Mahanagar Gas, HPCL Among Dolat Capital's Top Stock Picks In Oil And Gas Sector; Q1 Results Preview

HPCL/BPCL/IOCL to report Ebitda of Rs 93 billion / Rs 108 bn, Rs 172 bn respectively, primarily driven by super normal GMM on petrol/diesel @ an average of Rs 13/lt vs Rs 8/lt in Q4; a 37% QoQ decline in LPG under-recovery due to falling LPG prices and a Rs 50/cyl. cut in Apr’25, Govt. increased Rs 2/lt excise duty on petrol and diesel in Apr'25 to compensate the domestic LPG under-recovery; if in case compensation is provided, then could lift equity value by Rs 7/Rs 4/Rs 2 per sh (fall in net debt) resp; Sing Benchmark GRM jumped 80% QoQ on account of stronger diesel, petrol, LPG, and ATF cracks; and restored Russian crude supply..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.In Q1 the ‘Oil & Gas sector’ in our coverage universe showed a sharp jump, with Ebitda likely up 33% YoY/17% QoQ to Rs 1,061 billion and PAT up 53% YoY/19% QoQ to Rs 540 billion. Key factors driving sector growth include-super-normal gross marketing margin on petrol and diesel with minimal impact of Rs 1.8/litre from LPG under-recovery; a rebound of Singapore gross refining margin to $5.6/bbl from a 15-quarter low of $3.1/bbl; a 37% decline in LPG under-recovery, raising hopes for government compensation;expectation of QoQ margin improvements in CGDs despite APM de-allocation, supported by lower crudelinked LNG cost with reduction in HH prices and INR appreciation of 1% QoQ. .We, thereby, expect CGDs to post Ebitda/PAT growth of 13%/11% QoQ. However, in Q1 FY26, India's LNG imports declined 4% YoY, and Petronet LNG lost 7% market share vs last year to other LNG terminals. Dahej/Kochi utilisation to be 92%/25% in Q1 FY26. GAIL's transmission volume would be impacted due to lower gas consumption by power/Fert. Plants. Our top picks are Mahanagar Gas, HPCL and Reliance Industries..Click on the attachment to read the full report:.TCS, Infosys, LTIMindtree, Happiest Minds Among Anand Rathi's Top Stock Picks In IT Sector; Q1 Results Preview.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, HPCL Among Dolat Capital's Top Stock Picks In Oil And Gas Sector; Q1 Results Preview

Oil And Gas Q1 Results Preview: Dolat Capital projects bumper earnings growth backed by oil marketing companies.

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