New Delhi, Sept. 23 -- India's oil marketing companies (OMCs) may see a sharp recovery in petrol and diesel margins in the second quarter of FY27, although continued losses on LPG sales could limit the overall benefit, according to a report by JM Financial Institutional Securities.

The brokerage expects the combined refining and marketing margin on petrol and diesel to rise to Rs 11.4 per litre in Q2FY27, from Rs 2.4 per litre in the previous quarter.

However, after factoring in losses from LPG sales, the effective margin is expected to be lower at Rs 8.5 per litre.

JM Financial said the combined petrol and diesel margin is likely to recover, but could still remain around Rs 1 per litre below the historical average of Rs 12.5 per litre...