Thank you, Michelle. A very good morning, everyone.

It's my pleasure to welcome all the participants on this call, as well as the BPCL senior management, for the fourth quarter FY26 BPCL's results conference call. With us we have Mr.

V. R.

K. Gupta, Director (Finance); Mr.

Pankaj Kumar, ED Corporate Finance; Mr. Ashish Goyal, CGM Corporate Treasury; Ms.

Anusuya [Vatsyayan?] , DGM Finance; Mr.

Balagirish, Senior Manager Finance. I request Mr.

Gupta to deliver his opening remarks.

Before we join the call with Gupta sir, let me just briefly start with the statement. Thank you, Mr.

Varatharajan. Good morning.

On behalf of the BPCL team, I welcome you all to the Q4 concall. Before we begin, I would like to mention that some of the statements that we would be making in today's call are based on our assessment of the matter and we believe that these statements are reasonable.

However, their nature involves a number of risks and uncertainties that may lead to different results. Since this is a quarterly result review, please restrict your questions to the Q4 results.

I now request our Director (Finance), Mr. V.

R. K.

Gupta, who is leading the BPCL team for this call, to make his opening remarks. Thank you, and over to you, sir.

Good morning, everyone, and thank you for joining the call today. I hope you have had an opportunity to review our results and earnings release uploaded on the exchanges.

As you are all aware, we are meeting in turbulent times amid ongoing tensions in West Asia, driving both global and domestic economies through an uncertain phase. There has been major disruption in the global energy supply chains, with impacts seen across all sectors and geographical segments.

Crude and product prices, which remained broadly range-bound for much of FY 2025-26, witnessed heightened volatility towards the end of the year and disruptions to flows through the Strait of Hormuz. Forex fluctuations and geopolitical developments continue to remain the key drivers for energy markets.

Against this backdrop, we have continued to demonstrate operational resilience across our refining, marketing, and infrastructure businesses, while remaining firmly committed to supporting India's energy security objectives and ensuring uninterrupted fuel availability across the country. Although we witnessed short-term spikes in demand due to panic reactions, resulting in initial disturbances in market supply, we have been managing the situation to ensure sufficient supply security in close coordination with OMCs and under the able guidance of MOP&NG.

I'm happy to share with you that despite mounting challenges amidst the ongoing crisis, we have ensured smooth supply of all essential petroleum products—MS, HSD, and LPG—across the country. While our financials for FY 2025-26 have been strong, since the large impact of the war is not fully realized in Q4 due to timing differences, Q1 2026-27 is going to be a challenging period.

Let me now take you through the operational and financial highlights for the quarter and the year. Refinery: even during the recent war situation, we continue to maintain crude supply security through flexibility in crude sourcing by diversifying procurement strategy and the ability to process multiple crude grades across geographies.

We have increased our Russian crude procurement from 25% in Q3 to 31% in Q4, and it continues to increase, fill up our supply gaps in the light of the current situation. Further, we have diversified to eight new grades of crude during the year, covering four geographical regions.

I would also like to assure stakeholders that crude supplies have been secured through July 2026. Our refining business delivered a resilient operational performance during the quarter, supported by optimized crude sourcing, robust refinery operations, and disciplined execution.

During the year, our refineries operated at 116% of utilization, with refinery throughput of 41.15 MMT, which is highest ever, and distillate yield of 84.54%, reflecting the strength and complexity of our refining portfolio. Our gross refining margin for the year 2025-26 stood at $11.74 per barrel.

On the marketing side, our business continued to maintain healthy momentum, driven by steady demand growth across retail and commercial fuels. During the year, our overall domestic sales volume stood at 54.18 million metric tonnes, at an overall growth of 3.5%, with petrol sales growing by 5.7%, and diesel by 1%, and ATF is 11.4%.

BPCL continued to maintain leadership in throughput per retail outlet among PSU peers, with average throughput of 143 KL per month in Q4 2025-26, strengthened by strategic marketing actions, strong highway presence, and continued focus on customer experience and retail productivity. In the retail segment, we continue to expand our customer and infrastructure footprint during the year.

BPCL commissioned 1,691 new retail outlets during this year, taking the overall retail network to 25,323 outlets. Our EV charging network expanded to 6,823 stations, while the CNG network increased to 2,650 stations, achieving network leadership in CNG among PSUs.

Digital customer engagement initiatives, including the SBI-BPCL Octane Card and UFill, continued to witness strong customer adoption and engagement. Further, in our allied retail businesses like Apna Ghar, Be-Café, wayside amenities, In&Out stores, we continue to strengthen non-fuel offerings through the expansion of convenience and customer-focused formats across our network.

The latest April retail market share, we have achieved MS at 30.02% and HSD 29.61% in retail segment. On the LPG segment, as of March 2026, the cumulative negative buffer towards LPG compensation stood at ₹12,319 crore.

This is after accounting for the five installments received from Government of India from November 2025 against the announced compensation of ₹7,594 crore. Our gas business continued to deliver strong growth momentum during the year.

