Oil Marketing Companies

The next few quarters could favour downstream refiners and marketers over upstream, with Brent expected to stay in a $60-65 range or drift lower, while GRMs remain strong and LPG under-recoveries ease

Despite the near-term volatility, HPCL's valuations remain reasonable, the brokerage noted. The stock trades at 1.4x one-year forward price-to-book, slightly above its long-term average of 1.2x.

Oil marketing companies (OMCs) are poised for a sharp rebound, with operating profits expected to surge more than 50 per cent to USD 18-20 per barrel this fiscal year, driven by stronger marketing margins amid stable retail fuel prices and supportive crude oil dynamics, Crisil Ratings said on Friday. OMCs earn from refining (gross refining margins or GRMs) and from marketing of petrol, diesel, and other fuels. "This fiscal, the improvement in marketing margin will more than offset a moderation in refining margin owing to slow growth in global demand for fossil fuels as the world transitions towards cleaner energy sources," Crisil Ratings said in a note. Healthy profitability is set to bolster cash accruals to Rs 75,000-80,000 crore, compared with about Rs 55,000 crore last fiscal year. The stronger cash flow will support the sector's planned Rs 90,000 crore capex, largely focused on brownfield expansion and domestic demand-driven projects. Crude oil prices are expected to soften to

India's decision to import LPG from the US helps it to diversify sources as it reduces almost full reliance on West Asian countries for supply of the country's primary cooking fuel

Fitch Ratings says sanctions on Rosneft and Lukoil - which supply around 60% of India's Russian crude - may not materially affect OMC margins, though compliance challenges

Outlook on OMCs: Analysts at Motilal Oswal revised upwards the FY26/FY27 estimates for OMCs factoring in monthly LPG under recovery compensation over Nov'25-Oct'26 under revenue.

Centre's move to allow 1.5 million tonnes of sugar exports offers relief to a stressed sector grappling with ethanol allocation cuts, cane price hikes, and growing political pressure

In the past one week, the BSE Oil & Gas index up 3.4 per cent, as compared to 0.91 per cent decline in the BSE Sensex.

BPCL shares rose after it reported a 168 per cent Y-o-Y jump in standalone net profit at ₹6,442 crore for the second quarter

Both grain and sugarcane ethanol producers criticise OMCs' allocation for 2025-26, citing unfair distribution, capacity underuse, and potential negative impact on the sugar sector

In the past two months, the stock price of HPCL has gained 15 per cent after the company said June 2025 quarter (Q1FY26) witnessed a strong operational and financial performance.

The Supreme Court sought a response from the government and OMCs on a petition by biodiesel producers citing poor off-take, policy lapses and heavy losses despite set targets

China today has the largest refining capacity globally, with its refining capacity to reach 21 million barrels per day (mb/d) in 2025

The ₹300 per cylinder subsidy will be provided for up to 9 refills in FY 2025-26, benefiting over 10 crore PMUY consumers and ensuring affordable access to clean cooking fuel

BPCL, HPCL, IOC, Asian Paints, and other downstream oil companies' stock surged, while ONGC, Oil India dropped after Brent crude oil slipped 5 per cent

Technical chart shows that this oil-related India-listed stock - OIL India - can potentially rally up to 27% from here on as Crude Oil soars on Israel-Iran war fears.

National transporter Indian Railways was running special trains to handle increased traffic out of Jammu and Kashmir

Downstream businesses like the oil marketing companies (OMCs) and gas players gain

While Motilal Oswal Financial Services think the rally in OMC stocks is now entering the last phase, the brokerage firm still see a few positive catalysts.

Grains look to surpass sugarcane again as the primary feedstock for ethanol, a process that may be helped by government incentives to convert mills into dual-feed ones