Oil & Natural Gas Corporation has appointed three firms as cost auditors for the financial year 2026-27. The Board of Directors approved the appointments during its meeting held on September 17, 2026. The session commenced at 11:35 am and concluded at 1:00 pm.

The company selected M/s Chandra Wadhwa & Co, M/s Ramanath Iyer & Co, and M/s R Nanabhoy & Co to conduct the cost audit. This regulatory requirement ensures compliance with statutory cost accounting standards for the upcoming fiscal period.

Appointed Firms

The Board approved the following firms for the FY27 cost audit mandate:

• M/s Chandra Wadhwa & Co
• M/s Ramanath Iyer & Co
• M/s R Nanabhoy & Co

Chandra Wadhwa & Co previously conducted the cost audit for Oil & Natural Gas Corporation in FY18, FY19, FY20, and FY21. The Delhi-based firm, established in 2001, holds expertise in the petroleum sector.

Ramanath Iyer & Co, operating from New Delhi since 1978, obtained its peer review certificate from the Institute of Cost Accountants of India in March 2025. The firm specializes in statutory and voluntary cost audits across manufacturing and service sectors.

R Nanabhoy & Co, established in 1948 and based in Mumbai, received its peer review certificate without reservation on June 17, 2025. The certificate remains valid for five years from the date of issue.

Compliance Details

Shashi Bhushan Singh, Company Secretary and Compliance Officer, signed the disclosure. The brief profiles of the appointed cost auditors were attached as Annexure-A in the exchange filing, as required by SEBI circulars.

Oil & Natural Gas Corporation has formally disputed an Environmental, Social, and Governance (ESG) rating report issued by ESGRisk.ai on September 10, 2026, which assigned the company a score of 44, categorized as "Inadequate".

The Company Secretary, Shashi Bhushan Singh, informed the National Stock Exchange of India Ltd and BSE Limited that ONGC did not engage ESG Risk Assessments & Insights Limited for the report nor was it finalized in consultation with the company. Management stated the overall score is low and not commensurate with its decarbonization initiatives, governance structure, and detailed disclosures in its Business Responsibility and Sustainability Report (BRSR).

Rating Breakdown and Material Events

The ESGRisk.ai report assigned weighted scores across three pillars: Environment (33.8, 44% weight), Social (61.24, 27% weight), and Governance (42.57, 29% weight). The agency noted that while ONGC demonstrates a structured framework with board-level oversight, it operates in a carbon-intensive sector with substantial emissions.

The rating was significantly impacted by material events, resulting in an overall deduction of 12.18 points. These events included:

• Environmental: A gas leak at Well No. 21 in July 2025 and an H2S leak at Kesanapalli in March 2025. Additionally, the National Green Tribunal directed ONGC to pay over ₹1 crore in additional environmental compensation for non-compliance with effluent discharge standards at KG Basin facilities.
• Social/Occupational Health: A fatal fire at the Borholla Group Gathering Station in January 2025 and a gas blowout at the Mori-5 well in January 2026.
• Governance: Penalties from BSE and NSE totaling ₹28.62 lakh for board composition gaps, and disputed tax demands including GST penalties of ₹6.62 crore and ₹8.74 crore.

Year-on-Year Performance

The report indicates a decline in ONGC's ESG scores compared to the prior fiscal year. The overall ESG score fell from 48.54 in FY25 to 43.75 in FY26. Similarly, the Transition Score decreased from 42.01 to 40.78. However, the Core Score improved from 38.95 to 42.17, and the Core Transition Score rose from 25.49 to 29.44.

What the Numbers Show

The divergence between the rising Core Score (+3.22 points) and the falling overall ESG Score (-4.79 points) suggests that ONGC's fundamental operational metrics may be improving, but these gains are being offset by significant deductions related to material controversies and compliance incidents. The 12.18 point deduction for material events represents a substantial portion of the total score, highlighting how discrete operational failures can disproportionately impact aggregate ESG ratings despite broader structural improvements.