Earnings call transcript: Bharat Petroleum Q1 2025 sees revenue beat, EPS miss

Bharat Petroleum Corporation Limited (BPCL), a prominent player in the Oil, Gas & Consumable Fuels industry with a market capitalization of $15.8 billion, reported its financial results for the first quarter of 2025, revealing a mixed performance. The company posted revenue of INR 129,578 crores, surpassing expectations with a 21.2% surprise. However, earnings per share (EPS) fell short of forecasts, coming in at INR 14.33 compared to an anticipated INR 15.98, marking a 10.33% miss. Following the announcement, BPCL’s stock price experienced a slight dip, closing at INR 318.4, down 1.27% from its previous close. According to InvestingPro, the company maintains a GOOD financial health score of 2.8, reflecting its robust operational foundation.

Key Takeaways

• BPCL’s revenue exceeded forecasts by 21.2%, reaching INR 129,578 crores.
• EPS missed expectations, recording a 10.33% shortfall.
• Gross refining margin decreased to $4.88 per barrel from $7.86 the previous quarter.
• Stock price declined by 1.27% in response to earnings results.
• BPCL continues to expand its EV charging and CNG station networks.

Company Performance

Bharat Petroleum’s Q1 2025 performance demonstrated robust revenue growth, attributed to increased domestic market sales and operational efficiency. The company processed over 10 million metric tons of crude, achieving 118% of its nameplate refinery capacity, despite a decline in gross refining margins. BPCL’s market share in high-speed diesel (HSD) retail and aviation fuel remains strong, at 29.59% and 26.51% respectively.

Financial Highlights

• Revenue: INR 129,578 crores, a significant increase from the previous quarter.
• Standalone Profit After Tax (PAT): INR 6,124 crores.
• Consolidated PAT: INR 6,839 crores.
• Gross Refining Margin: $4.88 per barrel, down from $7.86.
• Debt-to-Equity Ratio: 0.12 standalone, 0.44 group level.

Earnings vs. Forecast

BPCL reported an EPS of INR 14.33, falling short of the forecasted INR 15.98, resulting in a 10.33% miss. In contrast, the company’s revenue exceeded expectations by 21.2%, highlighting strong operational performance despite the EPS shortfall.

Market Reaction

Following the earnings announcement, BPCL’s stock price decreased by 1.27%, closing at INR 318.4. This decline reflects investor concerns over the EPS miss, despite the positive revenue surprise. The stock remains within its 52-week range, with a high of INR 376 and a low of INR 234.01. Notably, BPCL has demonstrated strong momentum with a 30.42% price return over the past six months, and has maintained dividend payments for 26 consecutive years, showcasing its commitment to shareholder returns.

Outlook & Guidance

BPCL has outlined ambitious capital expenditure plans, with estimated spending of INR 20,000 crores for FY26 and up to INR 25,000 crores for FY27. The company aims to maintain a debt-equity ratio of 1.0 during peak investment years, with a focus on expanding its retail and renewable energy infrastructure. Analyst consensus from InvestingPro suggests potential upside, with target prices ranging from $2.52 to $5.50, reflecting varied opinions on the company’s growth trajectory. For detailed analysis and comprehensive valuation metrics, investors can access BPCL’s Pro Research Report, part of InvestingPro’s coverage of over 1,400 stocks.

Executive Commentary

"As long as crude prices are at 65 to 70 range, our margins will be better," stated V. R. Gupta, Director, emphasizing the company’s strategy to manage refining margins. Pankaj Kumar, ED Corporate Finance, added, "We are targeting good IRR for all these projects in the range of 12% to 15%."

Risks and Challenges

• Fluctuating crude oil prices could impact refining margins.
• High capital expenditure plans may strain financial resources.
• Increased competition in the renewable energy sector.
• Regulatory changes affecting the oil and gas industry.
• Potential supply chain disruptions.

Q&A

During the earnings call, analysts inquired about BPCL’s LPG compensation mechanism and inventory strategies. Executives provided insights into the economics of EV charging stations and progress on refinery and petrochemical projects, addressing key investor concerns.

Full transcript - Bharat Petroleum Corp. Ltd. (BPCL) Q1 2026:

Conference Moderator, Antique Stock Broker Limited: Ladies and gentlemen, good day, and welcome to the Bharat Petroleum Corporation Limited Q1 FY ’twenty six Earnings Conference Call hosted by Antique Stock Broker Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Vartarajan from Antik Stock Broking Limited.

Thank you and over to you sir.

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: Thank you, Aditi. A very good morning to everyone. I’d like

Unidentified, Antique Stock Broker Limited: to welcome all the participants and the VTCL senior management team to this call. We have with us Mr. V. R. Gupta, Director

Pankaj Kumar, ED Corporate Finance Mr. Srivindya, ED Corporate Treasury Mr. Chandan Agi, GM Pricing and Insurance and Mr. Balaji Girish, Senior Manager, Finance. I’d like to hand over the call to Balaji for the disclaimer and then opening remarks by the end.

Balaji Girish, Senior Manager, Finance, Bharat Petroleum Corporation Limited: Thank you, Mr. Varvarajeet. Good morning, everyone. On behalf of the VPK team, I welcome you all to this post Q1 results conference call. Before we begin, I would like to mention that some of the statements that we will be making during this conference call are based on our assessment of the matter, and we believe that these statements are reasonable.

However, their nature involves a number of risks and uncertainties that may lead to different results. Since this is a quarterly results review, please restrict your questions to the Q1 results. I now request our Director Khanna, Mr. V. R.

K. Gupta, who is leading the VPCL team for this call to make his opening remarks. Thank you and over to you, sir.

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: Good morning, everyone. Welcome to the fourth Q1 Rajas conference. Thank you for joining us today. I hope you were able to go through our results for the quarter. On the macro side, global growth prospects have strengthened with the IMF in July 2025, upgrading its 2025 forecast to 3% and India’s FY 2020 outlook to 6.4, reflecting resilient trade activity, robust domestic demand and sustained reforms.

