Oil India Tops PL Capital’s Q3 Picks; Subdued Quarter Expected Amid Crude Weakness

Oil India continues to be a top pick, supported by expected volume growth and the upcoming commissioning of the Numaligarh Refinery, which should enhance earnings visibility..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..PL Capital Report.PL Capital expects the oil and gas sector to deliver a muted performance in Q3 FY26 on a sequential basis, despite resilient refining margins. Aggregate revenues are projected to rise 3.5% QoQ, while Ebitda is estimated to remain flat at Rs 1,04,200 crore, and net profit is likely to decline 4.3% QoQ.Oil marketing companies are expected to benefit from strong crack spreads and lower brent crude prices, with standalone Ebitda estimated at Rs 31,260 crore, up 51.3% YoY but flat QoQ. However, rupee depreciation could weigh on marketing margins, limiting upside.In contrast, upstream companies face earnings pressure as weaker crude realizations impact profitability. PL Capital forecasts Ebitda for Oil and Natural Gas Corporation Ltd. and Oil India Ltd. at Rs 17,460 crore, down 8.2% QoQ, reflecting the impact of Brent crude averaging $63.6/barrel of oil versus $69.1/bbl in Q2 FY26.Reliance Industries Ltd. is expected to report a 5.3% YoY increase in consolidated Ebitda, supported by improved refining margins in its standalone segment. .Despite near-term headwinds, PL Capital maintains a Buy rating on Oil India, citing strong volume growth prospects and upcoming NRL commissioning as key drivers..Top picks: PL Capital maintains a positive stance on select upstream and city gas distribution names despite near-term sector headwinds. Ratings across coverage remain unchanged, except for Indraprastha Gas, which has been upgraded to Hold from Reduce following the recent price correction.Oil India continues to be a top pick, supported by expected volume growth and the upcoming commissioning of the Numaligarh Refinery Ltd., which should enhance earnings visibility. ONGC is also well-positioned to benefit from upcoming projects and well optimisation initiatives, driving medium-term production growth.Among CGDs, Mahanagar Gas has corrected meaningfully and now offers attractive upside potential, underpinned by expectations of sustained volume growth and margin resilience. .Click on the attachment to read the full report:.Maruti Suzuki, M&M, Happy Forgings Top Motilal Oswal’s Auto Picks Ahead of Q3 Preview — Details Inside.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.

Oil India Tops PL Capital’s Q3 Picks; Subdued Quarter Expected Amid Crude Weakness

Despite near-term headwinds, PL Capital maintains a Buy rating on Oil India, citing strong volume growth prospects and upcoming NRL commissioning as key drivers.

NDTV Profit

NDTV Profit

Follow Us

DISCOVER US FASTER

DOWNLOAD THE APP