Q1 2026 Hindustan Petroleum Corp Ltd Earnings Call Transcript
Key Points
- Hindustan Petroleum Corp Ltd (BOM:500104) reported a strong quarter with a 15.6% increase in refining throughput and 109% capacity utilization.
- The company achieved a significant profit after tax of INR4,371 crores, marking an 11-12x increase compared to the same quarter last year.
- The Vizag refinery expansion project has doubled its capacity from 8.3 million tonnes in 2022 to 15 million tonnes, contributing to improved performance.
- Operational efficiency programs like Samriddhi and Abhyuday are underway, aiming to enhance EBITDA by INR1,000 to INR1,500 crores through cost savings and increased throughput.
- The company is actively expanding its crude basket, processing four new types of crude, which has contributed to operational improvements and cost efficiencies.
- Hindustan Petroleum Corp Ltd (BOM:500104) faced inventory losses of INR1,400 crores in the refining segment and INR600 crores in the marketing segment.
- The company is awaiting government decisions on LPG compensation, which could significantly impact financials but remains uncertain.
- Refinery margins were lower than expected, with a reported GRM of $3, despite improved crack spreads, indicating potential operational inefficiencies.
- The company experienced a loss in market share in both diesel and gasoline segments, attributed to increased competition from private players.
- The Rajasthan refinery project faces challenges due to depressed petrochemical spreads, impacting the economic viability of the project.
Ladies and gentlemen, good day, and welcome to Hindustan Petroleum Corporation Limited results conference call hosted by Antique Stock Broking Limited. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Varatharajan Sivasankaran from Antique Stockbroking Limited. Thank you, and over to you, sir.
Thank you. A very good morning to everyone. It's my pleasure, as always, to welcome all the participants and the management of HPCL, represented by Mr. Vikas Kaushal, Chairman, Managing Director; Mr. Rajneesh Narang, Director Finance; Mr. S. Bharathan, Director Refineries; Mr. K. Vinod, Executive Director, Corporate Finance.
The floor is yours, sir, for your initial remarks.
Good morning, everybody. Thank you for joining the call, and thank you for your continued interest in HPCL, and thank you team for
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