The annual sales volume stood at 2.29 MMT, registering a growth of 26.5% year-on-year. On the CNG segment in our GAs recorded sales volume of 248 TMT, reflecting a robust growth of 62.1%.

The business also achieved 100% utilization of the regasification capacity booking with Petronet LNG, a first since inception of LNG imports by BPCL. Let me now update you on the progress of our strategic growth projects and long-term value creation initiatives.

The Dearomatized Solvent project at Mumbai Refinery, with an annual capacity of 200 TMT, was commissioned during Q4 FY 2025-26. This first-of-its-kind Make in India initiative is an import substitution and strengthens our presence in the niche specialty products segment.

The Krishnapatnam-Hyderabad pipeline, a 425-kilometer, 2.6 MMTPA multiproduct pipeline was commissioned in Q4 FY 2025-26. The project strengthens efficiency and provides critical evacuation infrastructure for the upcoming project, while reflecting on our broader focus on logistics infrastructure.

Further, during the year, we commissioned two retail depots, two LPG bottling plants, three aviation fueling stations, and two gas pipelines to strengthen supply and distribution capabilities. In addition, projects such as the Irugur-Devangonthi and Mumbai-Rasayani pipelines are under implementation to further strengthen supply chain resilience and network connectivity.

We successfully commissioned 1G and 2G ethanol plant of 100 KL per day capacity each at Bargarh in Odisha in October 2025 and March '26 respectively. The project is aligned with the National Policy on Biofuels, aimed at enhancing energy security, reducing crude oil imports, and promoting cleaner and greener fuels.

As part of our Project Aspire growth agenda, I would like to provide a brief update on our key strategic projects. The Bina petrochemical and refinery expansion project has achieved 23% progress against a planned schedule of 32%, with ₹4,700 crore incurred and ₹25,400 crore already committed.

The schedule variance is primarily due to geopolitical developments and associated supply chain challenges, affecting the manufacturing and delivery. However, critical long-lead items remain on track, and all major packages have been awarded by February 2026.

Additionally, recent Middle East conflicts have impacted supply, pricing, and execution timelines. We are actively monitoring the situation and implementing mitigation measures to minimize the impact on overall timelines.

For the Andhra Pradesh refinery cum petrochemical project, which is proposed to be a 9 million metric tonne per annum refinery and petrochemical complex, key preparatory activities are progressing as planned. Environmental and technical studies have been completed, while detailed engineering and financial appraisal activities are currently underway.

This project is supported by strong incentive from the State Government of Andhra Pradesh. Other major projects including the PRFCC project at Mumbai Refinery, the polypropylene project at Kochi, and the POL and LOBS installation at Rasayani are also progressing steadily, in line with the planned commissioning timelines.

On the upstream segment, I'm happy to share the following updates. On the Mozambique block, on 7th November 2025, the operator informed Government of Mozambique that force majeure has been resolved.

The work has resumed in full swing, and the first LNG cargo is expected by mid-2028. Presently, around 6,000 manpower is in the site, and around 42% project schedules have been completed.

Further, on the BM-SEAL-11 Brazil project, the FPSO tender had been finalized and to be awarded shortly. Work has commenced for development, and first gas is expected by 2031 and '32.

The FID had been approved by the operator. Also, through our SPV, Urja Bharat Private Limited, the first oil discovery in the unconventional Shilaif play has been made in Action 76 well in the UAE.

BPRL has also witnessed the oil discovery during testing of the exploration well Action 79-02S in the onshore Block 1. Such positive developments are very encouraging and certainly a significant achievement for BPRL as an international operator.

On the green energy front, we are advancing the renewable push with 251 megawatt installed capacity, and additional wind and solar projects under execution for 100 megawatt. The overall capital outlay for the projects under renewables is ₹1,570 crore.

On an overall basis, we incurred a capex of ₹20,400 crore. The capex target for FY 2026-27 is ₹25,000 crore.

Our capital allocation approach remains under prudent and disciplined manner, with continued focus on project execution, balance sheet strength, and sustainable returns. Let me now guide through the financial highlights for the quarter.

The revenue from operations stood at ₹1,34,896 crore, the standalone profit after tax at ₹3,191 crore, and the consolidated profit after tax was ₹5,625 crore. Our standalone net worth as on 31st March 2026 is ₹95,233 crore.

The earning per share for the quarter is at ₹7.47 per share. As of March '26, the debt-equity at standalone gross borrowings level is 0.11, 0.11.

Overall standalone gross borrowings is ₹10,480 crore, and we have current investments including the oil bonds of about ₹18,465 crore, placing us at a net surplus on standalone basis. At group level, debt-equity is 0.43, with gross borrowings of ₹43,482 crore.

Debt-equity ratio net of current investments at group level is 0.25. Given prevailing uncertainties in global energy market, we will refrain from providing forward-looking guidance at this stage.

With this, I conclude my opening remarks and would now be happy to take your questions. Thank you.

