What is the expected EBITDA growth for India's Oil & Gas sector in Q3 FY26?

The oil and gas sector is expected to see its aggregate EBITDA jump by 17% year-on-year in Q3 FY26.

Which companies are expected to drive O&G sector earnings in Q3 FY26?

Oil marketing companies (OMCs), Reliance Industries, and city gas distributors (CGDs) are expected to lead the earnings growth.

Why are refining margins expected to be higher for O&G companies?

Refining margins are expected to be sharply higher due to sustained strength in transportation fuel cracks and elevated product cracks.

Home / Business and Economy / Oil & Gas Sector EBITDA to Surge 17% YoY

Oil & Gas Sector EBITDA to Surge 17% YoY

9 Jan

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Summary

Oil and gas sector EBITDA to jump 17% year-on-year.
Refining margins are sharply higher, boosting earnings.
ONGC and oil utilities expected to see EBITDA decline.

Oil & Gas Sector EBITDA to Surge 17% YoY

The Indian oil and gas sector is set to report a robust performance for the third quarter of the financial year 2025-26. Aggregate EBITDA is forecasted to surge by approximately 17% year-on-year, propelled by strong refining margins and contributions from oil marketing companies and Reliance Industries. Refiners are benefiting from significantly higher product cracks, leading to improved Singapore Gross Refinery Margin (GRM) to $4.9/bbl.

While many companies anticipate significant year-on-year earnings growth, ONGC and oil utilities are expected to see a decline in their EBITDA. ONGC's EBITDA is projected to decrease by about 10% year-on-year. Conversely, city gas distribution companies like IGL and GGL are expected to report improved EBITDA per scm due to lower operating expenses and softer spot LNG prices.

Petronet LNG's EBITDA is anticipated to remain flat, with volume growth offset by rising operational costs. GAIL's EBITDA might decline by 7% year-on-year due to weaker petrochemical margins. Overall, the sector's earnings visibility remains strong, supported by favorable refining conditions.