While the recent August 2025 U. S. Tariff measures introduced a degree of uncertainty, the underlying momentum in consumption and investments continues to support a positive medium term outlook. RBI has retained GDP growth forecast at 6.5% for the current fiscal in its latest MPC meeting, citing strong domestic demand and economic resilience. Despite risk posed by recent U.

S. Tariffs, it expressed confidence that ongoing trade negotiations will help ease these pressures. In Q1 FY twenty twenty twenty six, the rupee appreciated 1.2% quarter on quarter to 86.62% in Q4, driven by strong foreign inflows, a weaker USD and easing geopolitical tensions. However, it now trades near historical lows amid U. S.-India tariff concerns and sustained FDA outflows.

After weakening to US87.7 dollars in August, it recovered slightly on a softer USD ahead of U. S. Russia talks. IEA forecast global oil demand to increase by 2,500,000 barrels per day between 2024 and 02/1930, with the demand expected to reach 105,600,000 barrels per day by 2009 followed by slight decline in 02/1930. Within this context, India is projected to be the largest contributor to demand growth with its oil consumption rising by 1,000,000 barrel per day at an average annual rate of around 2.8, outpacing all other countries during this period.

Oil prices have remained volatile amid the recent tariff announcement and a series of OPEC plus production hikes as per EIA’s latest projects in the Brent is likely to be 67 to 68 barrels in 2025. Domestic petroleum product demand grew in Q1 with petrol by 7.1%, diesel 2.6% and ATF up by 3.9% as per PPAC. Coming to the performance in ’6. On the operations side, our refineries processed 10,420,000 metric ton of crude, achieving 118% of nameplate capacity. We have achieved a distillate yield of 84.96%, consistently above benchmark going to our complex refinery configuration and strong operational efficiencies.

Product cracks for gasoline was 9.88 barrel and for gasoil 15.81 barrel for Q1 during this period. Accordingly, our refineries recorded a GRM of $4.88 per barrel in the current quarter as compared to $7.86 per barrel in ’5. BPSIL has always been evaluating crude grades from across global geographies, selecting goods that maximize value in line with refinery configuration and product demand. In the current environment of narrowing discounts for Russian crude, the company’s agile sourcing strategy has enabled procurement of alternative grades from Brazil, The U. S, West Africa and other regions, guided by economics and market conditions and maintaining a competitive edge in crude selection.

On the marketing side, our domestic market sales grew by 3.19% on year on year during this quarter to 13.58 MMT. Further, as compared to ’5, we recorded a growth of 6.6% in MS and 3.2% in HID in Q1. During the quarter, we commissioned three seventeen NROs and 99 CNG stations, taking total RO network to 23,958 and CNG stations network to 2,607 stations. We aim to expand our RO network to 25,000 by the end of this current financial year. We maintained our leadership in throughput per RO at 153kl per month for Q1 twenty twenty five-twenty twenty six, outperforming the PSA average driven by strategic market access and a strong highway presence.

In a positive development for the OMCs, the government has announced a INR30000 crore compensation towards the under recovery and sale of domestic LPG, which is expected to be paid in different branches. With further details highlighted on the payout, BP said total negative buffer before the impact of the sale compensation is INR12.523 crore as of June 2526. We have not accounted anything against this particular compensation allowance. Through our industry first digital initiative of a QR code based payment mechanism at our ROU field, which embodies our commitment to transparency and convenience. We have covered 15,000 plus retail outlets with a daily six lakh transactions valued at INR30 crore per day.

AI driven iris platform is an intelligent system that enables us to remotely manage retail outlet operations, safeguarding both quality and quantity at the outlet. Iris is activated at 19,000 retail outlets across businesses, Bipicel is advancing digital transformation using real time data under several initiatives to streamline operations, reducing turnaround time and enhancing customer experience. In line with government’s energy security agenda and efforts to reduce import dependence through biofuels, ethanol blending level of BPCel for Q1 twenty five-twenty six stood at 19.62%. Under Gas business, we have achieved a total sales volume of three thirty eight TMT, 9% on quarter on quarter basis during the year for CNG, PNG and bulk shares in our own years. Further through our retail channels, we have sold two sixty nine TMT in Q1 twenty five-twenty six.

We also received our first cargo, another long term supply agreement with ADNOC linked to Henry Hub Index in Q1 twenty twenty five-twenty twenty six, diversifying our long term sourcing strategy beyond Brent linked term contracts. We added eight thirty nine EV charging stations during Q1, taking total network to 2,402 of EV charging stations. Updates on new projects. Biena Petrochemical and Refinery Petro expansion project has made steady progress, achieving overall progress of around 14% as against a schedule of 15.9%. We have incurred expenditure of approximately INR800 crores with overall commitment of INR6800 crores.

All technology licenses and consultants are on boarded and process packages for all units received and front end engineering design has been completed. Detailed engineering and procurement are underway with tenders for critical equipment and EPC packages floated and key long term items such as ECU compressor and furnace packages have been awarded. Site enabling works are also nearing completion. Further, as a step towards digitization, we launched the Digi Biprep, an industry first digital platform for the project, enabling real time progress monitoring and enhanced transparency. In our polypropylene project at Kuchi, we have achieved a physical progress of 12.2% as again a schedule of 16% with an expenditure of INR260 crore and overall commitment of INR400 crore.

Licenses selection and basic design engineering activities have been completed. Other for six major long lead items have been placed. The EPC tender, this is a major activity for the PP unit is underway. The Board has also recently approved the Petro residue fluidized catalytic cracking unit and associated facilities at Mumbai refinery at a gross capital cost of INR14200 crores with expected mechanical completion by May 2029. The project will replace the old CCU and FCC units at our Mumbai Refinery, which are almost 40 years old.