Thank you for the opportunity, sir. Congratulations on a great set of numbers.

A couple of questions around the performance. One, if we look at the derived refinery margin for the fourth quarter, is it fair to say that there has been some inventory positive impact in the refining numbers for this quarter given the timing difference between stocks used and the way prices have behaved?

Directionally at least, can we assume that there has been a significant inventory impact in this quarter?

Generally, we don't calculate refinery inventory gain/losses because our average inventory is less than the purchase cycle. When huge price fluctuation movements are happening, that particular point of period definitely there will be some gain.

We can't exactly give any guidance what would be the inventory gains. Definitely inventory gains is helping the refining margins in Q4.

Sure, sir. That's useful, sir.

The second question was with respect to the supply mix. You already alluded to the rising share of Russian crude in our overall supply, and that has helped us offset the shortage from the Gulf.

Can we get a sense, a little bit more granular sense of what kind of supply sources are now there in terms of crude that we have tied up till July, as you mentioned, other than Russia? What are the other destinations?

We have WTI is one destination. Venezuelan crude we have tried.

Even Middle Eastern spot grades also available, like Murban and other things, market mein these are all available. Last year at least four new grades we have tested: Venezuela, Brazil, and Angola.

In spot, many of the grades are available. Major source is coming from Russia only.

Even till July '26 when you see the numbers, the major source on spot is Russia. Term, beginning of the year mein we have allocated for term around 55% of our requirement.

We are not getting the full term, maybe around 45% to 46% of our term requirements we are getting, even there are constraints in the Strait of Hormuz. Around 45% to 46% of term we are getting.

Around 10% shortage, that 10% shortage we are moving to spot. Otherwise, in beginning of the year we have planned for 45% for spot.

Now it

is

happening at around 55% spot.

That's very useful, sir. If I can ask a small follow-up.

We know that the crude assay or the API and other nature of WTI and Venezuela is very different. Assuming that we have to rely more on those sources, will it have a impact on our distillate yield going forward if the Gulf crudes actually reduce even more?

No, definitely distillate yield will change, but at the same time it will have a commercial benefit also. Net-net we see what is the CAV, value addition at refinery, and what is our product demand.

Accordingly, we balance it out the product based on the product demand, what is that crude requirement and what is the profitability we can optimize. We cannot take Venezuelan crude directly, with blend only we can take.

Accordingly, we are planning small cargo sizes we can take and blended with other grades, and we take it to the refinery.

Right, sir. One last question.

In terms of the capex, you already mentioned the overall number of ₹25,000 crore. Can we get a little bit more break-up in terms of segments or key projects that are there in FY27?

You see our major projects are mainly Bina petrochemical project, okay, that is for Bina we are allocating for '26-'27, refinery plus petrochemicals we have allocated around ₹11,000 crore, out of which two major projects, three major projects: polypropylene at Kochi, PRFCC at Mumbai, and Bina. For these three projects and regular capex for refinery around ₹11,000 crore.

The marketing initiatives, our new retail outlet expansion and infrastructure expansion, and whatever supply logistics side expansion, we have allocated around ₹10,000 crore. BPRL we have planned around ₹2,250 crore of equity infusion for the ongoing projects.

The CGD network, as a continuous expansion of our CGD network, we have allocated around ₹1,700 crore. Overall put together, it is a ₹25,000 crore capital allocation for '26-'27.

That is very useful, sir. Thank you for your time.

I'll come back if I have more questions. All the best.

Thank you for the opportunity. Two questions.

The first one is on the impairment that you booked this quarter. Now, in your opening comments, you have mentioned that the construction activity is underway and you expect first LNG from Mozambique in 2028 mid of that.

Why did you take an impairment even after the construction restarted in Mozambique? That's question one.

The second one is on the retail fuel operations. Do you see the current environment as conducive for yourself to gain market share given that some of the private players which were looking to expand, maybe now they rethink due to the uncertainty in the marketing side?

Yep, thanks. Those are my two questions.

Come to the first question, the impairment in our upstream venture is mainly for Brazil venture, not for Mozambique. Mozambique there is no incremental impairment during this year because the work is going on as per the schedules and 42% is a good progress has happened.

It is not warranted at this point of time any impairment for Mozambique project. The major impairment is for the Brazil project.

In fact, actually it took three years to finalize the FPSO tender. That was the reason the project completion schedules have been further extended to 2031-32.

The oil will come in '31 and gas will come end of '31, '31-'32 financial year. Initially, we thought Brazil the gas and oil will come around '28-'29 financial year.

Since the project is being delayed by around 1.5 or 2 years, when you discount the future estimated cash flows to the current value, it is warranted for impairment, assuming all other parameters are at the same assumption. Since project delay is happening in Brazil, that was the reason there is a need for impairment.

Second is retail segment, based on the current context whether increasing the market share is good or not, generally we don't see on a temporary basis increase of the market share. Because this some point of time whether retail customers they may come here and other things, but otherwise as a long-term strategy, always our endeavor is to improve our market share.

