October 10, 2026: Oil prices witnessed sharp spike in September amid renewed US-Iran tensions, with Brent crude peaking at $108.8 a barrel and averaging around $91.4 a barrel in the July-September quarter. The rise in energy prices, alongside elevated liquefied natural gas (LNG) prices and rupee depreciation, is expected to have a mixed impact on India’s oil and gas companies in the second quarter of FY27.

While oil marketing companies (OMCs) are expected to report a sequential improvement in Q2 earnings, supported by stronger refining margins and lower crude prices compared with the June quarter, marketing margins are likely to remain under pressure. City gas distributors (CGDs), meanwhile, face margin compression as higher spot LNG prices and lower availability of domestic gas outweigh the benefits of price hikes, as per brokerages.

According to PL Capital, aggregate sales of companies in its oil and gas coverage universe are expected to grow 39.4% year-on-year (YoY) and 4.1% quarter-on-quarter (QoQ) in Q2FY27. EBITDA and profit after tax (PAT) are projected to decline 5.6% and 11.1% YoY, respectively, but rise 41.2% and 51.9% sequentially, led by a recovery in OMCs and resilient upstream performance

(Source: Fortune India)