This will help MRAT residue upgradation, increase transportation fuel production, provide flexibility of processing higher proportion of high sulphur crudes and reduce environmental impact, thus also increasing overall yields of BP Cell Group refineries. During the last year, the Board has approved INR 6,100 crores towards pre project activities including land identification and acquisition, feasibility studies and environmental assessment for greenfield refinery competitor chemical complex in Andhra Pradesh. Detailed feasibility study of the project is in progress. Land acquisition is also in progress. Our green energy, BPCL has awarded contracts for setting up 100 megawatts of wind farm projects, 50 megawatts each in Madhya Pradesh and Maharashtra as part of its strategy to transition to renewable energy and reduce reliance on imported fossil power.

The LOAs have been issued to Mrs. Sujalan Energy Limited and Mrs. Integrum Energy Limited with completion and commissioning targeted within two years. As informed to you earlier, based on the approval of the previous quarter, BPSL has constituted joint venture, Nuyen Energy, Green Energy with Simcor Green Hydrogen Private Limited for setting up renewable energy and green hydrogen assets. Two projects, ground mounted solar project at Prayagrad and integrated green hydrogen plant and hydrogen refueling station in Kuchi are expected to be commissioned during the next two to three months.

We have prioritized setting up of 26 CVG plants out of which 10 indirect investments the location has been identified and activities have commenced. Further 16 CVG plants are proposed to be set up through our joint venture Bharat GPS Bioenergy Limited and the proposed JV with Praj Industries. Let me now guide you through the financial highlights for the quarter. The revenue from operations stood at INR129.578 crores. The stand alone profit after tax stood at INR6124 crores and the consolidated profit after tax was INR6839 crores.

Against an estimated CapEx of INR20000 crores during this financial year, we have spent about INR2382 crores during Q1. Our stand alone net worth as of thirtieth June twenty twenty five is INR87377 crores. The earning per share for the quarter is INR14.33 per share. As of June 25, the debt equity at stand alone gross borrowings level is 0.12. Overall stand alone gross borrowings is INR10709 crores as on thirtieth June twenty twenty five, again at which have current investments including surplus funds in IL bonds of about INR17.580 crores, placing us at a net surplus on a stand alone basis.

At group level, debt equity is 0.44 with gross borrowings of INR39.452 crore. Debt equity ratio net of current investments at group level will be around 0.25. This concludes my comments and we’ll be happy to take your questions now. Thank you.

Conference Moderator, Antique Stock Broker Limited: Thank you very much. We will now begin the question and answer session. The first question is from the line of Praful Singh from ICICI Securities. Please go ahead.

Praful Singh, Analyst, ICICI Securities: Very good morning, sir.

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: Thanks for the opportunity. Just to clarify the last bit that you just mentioned. On the group debt level, you said the group debt equity ratio on growth is 0.4. And what was the debt level at group level, sir? I didn’t catch the number.

INR39.4.52 crore at group level tax. INR39.4.52 crore. And on a net level, it’s around INR0.25 crores. That’s what you said, sir? Yes.

Yes, we have surplus funds invested around INR17.580 crores. Understood. Okay, okay. Right. So I had a few questions.

First one, sir, you mentioned that due to the uneconomic nature of Russian crude, we have procured from other sources. So can you just quantify what the Russian crude percentage was in this quarter and also the inventory impact, if any, if you can quantify for this quarter in the GRA? This quarter, Russian crude procurement is around 34% for April, May, June quarter. In terms of inventory levels, right, have kept a little bit more inventories in the month of March, April because of geopolitical issues and concerns. So our inventory levels are on a slightly and I have said March 2025, our total quantity crude oil and intransigence 2.9 MMT, whereas generally we keep around 2.3, 2.4 MMT.

But this quarter, March and as well as June also, our inventory levels are around 2.9 to three MMT levels have improved. And what was that what does that translate to, sir, in terms of dollars per barrel impact in this quarter of GRN? Sir, per barrel impact, we generally don’t calculate. Generally, normal standard inventory is around 20% to 25% extra inventory to extract. Understood, understood.

The other question I had, sir, was if we look at this quarter numbers, despite the decline in QO, I’m talking about on a sequential basis versus Q4. Your GRMs have obviously declined quite sharply. And while retail fuel margins were fairly strong, even then the marketing earnings seem to be very, very robust in this quarter, given that some inventory loss Just wanted to understand, is the strength only from retail fuels or other product margins have also seen some strength in this quarter? Mainly retail fuels, mainly retail fuels only.

Other products marketing margins are at standard level, normally same levels. There is no big change in terms of marketing margin. But retail fuels definitely on account of low crude prices and there is no change in the RHPs, our margins are better. And last question, Right. So that got it.

And the lower LPG losses would have

Balaji Girish, Senior Manager, Finance, Bharat Petroleum Corporation Limited: so LPG on a per cylinder basis, what is the kind of

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: loss you have seen last quarter and right now? If you can just let us know. For

Conference Moderator, Antique Stock Broker Limited: the month of July, it’s around INR 100 per cylinder. And going forward July, August and going forward, August September, it’s around INR 30. And

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: what was it in Q1, ma’am?

Conference Moderator, Antique Stock Broker Limited: Q1 is around INR150 per cylinder.

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: Right. Last question, if I can squeeze any if you can give us the CapEx guidance for FY ’twenty six and FY ’twenty seven broken up into segments? FY ’twenty six, our estimated capacity is INR20000 crores. Till June, we have spent around INR2.300 crores. The progress is going on well.

By end of this year, we achieved this INR 20,000 crore. And the phasing wise, next year, are expecting around INR 20,000 crores to INR 25,000 crores. We are not round up for the number, but we are estimating around somewhere INR 22,000 crores to twenty five thousand crores. Thank you so much. I’ll come back if I have more questions.

Thanks so much. Thank

Conference Moderator, Antique Stock Broker Limited: you. The next question is from the line of Yash Nandwani from IIFL Capital. Please go ahead.