These are all temporary time period, we have to face the challenges. Otherwise, our market share initiatives are only for long-term.

Sometimes, yes, based on the current market conditions, market share can go up. Our endeavor to sustain the market share even in a long-term basis.

Right. Thanks.

Just one follow-up. As far as the carrying value of BPRL goes, now it's around ₹4,100 crore.

Is there any broad breakup that you can share of the split of this carrying value of ₹4,100 crore across the key assets?

That we'll share it separately. Main, that is what I'm saying, the impairment is coming during this year mainly for the Brazil block.

Entire amount, whatever impairment ₹4,300 is only for the Brazil block. There is no incremental impairment during this year.

Okay. Thank you so much and all the best.

Thank you for the call, sir. My first question was a bit on marketing again.

I think you have seen almost pretty much a year of relative market share loss compared to the other peers. Anything that you kind of can suggest which will help you kind of reverse that?

Obviously right now it's less conducive, but over a more medium term, what is BPCL doing around that? No,

our objective is there should not be any disruption in the supply side. That is the first objective.

We have to continue supply to the market and no customer should suffer on account of non-availability of the fuel. In terms of market expansion and market share expansion, it's a continuous exercise.

Our endeavor is to take at least 32% in retail segment market share over a period of time. That was the reason many initiatives we have taken at the retail field.

One is through expansion, network expansion is one strategy we have adopted, and bringing more and more initiatives to give more convenience to the customers. These two initiatives, our long-term strategy to take up our market share to around at least in retail 32% in a couple of years.

Got it, sir. I think the second question was more related to the upstream side.

In terms of total investments in upstream, your share across all the portfolios, and now that you have got some good discoveries as well, over the next five years, how is BPCL thinking in terms of capital allocation to upstream as a percentage of total capex?

Yeah. We have three major projects in our hand, already discovered where exploration stage is completed.

Now it is either the development stage has started and some work has completed. Let me explain one by one these projects.

One is the Mozambique, that is our flagship project, which is having a reserve size of around 70 TCF reserve size. The first phase the development is happening only for 13 TCF.

Out of which our stake is 10%. For that already 42% is completed.

There is a huge potential of future expansions. Once this particular phase is completed, whatever cash flows comes, the first phase is mostly it is under project finance.

There is no equity commitment from our share for Mozambique. Whatever we have committed and invested, that is okay.

Future any investments are from the mainly for the project financing. There is no future capital commitment from BPCL side through equity.

Subsequent phases, definitely whatever cash flow comes from the first phase, first train, automatically that cash flow will reinvested in the subsequent phases. That is broadly about Mozambique.

Come to the Brazil. Brazil, the total project capex size is around $6.4 billion.

Our share out is around 40%, mean $2.8 billion. Maybe future our capex contribution will be around $1.2 billion we have to invest over a period of 3 to 4 years.

This is only in the field, only one development. There is a potential of another development in the same field.

Still the exploration and drilling had to happen. We are at least the initial estimations we are feeling the similar size of reserves are available in another field also.

There is a good potential. At this point of time, we cannot comment on that potential side.

Whatever existing field in Brazil, the daily production of crude we are expecting around 88,000 barrel per day, out of which 40% is through our joint venture, IBV. This is a good equity oil.

The rights are equity oil, we can bring in India in case if we want here or we can market our crude in crude rights wherever we want based on the commercial position at that point of time. That is the Brazil.

The third one is Lower Zakum through Lower Zakum and Upper Zakum blocks in UAE. Already producing block, it is giving good volume because India consortium is having around 10% of the stake in that.

Another discovery we have just now we have completed during FY 2025-26. Now it will go for the development plan and the activities will come there.

The initial estimations, we are hopeful we have a good amount of reserves there and good amount of extractable reserves. Once that plan is ready, then we will communicate to you.

Beyond that, we have certain producing blocks in India, but very small in size. Our plan is at least very long-term strategy, we are looking at it at least 6.5 to 7 million barrel, 6.5 to 7 million metric tonne of crude capacity we should have in our group balance sheet.

That is our short-term target. With these projects, we are hopeful we will reach that level.

Very clear, sir. Thank you.

Hi. Good morning and thank you for the opportunity.

Sir, my question is with respect to your key capex projects that you undertake. If you for our benefit summarize what is the planned capex for the three projects that you are currently running, which is in Mumbai, Kochi, and Bina refinery?

Is there any relook at that amount given the sharp depreciation in INR? That is my first question.

Related to that is given that this year we're facing fair amount of challenge in terms of our operating cash flow, is there any relook at any of the capex programs? Continuing on that, how do we see our debt to equity ratio changing with the perspective on current operating cash flows that we are going to generate given the scenario we are in and the capex we have in front of us?

That would be my first question.

Let me explain our three major flagship projects. One is Bina petrochemical complex, the total project cost is around ₹49,800 crore, out of which only the foreign component, foreign component will be around ₹6,500 crore.

