New Delhi, Sept. 9 -- Earnings of India's oil marketing companies (OMCs) are likely to rebound in the July-September quarter of FY27, supported by higher auto-fuel prices, improving marketing margins and lower LPG under-recoveries, but renewed volatility in crude oil prices could weigh on their full-year outlook, according to a report by Emkay Research.

The brokerage expects OMCs' integrated margins, which combine their refining and fuel marketing businesses, to improve significantly to around Rs 9-14 per litre in Q2FY27 from about Rs 1-3 per litre in Q1FY27, with HPCL expected to witness the sharpest sequential improvement.

"Marketing economics, however, have improved sequentially," Emkay said, pointing to the recovery in auto-fuel mar...