Q3 2026 Hindustan Petroleum Corp Ltd Earnings Call Transcript
Key Points
- Hindustan Petroleum Corp Ltd (BOM:500104) successfully commissioned the Visakh project, marking a significant milestone in technical advancement for the company and the Indian refining industry.
- The company reported a strong financial performance with Q3 profits of INR 4,072 crores, up by 32.6% compared to the previous year.
- Operational efficiencies have improved, with a reduction in OpEx as a percentage of turnover from 1.60% to 1.37% year-over-year.
- The company has significantly deleveraged, reducing its leverage ratio from 1.37 to 0.86, resulting in lower interest costs.
- Hindustan Petroleum Corp Ltd (BOM:500104) has entered into a competitive 10-year gas deal with ADNOC, enhancing its long-term supply security.
- The Mumbai refinery incident negatively impacted the company's GRM by $3.5 per barrel, affecting overall profitability.
- Despite strong financial performance, the company's market capitalization remains undervalued compared to its peers, trading at a significant discount to asset value.
- There are concerns about potential excise duty changes, which could impact future profitability, although the company is preparing for various scenarios.
- The Rajasthan refinery project has experienced cost overruns, with the total outlay nearing INR 80,000 crores.
- LPG under-recoveries have increased due to rising Saudi CP prices, leading to higher losses per cylinder.
Ladies and gentlemen, good day, and welcome to Hindustan Petroleum Corporation Limited Q3 FY26 Earnings Conference Call. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Varatharajan Sivasankaran.
Thank you, and over to you, Mr. Sivasankaran.
Thank you, Renju. A very good morning to everyone. It's my absolute pleasure to welcome all the participants and the management of HPCL to the results conference call this time around as well. We have with us, Mr. Vikas Kaushal, Chairman, Managing Director; Mr. Rajneesh Narang, Director Finance; Mr. S. Bharathan, Director refineries; and Mr. K. Vinod, Executive Director, Corporate Finance.
We request Mr. Vikas Kaushal to do the introductory comments and then we can move on to the Q&A. The floor is yours, sir.
Yes. Good morning, Siva, and thank
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