Even if there is any huge foreign fluctuations, the impact on the foreign component is limited. Maybe even a 10% depreciation, the initial estimation of ₹6,500 crore may be ₹6,000 crore, ₹7,000 crore, on account of foreign exchange fluctuation on that component it happens.

All other components in the project cost is INR-denominated. Around ₹25,000 crore tenders have been awarded on fixed-price contract, so that there won't be any price impact on that whatever already awarded projects.

Maybe around 20% to 25% of project work we are yet to award. There may be a small impact, but we are hopeful whatever approved project cost within plus or minus 10% we have approved, we are hopeful within that limits we will be in a position to complete.

Let us see in next one or two years how the things will happen, what will be the inflation and other things. We have to wait and see.

At this point of time, if you ask, whatever approved number within plus or minus 10% we will be in a position to complete the project for Bina. Come to polypropylene at Kochi Refinery, almost 85%, 90% of the projects have been awarded.

There is a we have initially approved at ₹5,000 crore plus or minus 10%. Based on the current estimation, we'll be in a position to complete the project at that level only, there won't be any price escalations.

The third project is PRFCC at Mumbai Refinery. Last year only we have approved.

The work has just started, the licenser selection and FEED is going on. At this point of time, we are not foreseeing any major cost escalation at this point of time.

Maybe once we reach to the next year at least 30%, 40% progress if you see, then we will come to know whether is there any price escalation indications or not there. These three are our major projects in India.

All other capex allocations, these are all short-term projects, maybe one one year or two years these projects can be completed, either pipeline or infrastructure depots and other things. We don't foresee any major price escalations.

Only only even the steel and material prices goes up, the component is small. We are hopeful as per the original estimated numbers with a plus or minus 10% we will be in a position to complete.

Other extreme upstream side, whatever projects already we have explained, Brazil the revised cost we have approved at our board level, subject to the government approvals. Mozambique also we have approved at board level, and 42% project has been completed.

We are hopeful within the approved project cost that project also can be completed. This is overall our project side, on the price impact on the project side.

Second, when it comes to when you say the balance sheet, how do we manage the cash flows and other things, we have a very strong balance balance sheet. Even March '26 if you see, even we have a capex of around ₹20,000 crore we spent last year, still we could maintain our debt-equity at 0.11 on standalone and 0.25 at consolidated after netting off our investments.

This year also we are expecting ₹25,000 crore of capex, and we may cross ₹25,000 crore, maybe ₹26,000, ₹27,000 at the end of the year if things are going smoothly. Even with this also, we are not foreseeing any big jump of debt-equity, provided once the crude prices settles.

How how things will move in the next a couple of months not sure, but but we are hoping whatever challenges today we are facing, it is only a short term. Once things will settle, once the war and blockade is removed at Strait of Hormuz, the supply side becomes normalizes, then we are hopeful by at least July, August the price stability will come and normalcy can come back.

We're not foreseeing any big stress on the balance sheet. Maybe yes, short term there may be a stress out because cash flow mismatch has happened, we have to take certain borrowings during this period.

End of the year, we are hopeful. Let us let us wait and see how the things will move.

Long-term debt-equity we are projecting by all planned capex, we are not expecting the debt-equity will go up beyond 1:1 at group level. That is our expectation.

Once the projects are completed, then definitely the new cash flows will come from the new projects. Then maybe in another couple of years, the debt-equity can come back to normal level.

Always we see debt-equity should not cross at 1:1 at peak level, and generally we we are comfortable to maintain at 0.3, 0.4 level debt-equity.

Thank you, sir, for a very detailed answer. Sir, my second question is also related to the first one.

As you pointed out, we do have a supply challenge because of disruptions in Middle East. At the same time, we also have cash flow challenges stemming from the pricing basically restrictions that we have over here.

In that backdrop, this is a more of a hypothetical question, is there any thought among OMCs to switch back to a regulated regime? At least in the regulated regime, we used to get back our under-recoveries that were there in petrol and diesel.

At this moment, while technically the products are deregulated, but at the same time there are severe under-recoveries as far as our assessments go, but there is no road map for recovery of those under-recoveries. Any thoughts on that, sir?

Let me explain. LPG is already a regulated product.

Whatever under-recoveries on LPG, definitely we are hopeful some sort of support comes from Government of India, like earlier government always supports for LPG. In terms of other products, we feel it is a short-term challenge, it's not a permanent challenge.

We have seen this situation even earlier also, even in Russia-Ukraine war also we have seen. We feel it is a short-term challenge, definitely we will come back to the normal scenario.

Wait and see. Yeah.

Hi, sir. Many congratulations on a good set of results.

I just have one question. On the marketing front, majorly on fuel availability side, we have been reading that there have been some shortages or some changes in the working capital structure for the dealers.

Just wanted to check from you as to if there are any changes that you have made or you are reporting any shortages in some highways or few far-fetched fuel pumps. Any clarity on that would help a lot, yeah.

Thank you so much.

There is no shortage of fuels. Even if you see our refinery side, the operations are continuing at 118% of refinery capacity utilization.

