OMC stocks have been rangebound post-Q2FY25 results, despite auto-fuel prices remaining frozen, oil prices being stable at USD70-75/bbl, and GRMs inching up from the USD3-4/bbl to the USD5-6/bbl range. While LPG under-recoveries have ballooned to over Rs210 per cylinder in Q3FY25 led by winter seasonality, auto-fuel over-recoveries (Rs7.5-11.5/ltr current gross margin for diesel-petrol) more than make up for the same. With the Q3/H2FY25 earnings run-rate being strong, we do not foresee any FY25 earnings downgrade for OMCs. With OPEC+’s extension of production cut also done, we believe oil prices should remain stable, which is a sweet spot for OMCs. Delhi’s is the only upcoming state election within a year (ie in Feb-2025) and, going by the recent Maharashtra and Jharkhand experience, we believe the current auto-fuel vs LPG trade-off could continue, overall benefiting OMCs. We value OMCs on 6.0-6.5x Sep-26E EV/EBITDA multiple. We maintain BUY on BPCL/HPCL/IOCL and keep Sep-25E TP of Rs405/475/185 unchanged, respectively.