Mahanagar Gas Among Systematix' Top Stock Picks In Oil & Gas Sector; Q1 Results Preview

In CGDs, margin expansion is expected on the back of lower gas costs, higher APM allocation, rupee appreciation, and CNG price hikes..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..Systematix Report.In Q1 FY26E, the aggregate operating earnings for our gas sector coverage universe is expected to decline 25.9% YoY/-2.9% QoQ while CGDs are expected to outperform with just -2.1% YoY/+13.5% QoQ. Brent crude averaged at $66.8/bbl, down 10.9% QoQ while GRM improved to $5.7%, up 84% QoQ. Spot LNG prices was also lower 12% to average $12.4/mmbtu (+11% YoY). Gross marketing margins improved significantly on lower crude oil price as Petrol/Diesel GMM came at Rs12.4/ltr and Rs10.3/ltr (up 20.4%/51.5% QoQ) respectively. Reliance Industries Ltd. is expected to deliver flattish sequential performance, supported by better O2C and higher Digital Services profits, offset by lower QoQ profits from retail business. In CGDs, margin expansion is expected on the back of lower gas costs, higher APM allocation, rupee appreciation, and CNG price hikes. Petronet LNG volumes are expected to take a hit on account of higher utilisation of Dabhol terminal. GAIL India Ebitda is expected to fall 33% YoY on lower transmission volume, weak trading profits and lower profits from LPG and petchem segments. We remain positive on GAIL. Our Buy call (top picks) on Mahanagar Gas and RIL has done well and would revise our rating post the Q1 FY26 result..Click on the attachment to read the full report:.Suzlon Energy Gets Motilal Oswal's 'Buy' Rating As It Re-Initiates Coverage.DISCLAIMERThis 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.

Mahanagar Gas Among Systematix' Top Stock Picks In Oil & Gas Sector; Q1 Results Preview

The brokerage remains positive on GAIL India

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