New Delhi, June 21 -- Oil marketing companies are likely to stay under pressure through FY27 as Q1FY27 under-recoveries will weigh on profitability and the risk of excise duty rollback remains, domestic brokerage firm Prabhudas Lilladher said in a recent research report.

The firm said that the near-term sentiment has improved after Brent crude dropped below USD80/bbl on the US-Iran ceasefire, but persistent volatility in prices and inventory rebuilding are expected to limit further downside, keeping margins compressed.

The brokerage firm said Q1FY27 is expected to weigh sharply on profitability despite the recent respite. "We expect an under-recovery of Rs7.0/ltr and Rs10/ltr in Q1FY27, after considering a Rs10/ltr excise cut and cappin...