fourth-quarter results, which reflected pressure on profitability due to lower crude oil realizations.
For the March quarter, ONGC reported a net profit of ₹6,650 crore, down 20.6% sequentially from ₹8,372 crore in the previous quarter. While revenue rose 13.9% quarter-on-quarter to ₹35,928 crore, EBITDA declined 17.1% to ₹12,666 crore. EBITDA margin also narrowed sharply to 35.3% from 48.4% in the preceding quarter.
The company attributed part of the earnings pressure to lower realized crude oil prices, which averaged $60.09 per barrel in FY26 compared with $70.23 per barrel in FY25.
Despite the earnings decline, ONGC maintained a robust shareholder payout. The company reported a total FY26 dividend of ₹13.25 per share, translating into a payout ratio of approximately 51%.
The board has recommended a final dividend of ₹1 per share, subject to shareholder approval. Including the interim dividend already paid, the total dividend payout for FY26 stands at ₹16,669 crore.
OPaL's proposed ₹4,471 crore NCD issuance highlights the subsidiary's focus on securing long-term funding while maintaining operational flexibility. For ONGC investors, the fundraising plan signals continued efforts to strengthen the balance sheet even as lower crude prices weigh on earnings. Going forward, market participants will closely watch regulatory approvals, debt utilization plans, and any impact on ONGC's broader financial strategy.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Jun 12, 2026, 5:27 PM IST
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