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: Sir, the Binah refinery reported GRM of only $4.5 per barrel in this quarter, which is notably lower than its usual trend of outperforming the Khochai refinery. So is it just because of lower crude and inventory losses or are there any specific reasons for the same? Major reason is our inventory buildup has happened during this month due to the geopolitical issues. So definitely there is an impact of high inventory carrying cost in the subsequent months processing. That is a major reason.

Otherwise, crude in terms of the percentage of Russian crude production, there is no big change. Maybe every quarter on quarter maybe 23% here and there it happens. But otherwise similar trends. And discount, Russian crude discount, compared to earlier quarters it has come down to almost $1.5 level, maybe these are the couple of regions. But major impact is an account of inventory buildup, nothing.

Okay, sir. And sir, with now crude prices now trending below $70 per barrel and OMC is also getting the compensation for LPG, are there any discussions underway regarding a cut in the auto fill prices? No, at this point of time, there is no discussions at all. If you see, still the geopolitical tensions are still it is uncertain. We don’t know how the trend will change suddenly.

We have to wait and see for some more time. Okay. And lastly on the with respect to Motaumbic asset, could you just walk us through the expected timeline for the restart? We are expecting this quarter definitely there should be some positive news because whatever the revised project cost, we are requesting the Mozambique government to consider the revised project cost for allowing that expenditure. That audit work is going up, maybe by end of this month or next month we are expecting certain positive news.

Praful Singh, Analyst, ICICI Securities: Okay. Thanks so much.

Conference Moderator, Antique Stock Broker Limited: Thank you. The next question is from the line of Yogesh Patel from Golod Capital. Please go ahead.

Praful Singh, Analyst, ICICI Securities: Thanks for giving me an opportunity, sir. Sir, what is your understanding on LPG compensation, which will be in 12 tranches? Is it a twelve months or some other time period? My second question is how much share of LPG compensation you will account in FY ’twenty six and FY ’twenty seven? If you give some kind of clarity on this matter.

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: Whatever information available through PIB, OMC has got INR 30,000 crore crore. We are awaiting the operating modalities, how the compensation mechanism happen. If we are awaiting any communication on the MOPNG, we have not received any communication, whether it is over a period of twelve months or a period of twenty four months. Actually, those details are not available at this point of time. Once we receive the details, then accordingly, we can share what is the impact of that.

Otherwise, market share point of view, BPCL, we are expecting at least 25% to 26% since we have the market share. So, our compensation should be within the same level of market share percentage, that is what we are expecting

Unidentified, Antique Stock Broker Limited: for BPCL. Sir, my second question

Praful Singh, Analyst, ICICI Securities: is again on the date side, a sharp decline in the gross date. Considering the EBITDA of this quarter INR9600 crore and the CapEx line up of INR20000 crore and the next year is little bit higher, Any particular net debt to EBITDA or debt to equity level we are targeting for the next few years considering our CapEx is on the rising mode?

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: We are not expecting any significant rate of debt equity even when we are seeing the peak CapEx is going to happen in FY 2027, 2028 and FY 2029. Our expected debt equity will be around one because that is those years where your cash inflow is lesser than your cash outflow in terms of CapEx investments. But once the projects are commissioned, then subsequent years may be new cash flows will come. Again, are comfortable at 0.4, 0.5 level of debt equity. So maybe subsequent to the project commissioning, we will come back to that 0.4, 0.5 level of debt.

That is where actually we are comfortable.

Praful Singh, Analyst, ICICI Securities: The last one

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: This from my year and next year, since our CapEx is reasonably at INR 20,000 to 22,000 crore level, so we are not foreseeing any good improvement in the debt equity, same levels of debt equity we can maintain, 0.1, 0.2 level.

Praful Singh, Analyst, ICICI Securities: And the last one from my side, what was the Russian crude share during the Q1? Sorry, I missed that part. And are we facing any issues on the financial are we facing any issues on the financial payments related to Russian Kotiba?

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: No, no. At this point of time, since the prices are low only below the threshold price, so there is no issue in terms of the payment side. And our crude procurement from Russia side is around 34% during the first quarter. Only slightly it has registered in the last month, but we are expecting again the flows will come back at normal level of 30% to 35%.

Praful Singh, Analyst, ICICI Securities: So it is expected that it will remain in the range of 30%, 35% for the remaining period of FY 2020.

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: That is what we are expecting. As long as there is no new sanctions on Russian Isles, so our procurement strategy will be around 30% to 35% of Russian crude. Thanks a lot, sir. It was really helpful.

Conference Moderator, Antique Stock Broker Limited: Thank you. Ladies and gentlemen, please limit to two questions for participants and rejoin the queue for the follow-up question. The next question is from the line of Vivekananda from Ambit Capital. Please go ahead.

Balaji Girish, Senior Manager, Finance, Bharat Petroleum Corporation Limited: Yes, hi. Thank you very much for the opportunity. I have two questions. So the first one, the impairment of INR1773 crore, that has brought down your carrying value in BPRL to around INR4.5 thousand crore. Is that how one should infer it?

Or was there any other subsidiary or joint venture where there was an impairment? That is question one. The second question is on your gas SBU. So some of the other players in the gas space, are consolidating their gas assets. If I look at your gas vertical, you have the BGRL now being part of VPCL as an SBU.

And then you have shareholding in several large CGD entities, which are some of which are also carrying out investment. So I just want to understand from your perspective, you are going to invest a lot of money in the gas vertical. But let’s say to shine some spotlight on that and perhaps for investors to get more comfort on the value creation that is happening? What are the steps you are taking? Because we understand there are three listed entities.

Right? There is I PetroNet. There is IGL. These are I mean, these are two prominent gas entities, but there are several others that are in varying stages. And perhaps investors view gas more positively than oil companies, so valuation is higher there.

Is there any concerted effort for you to look at the gas vertical any differently than the current structure? And your broad thoughts there will help. Thank you.

