Bharat Petroleum Corporation Ltd Q4 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Praful Singh - ICICI Securities - Analyst : Thank you for the opportunity. Very good morning, sir. Thanks for hosting the call. Firstly, on the refining performance, just wanted to understand the components of this $3 plus premium that we have done. Is it fair to assume that there is some inventory gain that was there in the quarter? And the second part of this question is, did we have if we can just tell us what kind of Russian crude percentage was there even in fourth quarter in terms of overall crude sourcing? That was my first question. Yeah. From the refining side, we don't generally calculate what will be the inventory gain because our average inventory is less than one month only. So we don't calculate any separate inventory gain.

Question: Praful Singh - ICICI Securities - Analyst : So the second question was about the expansion projects. You know, in terms of the thought process, you have setting up yet another greenfield refinery.can we just get a little bit of sense of what the configuration could look like? What kind of crude sources will be there for the refining and what sort of an all-time high lines we are looking at for commissioning for the under this greenfield project Marlin project that you refrain.

Question: Praful Singh - ICICI Securities - Analyst : One last question, if I may, sir. With respect to Mozambique, thank you for sharing that, you know, there is progress and there is forward movement. But we have also taken a INR17 billion impairment. Can we just understand what which project this impairment relates to in this quarter?

Question: Praful Singh - ICICI Securities - Analyst : Now, sir, we are expecting the force majeure to be lifted sometime in this calendar year. Does it look like probability?

Question: Praful Singh - ICICI Securities - Analyst : Thank you so much.

Question: Sabri Hazarika - MK Global Financial Services - Analyst : Yeah. Good morning, and congratulations on a good set of numbers. So just a bit more on the refining margin side. So so we could understand, I mean, you have less than one month of inventories. But is it the same across all the refineries or for Bina, it is higher? Because I think Bina reported the other was close to $15 And if I look into the various cracks and all, sequentially, it has come down only. And OSPs have also expanded, Russian discounts have also fallen to 24% like you have said, Russian crude share. So, it's the same impact across all three refineries or there could be, like, something related to inventory, especially on Bina? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 5:30AM, BPCL.NS - Q4 2025 Bharat Petroleum Corporation Ltd Earnings Call

Question: Sabri Hazarika - MK Global Financial Services - Analyst : So in terms of refining margin guidance, so if we consider these these Q4 yields to, say, sustain over the next one year. So are we seeing, like, $9 here or you think it could be, like, some other range and some guidance on the year based on the current tax?

Question: Sabri Hazarika - MK Global Financial Services - Analyst : $3 to $4 is the current discount of Russian?

Question: Sabri Hazarika - MK Global Financial Services - Analyst : Right. And and this light heavy switch are that has also become more favorable now that OPEC is raising production or with respect to impact on Kochi Refinery in particular

Question: Sabri Hazarika - MK Global Financial Services - Analyst : So and Mumbai refinery will see some benefit from increasing OPEC production.

Question: Praful Singh - ICICI Securities - Analyst : Right. And just one small question on the marketing side. So you mentioned 170 rupees is the current under recovery, and I think LPG prices have also been quite sticky. It's not fallen to the extent crude has fallen. So how do you see the overall cash flow scenario given that you'll be doing INR 20,000 crore number

Question: Sabri Hazarika - MK Global Financial Services - Analyst : Right Okay. So, thank you so much.

Question: S Ramesh - Nirvan Bank Equities - Analyst : Thank you very much and congratulations on your results. Sir, if you go back to the question on gross refining margin, sequentially the GRMs have improved across all the three refineries. So is it a function of, you know, the yields Or is there some benefit from the secondary processing units or the growth rate? Or how does that explain that the increase in the four two margins compared to 03/02 of FY twenty five? Yeah.

Question: S Ramesh - Nirvan Bank Equities - Analyst : So if you look ahead to FY 'twenty-six based on the current retail spread and the current refining margins, there any other, you lever you have in terms of growth in your EBITDA and profitability for FY '26 as you look at the, you know, portfolio, including the industrial products other than petroleum diesel

Question: S Ramesh - Nirvan Bank Equities - Analyst : o on the CGD business, can you give us some sense in terms of what is the asset capitalized and how do you see the, you know, P and L for the CGD business moving on your stand alone GAs over the next one to two years?

