LPG distributors are demanding a sharp increase in commission to Rs150/cyl, nearly double the current Rs73.08/cyl. With OMCs already estimated to face under-recoveries of ~Rs400bn in FY25 due to constrained pricing flexibility, any further increase in distributor marginsif not passed throughcould worsen the financial stress. Given the stretched valuations that the companies are trading at currently and expectations of a bounce back in crude prices to USD70-80/bbl in the near term amid inability to pass on increase in fuel cost to customers, we maintain our cautious view on OMCs. We downgrade rating on...