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: Yes. Rightly, you said our focus in gas is significantly higher as compared to other fuel stations. And we have a very good amount of capital allocation for gas. Mainly, our first strategy is to complete our minimum work program in terms of completing the CNG stations and PNG connections and whatever minimum kilometer length pipeline infrastructure we have to create. That is where our first focus.

In terms of certain JV investments, already certain companies already we have listed. And some other couple of companies, which has reached a stage where we can look for listing of those particular JV companies. So that is where actually initially we are thinking now one of the JV M and GLs. There we have given an infincipal approval for listing of this particular company and submitted our proposal to the Ministry and Jepam. We are awaiting for that.

In terms of consolidation, we not at that particular stage at this point of time. We have to reach a particular scale and we can look at it as a consolidation. We are also looking at it. There are some small JV companies, instead of keeping the small JV companies, maybe consolidation is the right choice. We are working on it, but we have not yet concluded anything on this, but that exercise is going on.

BPRL impairment, whatever impairment we have done in March 25 only this quarter, there is no further impairment. But in our Ontario impairment, the major portion is BPRL only, other JV company investments impairment is very small, maybe INR10 crores, INR15 crores where certain JV companies we are in the process of liquidation. But other majority portion of our impairment is mainly on account of BPRL. Okay. So the current state is that you still are quite confident of the carrying value of, sorry, 60,000,000,000, I was I said wrongly initially.

It was around INR 6,000

Balaji Girish, Senior Manager, Finance, Bharat Petroleum Corporation Limited: crores. So you are confident of that value remaining intact given the continuous delays in Mozambique?

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: Right, right. Every year we do the testing impairment testing, whatever is required based on the circumstances and the particular reporting date, whatever additional impairment is required every year we are providing. As of March 25, as per the impairment working, is valid.

Balaji Girish, Senior Manager, Finance, Bharat Petroleum Corporation Limited: Okay. Thank you very much and all the best.

Conference Moderator, Antique Stock Broker Limited: Thank you. The next question is from the line of S Ramesh from Nirmal Bank Equities. Please go ahead.

Yogesh Patel, Analyst, Golod Capital: Thank you and

Balaji Girish, Senior Manager, Finance, Bharat Petroleum Corporation Limited: good morning and congratulations on your performance. I have two broad questions. One is in your consolidated accounts, the JV share of earnings have gone up. So what has driven that? And if you look at the segment results, there is a huge increase in the profits.

In fact, there’s a turnaround from loss to profit of INR $8.90 crores in the E and P business. So what is the reason for that? And then I have a few questions on the C and P business. So if you can address these two thoughts, then I’ll go to

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: the C and P one. So this time, our group has given an incremental profit after tax of around INR800 crore. Mainly it is coming from Bharat Petrol Resources around INR450 crore they have contributed in the group. The main profit after tax is generated in BPRL mainly on account of currency fluctuations. This particular quarter, the ruble again at rupee is significantly appreciated, where some of our funds are paramed to rubles only because we could not be in a position to take the money as dividend move to India due to some taxation issues and certain controls.

So that was the reason on account of ruble appreciation against dollar, this quarter significant currency fluctuations have happened. Positively, BPRL has generated a good amount of profit. And all other JV companies have performed well. Okay.

Balaji Girish, Senior Manager, Finance, Bharat Petroleum Corporation Limited: So on the CNG business, in terms of the stand alone numbers you shared, can you give us a number of CNG stations operating in the stand alone GAs? And what was the number for the volume of CNG sales in the stand alone stations for fourth quarter ’twenty five and first quarter ’twenty five?

Yogesh Patel, Analyst, Golod Capital: Yes.

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: Total CNG, total stations 2,464 of CNG stations in our network, which they are selling the CNG. And whereas the volumes, we have three thirty nine TMT in our own GA plus through our retail outlet, we are selling at two sixty nine. Around 600 TMT, have sold CNG from our own GA as well as through our retail outlet network. Yeah. So can you give the corresponding number for

Balaji Girish, Senior Manager, Finance, Bharat Petroleum Corporation Limited: the turnaround GAs in last year, 01/2025, just to understand the progress?

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: That we said. That we said. That we said. So if you look

Balaji Girish, Senior Manager, Finance, Bharat Petroleum Corporation Limited: at the numbers, there seems to be some factor in terms of positive EBITDA. So are we right in assuming that, you know, on this kind of run rate, you’re already achieving some profit in your results in your annual numbers?

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: I’m not clear, can you repeat? EBITDA contribution from the CNG GA. EBITDA generation is in the expected lines only. Once our infrastructure investments are completed, full volumes we are expecting. Although till date only we are getting only every year maybe 120, 130 TMP of sales through our CNG network.

Once that entire CNG commissioning happens then good amount of volumes will come. EBITDA margin side as expected line on the gas. So on

Balaji Girish, Senior Manager, Finance, Bharat Petroleum Corporation Limited: the depreciation run rate, now you’ve increased about INR200 crores this quarter. So in terms of the capitalization on the CNG sales, what would be the total adjusted capitalization rate in

Yogesh Patel, Analyst, Golod Capital: the CNG side of the base?

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: As on date, it will be around INR7900 crores in the entire gas business we have invested. Okay.

Balaji Girish, Senior Manager, Finance, Bharat Petroleum Corporation Limited: Thank you very much and wish you all the best.

Conference Moderator, Antique Stock Broker Limited: Thank you. Next question is from the line of Hardik Sonalki from ICICI Securities. Please go ahead.

Praful Singh, Analyst, ICICI Securities: Thanks for the opportunity. So just want to know, as you said that we have processed 34% of the Russian crude, but still if I look at the high sell for percentage of the total crude, it has gone 200 basis points down. So can you just explain what has dropped the high sulfur crude processing?

