First Read: Hindustan Petroleum "Crude sourcing diversified; macro risks..."

研报英文原文证据摘录

First Read: Hindustan Petroleum "Crude sourcing diversified; macro risks..."

Global Research

14 May 2026ab

First Read

EquitiesHindustan Petroleum

Crude sourcing diversified; macro risks continue India

Oil Companies, Major

12-month rating Sell

What were the key takeaways from the earnings call?

Sourcing: In the current challenging environment, HPCL is being able to secure crude 12m price target Rs340.00

supplies (about two months in advance, as typical) by diversifying sourcing (lower

Middle East supplies offset by increased sourcing from Russia and West Africa), though

Price (14 May 2026) Rs390.10

pricing has been elevated. Further, crude sourcing is not being optimized to the usual

extent, adversely impacting distillate yield and refining margins. Management expects RIC: HPCL.BO BBG: HPCL IB

losses in Q1FY27 as elevated feedstock cost has not been passed through to consumers. Trading data and key metrics

LPG sourcing has shifted from term contracts from the Middle East to spot purchases

52-wk range Rs499.00-319.25

(particularly from the US), though reduced availability, increased voyage days, and

Market cap. Rs830b/US$8.67b

higher international LPG prices remain a challenge. Leverage: Consolidated net debt

Shares o/s 2,128m (ORD)

declined 23% YoY to Rs507bn, driven by strong operational performance, cost

takeouts, and prudent management of capex and working capital. Visakh refinery Free float 49%

RUF: The resid upgrade facility (RUF) faced commissioning challenges in February. Avg. daily volume ('000) 8,447

Management expects the RUF to achieve full utilization in a couple of months and Avg. daily value (m) Rs3,118

deliver benefits (better distillate yield) from Q2FY27. Rajasthan greenfield JV Common s/h equity (03/26E) Rs656b