That means crude is available, crude is continuously coming here, our refineries are operating very well. Even in the sales also, when you see the sales last year almost 3.6% growth, it is much higher than normal expected growth of 2.5%.

Whatever market demand is there, we are continuously catering the market needs. Second, in terms of the credit, our policy still we are continuing extending the credit to the dealers.

There is no stoppage of credit to the dealers. Whatever credit policy, based on the requirements, some controls and other things, we extend the credit.

Only thing, in case if the money doesn't come back in time, if there are any defaults by the customers, then definitely there will be some restrictions on extending the credit. We give the credit, but within three days or four days, once they collect the cash, they have to pay back to the company.

If there is any defaults, then those customers we put a control.

Got it. That helps.

Thank you so much, sir. That's it from my side.

Good morning, sir. Two questions.

Firstly, there has been a press article where it has been mentioned that I think it's quoting the management saying that current Russian crude share for BPCL is around 40-45% and the discounts are also at $6 to $8 per barrel versus $12-$13 per barrel. Do you confirm this?

One is percentage, yes, definitely recent period the Russian cargo percentage has gone up. Last year Q4 it was 31%, but whereas the current period, because most of the supply on spot basis only Russian grades are available and more.

Russian product offtake is on a higher side, around 40%, 41% in the recent time we have taken. In terms of the discount and premiums, daily it changes, okay?

Last year it was in a discount scenario Russian crude, this year it is a premium scenario. It depends demand-supply situation or what are the sanctions on Russian cargos.

If there is no sanction, it's a free market; if there are sanctions, then tight market. It depends on the market trends.

I cannot say it is available at discount, and this will vary. At present it is not available at discount, at least I can say that.

Got it. Secondly, regarding your inventory position right now, how much crude stocks, LPG stocks, product stocks are there at the moment for the company?

Generally, we keep crude stocks around 25 to 27 days. Maybe sometimes one or two days higher hoga because we are preferring keeping a higher inventory levels.

Maybe 31st March '26 the crude inventory 27 days, last year it was 26. Maybe some point of time maybe one or two days extra hoga, additional cargos in case if we take it, maybe 28, 29 days.

Otherwise, we can keep this level only. We cannot keep beyond 30 days because we don't have any storage also, tankage.

Right. Product and LPG?

Product number of days, last year March '25 it is 25 days, this year March '26 it is 24 days. More or less same, similar range we keep it.

LPG?

LPG, every day it changes. If today we get one cargo, then number of days coverage will be higher.

Maybe three, four days maybe the cargo is consumed, the number of days comes. It is a challenge.

We are getting the LPG, we are catering the needs. Generally we are comfortable at this point of time to keep around 15 to 20 days coverage, but sometimes it may be lesser than 15 days coverage.

Sometimes if we get good cargos, then it will be more.

Got it. Thank you so much and all the best.

Hi, sir. Thanks for the opportunity.

Sir, firstly from what I read from the media reports, the Russian crude sanctions will expire by mid-June, it has been extended by 1 month. You said that you have booked your supplies till July and most of it will be coming from Russia.

Is there a risk of shortfall given that there is a possibility that these sanctions will not be extended?

Let me explain. Russian crude is not sanctioned anytime.

Only entities have been sanctioned. Okay?

Whereas Iran crude is sanctioned. Once crude is not sanctioned, you have a right to buy from non-sanctioned entities.

Even before the war also, we used to continue to buy Russian crude from the non-sanctioned entities. There may be supply from the non-sanctioned entities.

During the waiver period, you can buy Russian crude from any party. During lapse of the waiver period, you can buy only from the non-sanctioned entities.

Always we keep that controls. Whatever Russian crude we buy, always it is from the non-sanctioned entities, either is a cargo vessel owner or port or the supplier, those parties should be non-sanctioned entities.

Sir. Thanks.

Very clear. Sir, second question on LPG under-recovery.

From what I understand from HP and IOCL that under-recovery currently is around ₹670-₹680 per cylinder. If you look at the Saudi CP price, it has gone up to $800 per ton.

If you try to plug in this, the number which we arrive at is much lower than ₹680. What exactly changed in the calculation?

Is there a higher spot premium over the Saudi CP because the sourcing mix had also changed from say Middle East to country like US, Venezuela all? Again there'll be some higher logistics cost as well.

Yeah.

You rightly said, actually. These two are the additional components.

One is the logistics cost, definitely. Pre-war level the freight cost, Worldscale is around 50, 55 level.

Now the Worldscale has gone up to 600, 700. The peak level, this is one component freight cost is really it is increased.

The second component, when we say Saudi CP, it applies only to the term contract. If term is not available, when you go to the spot market, sometimes you have to pay premium of $300, sometimes $200.

When you take cargos from the US, definitely the freight rates will be very high because then transit period itself is to and fro will be almost 90 days. When you engage your time charter for 90 days, definitely the freight cost will be higher.

These are the two components. Two components if we add it, your actual under-recovery will be around ₹650.