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: No. There is no specific reason because based on the product demand, we may take a little bit low sulfur grade. So WTA grades are a little bit more on the consumption side, that is 1% down in terms of high sulfur consumption. Last quarter, was 77, whereas this quarter, is 76%, small change. Quarter on quarter, it may vary around 1% or

Praful Singh, Analyst, ICICI Securities: 2% here and there. That’s helpful. Thanks.

Conference Moderator, Antique Stock Broker Limited: Thank you. The next question is from the line of Tideesh Jain from Axis Capital.

Tideesh Jain, Analyst, Axis Capital: Sir, I wanted to know how do unit economics work at the charging stations? And how much EBITDA will be contributing in FY ’twenty seven?

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: If you ask me in terms of financial contribution, very insignificant. So investments are also around INR250 crores to INR300 crores our total capital outlay in terms of this infrastructure creation because we have received a good amount of subsidy from the Government of India also. So the investment side is around INR300 crore. We are not expecting a very big EBITDA from the CV charging station, but only it gives the convenience to the customers who are already coming to our forecourt, whatever fuel they want, including the charging station, it is available at the retail outlet. If you ask me the total, maybe we can expect INR 10 crore or INR 15 crore of EBITDA from EV charging station.

Tideesh Jain, Analyst, Axis Capital: Also on the unit economics and sir, is that something how much

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: economics, if you ask me in terms of the number today, we are having a 2% capacity utilization. So there is no profit generation from this particular thing now because we have to wait and see because we have to create infrastructure faster than once the vehicle population goes up maybe in the subsequent next two, three years onwards, maybe there may be some good volume. Otherwise, today, it is only 2% of capacity creation.

Yogesh Patel, Analyst, Golod Capital: Okay. Thank you. Thank you.

Conference Moderator, Antique Stock Broker Limited: Thank you.

Kishan Mundra, Analyst, DAM Capital: The

Conference Moderator, Antique Stock Broker Limited: next question is from the line of Vikash Jain from CLSA. Please go ahead.

Yogesh Patel, Analyst, Golod Capital: Hi, sir. Thanks for taking my questions. Firstly, I mean, your debt number is clearly a great surprise. This is the lowest debt number we’ve seen in at least fifteen years or so or even more. I just wanted to understand this INR 13,000 crore kind of a move down, how part of it would be, of course, end of the year excise duty and other linked payments that you have to make in advance.

So part of that will be because of that. Where is the others coming from? Yes, of course, there’s the cash profit that you have generated, but is there a release from working capital, which is perhaps a bit temporary or something like that? Where is this INR13000 crores decline coming from, breakups, if any?

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: If we compare from March 25 and June 25, there are two major changes. One is definitely excise duty because end of the year we have to pay in the month of March, whereas during the year you have a seven days’ time, I mean the subsequent month you can pay that is around INR7000 to INR8000 crore. And secondly, due to the low prices of inventory, even similar volumes we are maintaining, the value of the inventory is coming down around INR3000 crores, so it is really just the working capital to the next. These two are the major reasons. Otherwise, our current liabilities, financial liabilities more or less, it will be in the same range.

And second, by end of the year, for example, if we receive that LPG subsidy, maybe in the next one or two months, definitely it helps a lot in terms of cash flow. So we are not expecting any big way debt equity levels will go. As long as crude is around $65

Yogesh Patel, Analyst, Golod Capital: to $70 range. So your estimate, sorry, I’m not sure

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: if you repeated that. What is your estimate of the INR30000 crore that you would receive? INR25 crores to INR26 crores in between. Exactly, we don’t have the number now. Once the communication from the ministry, then we’ll come to know.

But otherwise, as per our market share INR500 crores to INR8000 basically. INR75 crores to INR8000 crores in the range.

Yogesh Patel, Analyst, Golod Capital: Okay. Just one more thing. So other income is uncharacteristically high for a January number. Is there anything that is happening here? Because typically, the other quarters are higher.

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: Mainly surplus funds. We have good amount of surplus funds and have made 60 deposit, one year fixed deposit, which is at 7.5 or 7.8 level. During the March, we have made that in 2020. So that is the reason, mainly in interest income only. All other interest

Yogesh Patel, Analyst, Golod Capital: income There is no real one off or anything like that?

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: No, no, nothing. Nothing.

Yogesh Patel, Analyst, Golod Capital: This is only The ForEx is a small ForEx gain, but that’s very small. Will the part

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: of other income now or? No, no, Because we don’t have any foreign currency borrowings, so whatever it is, crude payment related.

Yogesh Patel, Analyst, Golod Capital: Okay, understood. And should I say that for CapEx, FY ’twenty six you said is 20,000, FY ’twenty seven you said would be slightly higher, but FY ’twenty eight would be the biggest number Yes, of we are expecting around

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: INR 30,000 crore FY ’twenty eight, INR 34,000 crore FY ’twenty eight and INR 28,000, 29,000 around INR 35,000 crore that is at based on the current approved projects, in case if any new projects are added, the CapEx numbers will vary. However, based on the current approved projects, INR 26,000, 27,000, are expecting around INR 20,000 to INR 25,000 crores. But 27,028 we are expecting INR 35,000 crores and $28.29 also in the range of INR 35,000 Okay.

Yogesh Patel, Analyst, Golod Capital: Thank you so much, sir. Those are my questions. Thank you.

Conference Moderator, Antique Stock Broker Limited: Thank you. The next question is from the line of Mayank Maheshwari from Morgan Stanley. Please go ahead.

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: Sir, thank you for the call. A few questions more from a marketing perspective on fuels. One in terms of diesel, especially on retail diesel. Can you just tell us how your market share has trended on retail diesel? And the second question was in terms of industrial side.

Obviously, I think there is a reasonable amount of competition. Can you just say what’s going on subjectively from a competition perspective? And how does the recent regulatory changes on ATF pipelines impact you from a market share perspective on jet fuel? Thank you. One is HSD retail side, our market share during this quarter is 29.59 compared to previous quarter, slightly to the reduction side.

