Dolat Capital projects oil and gas sector within its coverage universe to grow in Q2 FY27, with Ebitda anticipated to jump by 12% YoY and 56% QoQ to Rs 17,600 crore. OMCs are expected to report positive Ebitda in Q2 versus loss in Q1, considering sequential decline in oil price, auto fuel price hike, crude inventory gains, and strong refining margins.
NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
Domestic brokerage firm Dolat Capital projects oil and gas sector within its coverage universe to grow in Q2 FY27, with Ebitda anticipated to jump by 12% YoY and 56% QoQ to Rs 17,600 crore.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
Reliance Industries Ltd. ONGC, Oil India and GAIL India are likely to be the major growth drivers for the sector during Q2 FY27.
RIL's expected Ebitda growth of 14% YoY and 10% QoQ is expected to be driven by robust performance and profitability improvements across the oil-to-chemicals, oil and gas, digital, and retail segments.
Higher oil price and revision in royalty rates are likely to be the major earnings driver of upstream players.
OMCs are expected to report positive Ebitda in Q2 versus loss in Q1, considering sequential decline in oil price, auto fuel price hike, crude inventory gains, and strong refining margins.
Despite this, mounting LPG under-recoveries (projected at Rs 75,000 crore -H1 FY27) will likely increase their short-term debt and working capital requirements.
City gas distributions are experiencing volume growth but their margins are under pressure.
RIL, Oil India are Dolat Capita's top recommendations in the sector.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
