Nomura sees Q2 earnings recovery for Indian OMCs despite higher crude

GAIL (India)

15/09/2026 06:58

** Nomura says Indian oil marketing companies (OMCs) tracking healthy earnings recovery in Q2FY27 despite crude breaching $100 per barrel
** OMCs supported by full-quarter impact of May fuel price hikes and lower LPG underrecoveries Q/Q
** Brokerage expects integrated margins for OMCs to reach $6–$12 per barrel in Q2
** Nomura estimates Indian Oil Corporation IOC.NS ("Buy", PT: 180 rupees) and Bharat Petroleum BPCL.NS ("Buy", PT: 395 rupees) to report PBT of 32 billion rupees and 26 billion rupees, respectively
** Expects Hindustan Petroleum HPCL.NS("Neutral", PT: 420 rupees) to post a loss of 28 billion rupees in Q2 
** Brokerage says it prefers IOCL and BPCL given their higher exposure towards refining
** HPCL may continue to face challenges from higher oil price due to its higher marketing leverage - Nomura
** Adds, it expects increased volatility in LNG prices to positively impact margins for the gas marketing business of GAIL GAIL.NS ("Buy", PT: 195 rupees) and Gujarat Energy GJAA.NS ("Buy", PT: 379 rupees)
** Says city gas distribution may be most impacted among gas utilities given increased gas costs, falling domestic gas allocation, and their inability to fully pass on increased gas costs


 (Reporting by Payel Das in Bengaluru)
 ((Payel.das@thomsonreuters.com))