And HSD direct, yes, we are facing a good competition from the private sector. Private sector has given good amount of discounts in the market, but we are not participating in the discount game. A little bit, we are behind in terms of diesel growth in direct segment. But however, it’s only temporary. Once margins are settled, this discount game will not be there.

We are expecting our market share will come back even in the direct business also. So in terms of aviation, our market share during this quarter is 26.51%. Last quarter, it was 21.78 but we have come back and we have taken back our own volumes from other customers and we are back to 26.51 And sir, does this change in the regulatory opening of the pipeline network impact you in terms of competition at all on ADS? No, I think we are not expecting any big change in terms of any policy in terms of the pipeline. Whatever pipelines we have, captive pipelines we have, even if there is any change in the policy, we are objecting that the captive pipeline should be with respect to

Unidentified, Antique Stock Broker Limited: refineries only. Let us see how it happens. Got

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: it. Thank you.

Conference Moderator, Antique Stock Broker Limited: Thank you. The next question is from the line of Kishan Mundra from DAM Capital. Please go ahead.

Kishan Mundra, Analyst, DAM Capital: Hi, sir. Just one question from my end. So sir, whenever this geopolitical tensions settle down and whenever you move back to daily fuel price revisions on petrol and diesel, sir, what is your estimate of where would the normalized margins what would the normalized margins look like on the toll and diesel?

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: Today, I cannot say when the daily pricing is going to happen and other things. So everything depends on the crude prices, how the crude prices move. What we can see is that as long as crude prices are at 65 to 70 range, our margins will be better. So there is no standardized margin for a methane mechanic in this scenario. It all depends on the crude prices.

If the crude prices are on lower side, since our pricing RSPs are not changed, so our margins will be better. So if crude prices goes beyond 70 or 75 level once it reaches, then a little bit pressure it creates on the margin. But what would be the standard margins, we cannot comment at this point of time because we are not in a daily pricing mode. Not now, sir, but

Kishan Mundra, Analyst, DAM Capital: let us say, theoretically in three to six months down the line, crude prices are at 60 and you move back to a situation where there is a daily pricing, which is possible. In that scenario, can you guide us to what could the margins look like? Would it be INR5, INR5,

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: INR4, INR6 a liter? No, with these large CapEx programs in hand, if the standard margin is around Rs. 2.5 or Rs. 3 level, also we are comfortable.

Kishan Mundra, Analyst, DAM Capital: This Rs. 2.5 to Rs.

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: 3, you said, this is after deducting freight transportation? Our expenses after expenses averaging. This is a net retention.

Kishan Mundra, Analyst, DAM Capital: Okay, understood. Understood. Thank you.

Conference Moderator, Antique Stock Broker Limited: Thank you. The next question is from the line of Soma Vibh from Avanaspa. Please go ahead.

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: Thanks for the opportunity, sir. So my first question is on

Conference Moderator, Antique Stock Broker Limited: Sorry to interrupt. We cannot hear you. I request you to use handset while asking a question.

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: Yeah. I hope I’m audible now. Yeah. Sir, my first first question question is on LPG under recovery. So when we book LPG under recovery, does this also include the normal marketing margins that we would have made?

So for instance, if we say INR 100 is the under recovery per cylinder, so this includes the normal margins that we should have made or it’s just that INR100 is the breakeven requirement and this normal margin is not included in that? No. When we calculate any under recovery, that is beyond our margins. Our margins, we calculate on the margins plus whatever is actual under record, actual under record. So whatever money it comes back, it is beyond our margin.

So let’s say, we get INR100 high, so that will compensate or bring us back to the normal run of margins to Right, It’s under equity not in it’s under equity including the margin. Okay, understood. The second question is on the CapEx. If you could give some break in terms of segments for this INR 20,000 this year and the INR 20,000 to 23,000 crores next year? And also an update on the Bina project?

Yes. Currently, INR 20,000 crores approximate around INR 6,500 crores we are going to spend in refinery plus petrochemical projects. And the marketing side around pipeline INR1400 crore and ROO expansions including the CNG network around INR4000 crore. Out of CGD, are going to spend around INR1385 crore. And BPRL this year we are expecting around INR2500 crores of equity investments.

And LPG including the cylinders and marketing infrastructure we are creating around for INR2000 crores. This is a broader breakup for INR20000 crores for twenty five-twenty six. And for INR 20 six-twenty 7 similar level, Refined Express Petrochemicals around INR 11,000 crore we are going to spend and BPRL equity requirement for next year will be around 2,500 crore and CGD we are going to spend around 2,200 crore. And marketing initiatives including the RO expansion and whatever marketing infrastructure related depots and inflation will be around INR6000 crore. So overall next year we are expecting around INR22000 to INR25000 crores range.

Helpful, sir. So this refinery and pit chem, which we are seeing around INR6000 crores, this will predominantly be for and also Bina progress in terms of completion and the CapEx, let’s say, Girmat so far and how much we have completed? Yes, Bina 14.2% we have achieved and CapEx, INR600 crores PP we have, we are going to spend by end of this year and Binah we are going to spend around INR4600 crores cumulative by end of this year for Binah. Sir, one clarification. In the opening remarks, you did mention about an upgradation CapEx in Mumbai refinery.

Could you help us, I mean, any time line around when the project is expected to start and some final details on that? Yes. Our Board has approved this project during this quarter. The mechanical completion by May 2029, this is an expected schedule time line. This is having two parts.

One is replacement of existing FCC and CCU unit with an upgraded version of PetroRFCCU. So it will have residual upgradation also. The total capital outlay will be around INR40.200 crore on a gross. We are expecting May 29 is the scheduled date coming. And work on this will start with you?

Work has started already. Work has started. We are in the process of appointing the PMC. We working on the license selection. Work has started, initial work has started.

Got it, sir. Thank you, Vedulisi.

Conference Moderator, Antique Stock Broker Limited: Thank you. The next question is from the line of Arjun Shah from Ambit Capital. Please go ahead.

