Sharp rupee slide raises balance-sheet risks for India Inc’s overseas loans

With the rupee breaching the psychological ₹90-per-dollar mark for the first time, Indian companies with foreign currency borrowings are facing renewed concerns. While many enjoy a natural hedge through export revenues, the sharp depreciation of the local currency is likely to impact balance sheets — especially for firms with significant exposure to overseas loans.

The local currency ended Wednesday’s session at 90.19 against the US dollar and has so far in FY26 depreciated 5.2% - more than double of 2.4% decline seen in FY24.

According to data analysed by CNBC TV18,Indian Oil Corporation (IOCL), Oil & Natural Gas Corporation (ONGC), NTPC, Adani Ports and Special Economic Zone, Power Grid Corporation of India, JSW Steel and Hindustan Petroleum Corporation (HPCL) are among BSE500 companies that have higher exposure in foreign loan in absolute terms.

For instance, IOCL had an overseas loan of ₹88,768 crore at the end of FY25, representing 62% of its total borrowings. Similarly, over 80% of Adani Ports ₹45,810 crore debt is foreign currency denominated. While ONGC had a foreign currency debt of ₹57,875 crore, Power Grid Corporation of India and JSW Steel had ₹35,320 crore and ₹32540 crore, respectively.

Hindustan Petroleum Corporation (HPCL) is another oil marketing company with a foreign debt of ₹29,450 crore. While a depreciating rupee is a positive for upstream oil companies like ONGC, OIL India and Reliance Industries,

OMCs are likely to have some impact on their balance sheet considering both repayment of loans and oil import bills need to be serviced in dollars.

Many of these companies also incurred foreign currency losses in the September quarter. ONGC reported a forex loss of ₹1,045 crore during the quarter, compared with ₹1,302 crore for the entire FY25. IOCL, meanwhile, had booked a forex loss of ₹2,313 crore in FY25.

However, analyst observe the fall in rupee could be operationally positive for them as GRMs are dollar denominated. While both ONGC and Oil India are likely to see 1-2% improvement in their EPS for every ₹1 fall against USD, OMCs are expected to see 11% improvement in their EPS due to ₹1 depreciation.

According to data sourced from Ace Equity database, nearly 30 companies have at least ₹1000 crore in forex loan, with two-third of them have borrowed over a quarter of their total loans from abroad.

REC Ltd had the highest foreign currency debt in absolute terms which stood at ₹1.65 lakh crore at the end of March 2025. However, the state-owned company, which finances and promotes power projects across India has hedged 99% of its borrowing portfolio, resulting a slight increase in its cost of borrowing.

Also Read: Rupee near 90 sparks earnings hit for corporates with dollar exposure