The oil and gas sector of India is expected to grow steadily via FY26 and FY27, driven by strong refining margins and rising demand despite recent market volatility, according to Systematix Institutional Equities | Photocredit: Istockphoto
The Indian oil and gas sector is likely to see strong growth due to the tax year 2026 and 2027, despite a considerable volatility that the oil and gas market was confronted last month, said an investigation memorandum from Institutional Systematix shares.
In India’s oil and gas sector, companies are probably covered the average turnover, EBITDA and PAT growth of 6 percent, 12.9 percent and 13.3 percent on an annual basis for FY26E and 7.8 percent, 9 percent and 10.1 percent year after year for FY27E, on an annual basis of respectively.
Systematix suggests that top -investing picks include Reliance Industries LTD (RIL), Gail India Ltd (Gail), Mahanagar Gas Ltd (MGL) and Gulf Oil Lubricants India Ltd (Goli).
Last month, Brent’s raw prices fell by 22.9 percent on an annual basis and 3.8 percent month on a month in May 2025, influenced by an increased OPEC offer from countries such as Saudi Arabia and the VAE. Moreover, the global liquid question also saw a sharp decrease for a slight recovery. The lower rough prices have contributed to a decrease in American counts, which reflect cautious river investments.
In contrast, the benchmark gross refining margin (GRM) of companies with 85 percent month-on-month and 121 percent on an annual basis, average USD 6.4/BBL. This significant improvement resulted from lower rough input costs and improved product cracks about gasoline, gas oil, jet, kero and nafta segments, all of which show strong improvements of the month on the month.
Moreover, natural gas prices presented mixed trends. Henry Hub prices in the US have corrected sharply since January 2025 with 31.8 percent due to oversupply and mild weather. Conversely, the Asian spot LNG (Japan Korea Marker) prices with 6.7 percent on an annual basis to USD 11.9/MMBTU, powered by regional demand.
In the fourth quarter of the FY25, the total income for the oil and gas sector saw a slight decrease of the year, but a successive increase in which companies of gas and city gas distribution (CGD) in general reported income above estimates. While EBITDA/SCM for CGD companies fell year-on-year, they showed successive rebounds driven by price increases and a favorable gas prize mix.
Published on June 9, 2025
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