Sir, have we signed any long-term LPG contract from sources other than Middle East, and what could be the benchmark for that?

Last year, industry has signed around 10% 10% of our requirement LPG for US supplies. That supplies have been started.

The benchmark will be Saudi CP plus or minus $10-$15 only. Either in a particular month maybe Saudi CP landing cost maybe minus 10 hoga or sometimes it may be plus 10 hoga, depends on the freight rates.

That was the term we have signed, 10%. Spot, now recently we have started taking spot also LPG spot also from US supplies by sending our time charter vessels there and bringing the LPG.

There definitely the landing cost will be higher as compared to term what we have signed.

Sir. Sir, thanks.

Last question, sir. On refinery side, can you give some kind of number around what is the refinery margin trend that we are looking at in April, May?

No, we cannot give any guidance April, May what would be the refining margin. Last year 2025-26 we have ended up with 11.74.

Why we cannot give this refining margin, it depends on various parameters and every parameter is changing on daily basis. Okay?

The crude price, the premium, the freight, the insurance, the product prices, there is no stable environment where we can give a little bit indication, okay, this will be look like. Generally we avoid giving any guidance on what would be the indicative GRMs.

Many parameters it influences.

Sir. Thank you so much.

I'll get back in the queue.

Thanks for the opportunity. Sir, could you please provide some sense on the delivered crude cost currently, similarly like LPG that you said?

We understand that OMCs are paying a premium over the dated Brent prices along with elevated freight and insurance cost. If possible, could you share a broad range for crude premiums currently?

It all depends on which source we take crude. Indicatively you can take today's date if you want to finalize any deal, if the Brent is at around $110, maybe our landing will be 120 or 22 maybe today's if you ask me.

Every day it changes, my landing.

Sure, sir. Thanks.

Sir, my second question is related to a point raised earlier. Given the current situation, is it fair to assume that we could see some meaningful price hike at a periodic intervals rather than complete move back to daily price revisions?

I cannot comment on this, please. We cannot comment.

Okay.

Hi, sir. A very good morning to you and your entire team.

Firstly, sir, extremely great performance for the last financial year. Now, sir, I'll just be very quick and brief about it.

Sir, I've actually seen your statement wherein you've said that you don't expect any stress on the balance sheet. Now, sir, I am absolutely perplexed on this statement which you've made, because, sir, we all are aware about what kind of under-recoveries today we are facing across all the products.

Sir, just my question to you honestly is more as an investor. It's that if today bread prices can move up by 5 and milk can also go up by the same quantum, what's actually stopping the fuel prices from moving up as you've seen?

Internationally, all the countries in the world have raised prices. The point I'm getting at, sir, is that how are we seeing the situation, or what's the inflection point where you say that this war is now well into the 85 days, it's not getting resolved, we are going to align prices to market link?

Because, sir, today we do 40 crore liters of fuel across all the three OMCs and the amount of money we are losing. It's quite perplexing as an investor angle that what are we thinking exactly?

Can you please share some thought at least, and specially after you said that you don't expect any stress on balance sheet, because obviously your balance sheet is very strong, but obviously, things are challenging. Can you please explain a bit from an investor angle, sir?

Let me clarify when I say there is no stress on the balance sheet, that is the status as on March '26. Okay?

Even there are certain under-recoveries even during the month of March, but still we could withstand. Now comes to the future, this particular environment we can absorb for a limited period.

If it continues, definitely no balance sheet can absorb. Once the cash flow mismatch happens, we can absorb a 1 month or 2 months, but subsequent if it continues, definitely there will be some solution so that our cash flow will continue.

Our cash is required for the future capex requirements, we can put our investment. If it continued for a longer period of time, definitely there will be a stress if there is no price revisions happens.

Some point of time the price revision and the burden had to be shared among all the stakeholders. That is my statement when I say.

Long term, we are hopeful the prices will come back to the normal level. That point of time, whatever our estimated cash flows, if it continues, then there won't be any stress on the balance sheet even if we continue with the large projects.

There is no review of the existing announced project, that is what I meant. Whatever we have announced, where the work is going on, we are not relooking that projects, assuming it will normalize after some point of time.

Now how long it will continue, in case if it continue for a longer period, definitely no balance sheet can take that absorption.

Got that. Sir, if I can just ask you only one thing very quickly.

Sir, what we saw yesterday, a 90 paise hike or something. Sir, why can't we go back to a mechanism, or what are the hurdles we are facing from going back to daily pricing wherein the pass-through is quite simply done on a daily basis, which was much before 2022?

Can we go back to that era again?

I cannot comment anything on the price revisions. It is the industry we discuss, and accordingly what is good for the companies, what is good for the country, accordingly decisions are taken by the industry.

Sir. Thank you, sir.

Wish you all the best and good luck for the future, sir. Thank you.

Thanks for the opportunity, sir. My first question is on the products outside of the auto fuels: bitumen, petcoke, naphtha.

If you could just help us understand on an integrated basis, have margins improved versus pre-war levels to now?

