Earnings of OMCs seen weak as Q1FY27 under-recoveries bite: Report (opens original article in a new tab)

Oil marketing companies (OMCs) are expected to face continued profitability challenges in FY27 due to Q1FY27 under-recoveries, with LPG losses and excise duty rollback risks impacting earnings, while Saudi CP prices are projected to increase significantly.

• OMCs face pressure in FY27 due to Q1FY27 under-recoveries
• LPG losses estimated at Rs500/cyl in Q1FY27
• Excise duty rollback risk remains for OMCs
• Saudi CP prices for Q1FY27 expected to rise 47% QoQ