OMCs Poised for Strong Q3FY26 on Robust Refining Margins
Business
M
Moneycontrol•15-01-2026, 23:12
OMCs Poised for Strong Q3FY26 on Robust Refining Margins
- •State-run oil marketing companies (OMCs) like Hindustan Petroleum, Bharat Petroleum, and Indian Oil are expected to report strong Q3FY26 results.
- •Healthy refining margins, with Singapore GRM averaging $7.5/barrel, are the primary driver for the anticipated strong performance.
- •Despite a 6% sequential decline in average oil prices and unchanged retail prices, product cracks led to higher refining margins.
- •LPG compensation recognition and lower per-cylinder under-recoveries will support blended marketing margins.
- •Upstream companies like ONGC and Oil India are expected to see a decline in crude oil realizations due to falling Brent crude prices and global oversupply.
Why It Matters: OMCs are set for a strong Q3FY26 driven by high refining margins, despite challenges in crude prices and marketing.
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