First Read: Bharat Petroleum "Refining outperformance and inventory gains..."

Research evidence excerpt

First Read: Bharat Petroleum "Refining outperformance and inventory gains..."

Global Research

24 July 2026ab

First Read

EquitiesBharat Petroleum

Refining outperformance and inventory gains India

kept losses in check Oil Companies, Major

12-month rating Neutral

12m price target Rs365.00

What were the key takeaways from the earnings call?

Sourcing: Bharat Petroleum (BPCL) management highlighted spot crude sourcing of

69% in Q1FY27 (44% in Q4FY26) as term cargoes were unable to transit the Strait of Price (22 Jul 2026) Rs314.50

Hormuz. The share of Russian grades stood at 38% during the quarter. Gross Refining RIC: BPCL.BO BBG: BPCL IB

Margins (GRMs): Management disclosed GRMs at Bina/Kochi/Mumbai refineries were

Trading data and key metrics

US$57/39/34 per bbl, which translated to an average US$41/bbl GRM before

SAED (special additional excise duty) and US$17/bbl GRM after SAED for the company, 52-wk range Rs387.80-271.50

materially above Singapore benchmark (US$24.5/bbl). Bina project: Bina refinery and Market cap. Rs1,364b/US$14.1b

petrochemical expansion project is at 31% completion, with Rs59bn being incurred till Shares o/s 4,339m (ORD)

date (total project cost of Rs498bn). Capex: Q1FY27 capex stood at Rs44bn, and Free float 36%

management guided for FY27 capex of Rs250bn. Upstream subsidiary: Mozambique Avg. daily volume ('000) 9,287

LNG project has achieved 42% completion and first LNG cargo is expected in FY29. Avg. daily value (m) Rs2,809.9

Common s/h equity (03/26E) Rs1002b

How did the results compare with expectations? P/BV (03/26E) 1.3x

BPCL reported EBITDA of negative Rs41bn in Q1FY27 vs UBSe of negative Rs110bn, Net debt to EBITDA (03/26E) 0.6x

aided by marketing inventory gain of Rs31bn (UBSe Rs5bn) and forex gains of Rs3.5bn

EPS (UBS, diluted) (Rs)