Ind-Ra maintains neutral outlook on oil and gas sector for FY26
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Credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has maintained a neutral outlook on the oil and gas sector for FY26. The rating agency noted that the credit profile of downstream companies is expected to remain stable during the year, driven by a healthy demand for petroleum products and healthy marketing margins that would offset compressed gross refining margins (GRMs), yielding healthy overall EBITDA.
According to the report titled ‘FY26 Oil and Gas Outlook: Weak Global Demand Driving Down GRMs; CGD Segment Transition Underway’, credit profile may see an addition of debt on account of under construction refinery expansion projects for all the major oil marketing companies (OMCs). The credit profile of upstream oil companies shall remain dependent on crude oil prices.
Further, it said that EBITDA generation for upstream companies may fall with a moderation in oil prices and a reduction in production from legacy fields. However, the impact of low crude oil price is expected to be offset by the removal of special excise on the production of crude and an increase in production expected from new discoveries.
