Despite marketing margins for MS (petrol) and HSD (diesel) remaining healthy over most of FY2026, the West Asia conflict led to a sharp deterioration, turning the segment loss-making; however, margins have since improved on account of retail price hikes, excise duty cuts and the recent decline in crude prices following the June peace deal, with petrol now in profit and diesel losses narrowing, and expected to turn positive in the near term if crude prices remain at lower levels.

Exhibit: Vessel composition through SoH in FY2025

Source: IMF Portwatch, ICRA Research