Karachi: Pakistan's Oil Marketing Companies (OMC) sector is poised for a significant financial upswing, with full-year earnings projected to increase by 17% year-on-year by the end of fiscal year 2026. The positive outlook comes despite an anticipated dip in earnings for the fourth quarter, attributed to inventory losses and decreased sector volumes.

According to AKD Securities Limited, the OMC sector, specifically Pakistan State Oil (PSO) and Attock Petroleum Limited (APL), is expected to overcome short-term challenges and benefit from upcoming revisions to regulated OMC margins and a recovery in sales volumes. This recovery is driven by increased consumer mobility and industrial activities, setting the stage for a more favorable fiscal year 2027. AKD Securities has issued a 'BUY' recommendation for both PSO and APL, with target prices set at PKR 900 and PKR 760 per share, respectively, by December 2026.