Question: S Ramesh - Nirvan Bank Equities - Analyst : Thank you very much

Question: Mayank Maheshwari - Morgan Stanley - Analyst : Thank you for the call, sir. Two questions from my end. One was related to fuel marketing. If you look at over the last year or so, you have seen a bit of a decline in your market share on retail fuel market, especially on diesel and gasoline. And even on industrial side as well, suppose you have lost some market share. How are you kind of thinking about from a strategy perspective in terms of the next few years on the market share and where do you think to kind of settle it on the transportation side specifically in terms of market share for you?

Question: Mayank Maheshwari - Morgan Stanley - Analyst : Got it, sir. And the second question was in terms of on the petrochemical side. Can you just give us a details around how much EBITDA and earnings you made on the on petrochemical?

Question: Mayank Maheshwari - Morgan Stanley - Analyst : Got it. Thank you.

Question: Sumit Rohrab - Smart Sun Capital - Analyst : Hi, sir. Good morning, and thank you for the call. And sir, I would like to start by telling you that it's been a commendable performance, you know, especially if you, you know, look at the LPG under recovery, what you absorb. Sir, I have a question very clearly, you know, as an investor on this point. I mean, if you see in FY twenty-four, you know, we reported a profit after tax of about 24 25,000 crores. And in this financial year, you've reported 13,000 crores after absorbing about 10,500. So sir, is my understanding correct that, you know, our profit profitability including LPG because obviously it's a controlled product for governments will compensate you. It's just a matter of time. So can we say that now, you know, our profits have reset to a new standard and, you know, we can assume that the profits which we reported over the last two years are sustainable profits over the next couple of years, sir? That's my first question.

Question: Sumit Rohrab - Smart Sun Capital - Analyst : So can we assume that we are going towards a period where the could actually be reconsolved once it's market where market aligns? No such communication at this point or no such discussion at any level. Okay. Thank you, sir. And wish you all the best

Question: Sumit Rohrab - Smart Sun Capital - Analyst : Okay. Thank you, sir. And wish you all the best. Thank you,

Question: Soumya - Aventis Park Institution Equities - Analyst : Thanks for the opportunity, sir. The first question is on the CapEx. Can you refer to the run rate? You said this year, is 20,000 growth. How would you kind of move in next two, three years? And also, in terms of projects, if you can give a broad split, Bina, where are how much have we spent so far? How much is remaining? And for the greenfield, when will the CapEx start ramping up? This year, our target for CapEx is around 20,000 crore. Maybe around 17,200 crore is a direct investment, around 2,700 crore equity investment through our JV.

Question: Soumya - Aventis Park Institution Equities - Analyst : Sir, also on your crude sourcing arm mentioned about the Russian crude sourcing mix change QQ. If you could just help us to do other crude sources, let's say Q3 versus Q4 of broadly, what was the mix change this fast?

Question: Soumya - Aventis Park Institution Equities - Analyst : Thank you. Thank you.

Question: Nick - CLSA - Analyst : Thanks for taking my question, sir. Sir, I have two of them. Firstly on Mozambique, the projects possibly looking like it's coming back to life. What assuming that the July timeline holes in terms of Merck starting, could you please up kind of give a sense of how things are likely to progress in terms of timeline, looking at how many trends by when they are likely to come also? I mean, do you have to find fresh contracts, or the old MOUs are still relevant? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 5:30AM, BPCL.NS - Q4 2025 Bharat Petroleum Corporation Ltd Earnings Call Valid plus very broadly has shown how much is the cost escalation gone for the project one way or the contract side?

Question: Nick - CLSA - Analyst : Okay.

Question: Nick - CLSA - Analyst : And sir, just last thing on chip and you know, I am cognizant of the fact that you do not would you do not calculate inventory losses separately, but just for understanding since GRMs are being and a premium to Singapore has also been shown time. And on the last few quarters, you got $9 this time in the current market environment. How should we I mean, are you in that ballpark even today in terms of how things have changed?