Rupee Breaches 88 Mark Against Dollar: Check Winners and Losers Across Sectors

On September 3, 2025, the Indian rupee was trading above the 88 level against the US dollar, after having hit a historic low of 88.34 on Monday. While a weaker rupee typically bodes well for IT exporters by boosting their profit margins, its impact varies significantly across other sectors. Here’s a look at how different companies is positioned amid this currency depreciation

Upstream Oil Explorers: ONGC & Oil India

State-owned oil producers stand to benefit from the rupee’s slide. As per reports, for every ₹1 depreciation against the dollar, ONGC and Oil India's standalone Earnings Per Share (EPS) increase by 1% to 2%. Additionally, Oil India could see further upside due to the improved Gross Refining Margins (GRM) from its Numaligarh Refinery.

Petronet LNG

Petronet's business model benefits directly from dollar-linked regasification margins. The reports by ICICI Securities stated that a ₹1 depreciation in the rupee enhances the company’s EPS by 1% to 3%. Regasification involves converting liquefied natural gas (LNG) back into its gaseous form, enabling pipeline transport and consumption.

Reliance Industries (RIL)

RIL faces a mixed bag. A weaker rupee raises input costs, considering its heavy imports of crude oil, LNG, and ethane. The net impact on RIL’s EPS ranges between -1% to +1.3% for every ₹1 drop in the rupee.

Oil Marketing Companies: HPCL, BPCL & IOC

Oil marketing firms benefit from higher refining gains due to rupee depreciation. However, this is tempered by shrinking refining margins. ICICI Securities projects a net negative impact of around 11% on EPS for every ₹1 depreciation against the dollar.

City Gas Distributors: IGL, MGL & Peers

Currency weakness spells trouble for city gas distributors like Indraprastha Gas and Mahanagar Gas. Their dependence on imported LNG becomes costlier, and there's limited room to pass on this increase to consumers. ICICI Securities estimates the hit to EPS could range between -4% and -11% for every ₹1 fall in the rupee.

Also Read: CCI Approves SMBC’s Stake Hike in Yes Bank to ~25%

Conclusion

While the falling rupee serves as a tailwind for exporters and select energy players, it poses headwinds for companies with high import exposure or limited pricing flexibility. The impact is nuanced, and investor attention is shifting toward how well these firms navigate the currency volatility.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

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