Despite windfall tax, ONGC, Oil India's earnings look positive for FY23

With diverse revenue streams RIL is less impacted, while oil marketing companies have seen earnings downgrades amidst volatility in oil prices

The first quarter for the 2022-23 financial year (Q1FY23) was difficult for the entire energy sector. Prices spiked after the Ukraine War started in late February and they remained elevated and volatile through this period. In theory, this should have meant good profits for upstream producers, and margin pressures for refiners and retailers, who would, however, be able to positively revalue inventory accumulated earlier, as crude and gas prices rose.

However, while downstream players in retail did see margins squeezed, refiners saw record margins, and upstream producers did fairly well. The price of the Indian crude basket rose from $103