New Delhi, Jan. 6 -- The oil and gas sector is expected to report a strong operational performance in the third quarter of FY26, with aggregate EBITDA projected to rise 17 per cent year-on-year, driven primarily by downstream and city gas segments, according to a sector preview note by Nuvama.

"We forecast O&G's Q3FY26E aggregate EBITDA shall jump 17 per cent YoY led by OMCs/RIL/CGDs, partially offset by ONGC and gas utilities," the report said.

Refining and marketing segments are likely to outperform, supported by a sharp improvement in gross refining margins (GRMs). The report highlighted that Singapore GRMs rose 21 per cent year-on-year, aided by a significant expansion in product cracks, with petrol cracks up over two times and dies...