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: Sir, am I audible? Sir, I wanted to understand a bit about the lubricant business. So can you give a sense of the lubricant volumes, EBITDA margin and market share for FY ’twenty five? Also wanted to understand, like, what is the volume uptick we saw after the 2023 Promotional scheme? How has volumes increased after that?

EBITDA numbers, see, individual product range, we cannot share EBITDA number. But volume wise, this April to June, we have total volume of 78.7 PMTs we have sold other than retail. Last year, was 83.4%, slightly the loops volumes have been grown by 6%. Mainly there are certain technical issues in our lube oil blending plant. So that was the reason the production is a little bit lower as compared to the planned production.

So current quarter, it is 78.7 TMT lubricants. Sir, would it be possible to share the FY ’twenty four and ’twenty five number volume at least? Yes, we

Unidentified, Antique Stock Broker Limited: will share. Yeah. We will share.

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: Sir, my second question is on as you mentioned that is doing, like, the best throughput per outlet, the OMC, but, like, we are lagging the private retailer on a throughput per outlet basis. So is it because of the high outlet count which ONGs have compared to the private players? Or is there any other way to look at it if they have no share of higher outlets? Or like can you make sense of this data point? This quarter, they are getting good volumes mainly because of the margins, high margins, they are in a position to pass on a little bit more discount to the customers.

So that discount VM, we are not participating in the discount VMs, right? In some other markets, have extended certain schemes, but not in all the markets. And secondly, their concentration is mainly uncertain areas, so their concentration is not there in the rural segment. That may be one region their RO volumes are comparatively better. But since we are a large organization presence across India, we have every market we have our presence, including the rural segment, the ABCD market, highway market, everywhere we have our presence.

So it cannot be comparable per RO volumes with private sector and PHOs. So what we can compare is that within the PSOs, so where do BP thirty can. Understood. Sir, just one last question is like on the ONC market rate margin. So on a per kg or per SEM basis, what is the rate margins which OMC outlet charges to the CDD like when they are supplying gas on our like on BTC retail outlet?

That will be around INR 2 per kg only. The retailer margin is around two per kg only, actually. Where we are selling CGD in their years, the retailer margin is around two. Sir, like, that will be the margin which VPCs are in? Or Retailer.

Whoever retaining, the retailer will have. Like, VPCL, if we are retaining in our core port, then we will get that market. Understood. Thanks for the color.

Conference Moderator, Antique Stock Broker Limited: Thank you. The next question is from the line of Sukrit Patil from Aitite Pendrite Private Limited. Please go ahead.

Praful Singh, Analyst, ICICI Securities: Good afternoon to the Bharat Petroleum team. I had a

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: specific question for mister Pankaj Kumar.

Praful Singh, Analyst, ICICI Securities: So is mister Pankaj Kumar online?

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: Yes, sir. I’m there. Yes, sir. Good good afternoon, sir.

Praful Singh, Analyst, ICICI Securities: My name is. I just want to understand a forward looking question on regards to capital allocation. As BTCL is expanding its footprint in EV charging bio biofuels and hydrogen, How is corporate finance evolving its capital deployment philosophy to support these new verticals? And is there a shift towards platform based valuation models or any JVs or partnerships that could unlock nonlinear returns beyond the traditional refining and marketing metrics? Yes, sir.

Thank you very much.

Kishan Mundra, Analyst, DAM Capital: Yes, thank you. Thank you for the question. I think the broad breakup of the CapEx plan already Director of Finance has shared, we have a broad roadmap of major projects, which have already been announced about INR 1.5 lakh crore. And you would have observed that we have actually been generating good cash flows from our existing operating business and that is giving us a good strength for funding these projects going forward. We are having very comfortable debt equity at this stage.

So there are projects actually, some of these refining projects, which we are going to do in our existing refineries will be on the balance sheet of BTCL. And that would be with a debt equity of about one:one up to one:one, we are comfortable. At the same time, there could be projects that we would be taking up, which would be in the joint venture format also, both organic growth potential as well as inorganic, particularly in the new business areas like renewable, etcetera. So, we are also planning to put up a CBG plant, 26 CBG plant in which we would have some which would be direct investment project and some will be put up through JVs, about 16 will be put up through JVs. So therefore, in both these cases, projects which are being put up on our own balance sheet strength, we have considerable leverage available at this point of time, and we would be able to sustain that given that phased manner in which these projects are being implemented.

And the joint ventures also our proportionate capital allocation will be considerably modest in that sense because the partnership also will be contributing. And there would also be particularly in renewable, etcetera, we would be actually be putting up on a high debt equity particularly renewable. And we are targeting good IRR for all these projects in the range of 12% to 15%. So therefore, we expect this to be quite comfortably funded from a capital allocation perspective.

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: Great, sir. Thank you

Praful Singh, Analyst, ICICI Securities: very much for the guidance, and I wish you the best of luck and looking forward to hear you on

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: the next Q2 phone call. Thank you very much. Thank you.

Conference Moderator, Antique Stock Broker Limited: Ladies and gentlemen, we’ll take this as the last question for today. I would now like to hand the conference over to Mr. Vartarajan for closing comments.

Unidentified, Antique Stock Broker Limited: Sir, Vikram, if you have any closing comments, please go ahead, Mr. Gupta.

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: Nothing. We hope we have replied for all the questions. If anything is pending, our team will share the information. Great. So, I wish to thank all

Unidentified, Antique Stock Broker Limited: the participants and the management of the TCL for patiently answering all the questions. Thank you everyone and have a nice day. Thank you. Thank you.

Conference Moderator, Antique Stock Broker Limited: Thank you very much. On behalf of Antik Stock Broking Limited, that concludes this conference. Thank you for joining us

V. R. Gupta, Director, Bharat Petroleum Corporation Limited: and

Conference Moderator, Antique Stock Broker Limited: you may now disconnect your lines.

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