If you see the margins, marketing margins are depends on the import parity price only. There is no significant change in the marketing margins.

Whatever in the earlier formula, based on the formula only our marketing margins will continue. A product-wise refining margin, generally we don't calculate product-wise refining margins.

Overall refining margins only we calculate, that is the margin for the entire basket of products. Marketing side, everything is on import parity, all other products are on import parity only.

Whatever, for example, our marketing margins are around 4% or 5% of my sale price, similar levels we continue maintain in terms of the marketing margins.

Got it, sir. Sir, second question is on fuel and loss.

If you could just help us understand what is the approx fuel and loss across refineries, and if possible across Kochi, Bombay, if you can just split it, that's it.

For Q4 Kochi Refinery fuel and loss, 6.48 for total is 8.41 Kochi, 5.64 for Mumbai Refinery, and Bina is 9.01, total fuel and loss.

Sir, would we have a year back what this number would have been, in case we have it handy? Handy

I don't have, we'll share it. Similar range only, maybe 0.2, 0.3 variation either this side or that side.

Generally, total fuel loss will be in the similar range.

Sure, sir. Thank you.

Good afternoon. I have two questions.

My first question to Mr. Gupta is from a technical standpoint, how is Bharat Petroleum optimizing its capital structure to balance growth investments in refining, marketing, and renewable energy with debt sustainability, especially given the capital-intensive nature of oil and gas operations?

Can you shed some light on this, and on how the framework has been used for cash flow forecasting, interest rate management, and working capital to ensure liquidity while still maintaining the profits? That's the first question.

I'll ask my second question after this. Thank you.

You asked one question, it covers everything. Let me broadly give a clarification on our capital allocation.

Whatever projects we take, every project may not give the similar returns. The objective is when energy sector is growing at a 2% or 3% on annualized basis, if you want to grow as a company, then you have to diversify even within the energy sector which particular areas we have to keep the investment, or if you want to diversify beyond the energy sector, which sectors you have to allocate.

The objective is how best optimum returns we can give it to our stakeholders, that is the main objective. Even when there is a market potential for renewables, we know the renewables will give only very rate of returns are around 8% to 9% only.

At the same time, we have net zero objectives, we have to balance our portfolio keeping capital allocation for renewables. In terms of the returns point of view, it gives a lesser return, but objects point of view, we have to give more allocation for renewables.

Accordingly, we have taken a target of 2 gigawatt in the immediate period for renewables. Even it is giving a lesser return, but our endeavor is to what extent maximum we can use it within our refinery so that the returns will be much, much higher.

Instead of purchasing power from outsourced sources, better to generate the renewable power. It meets two objectives: one is net zero objective as well as giving good returns in terms of using in our refinery.

That is the reason whatever expansions we are taking for 2 gigawatt, most of the output we are using within the refinery only. Second, in terms of expansion point of view, we have seen there is a big potential advantage if we integrate the petrochemicals with our refinery intermediates, then it can give a good value addition for the refineries.

That is the reason we have taken a couple of years back petrochemical strategy, where we don't have any big presence in petrochemicals. Then accordingly we are allocating good amount of capital for the existing projects, even tomorrow upcoming projects also.

The petrochemical intensity will be very high so that it can meet the product demand in India because the growth is almost 5% to 7% growth petrochemicals, whereas in India is most of the petrochemical products are import-driven. That is the reason our major capital allocation if you see, it is happening in petrochemicals.

The third major capital allocation is happening in upstream side, where we have already completed the exploration activities, where it is moving to development level, where we are putting up more amount of money so that we have a good clarity after commissioning of the project, the cash flows will come back. Today we have a refining capacity of around 41 million metric tonne, whereas the feed, our own feed is very less as compared to our refinery requirement.

With all these projects, we are expecting at least 6 to 7 million metric tonne of exploration we should have either rights on the crude oil or we should have share of profit on the crude oil. Accordingly, we are targeting around 6 to 7 million metric tonne of crude we should have our own.

That is the reason we have allocated capital. Whatever capital allocation projects we take, definitely if it is not giving a commercial returns, generally we are very prudent in terms of the capital allocation.

If we are clear about the returns, generally we allocate any capital. If you see any of our earlier projects of IREP or any other project, it always gives good returns.

Our endeavor is timely completion of the projects without any project cost escalation, these two our objectives. In terms of the debt-equity, earlier also I said, we never take extra leverage.

We are comfortable debt-equity at 1:1 at peak level, but subsequently after commissioning the projects, the debt-equity should come back to the normalized levels, 0.4, 0.5. Then only we can take up that large project.

Most of the projects we look at it how fast the cash flows can come back, what is the net payback period. As long as if the net payback period is 5 to 6 years, then we are comfortable at least 80%, 90% of my investment can come back in 4, 5 years, then the risk levels will be lesser.

Automatically we can serve the interest and debt. These are the broader principles we take it.

Thank you. My second question to Mr.

Goyal is looking ahead, how do you see treasury operations evolving to support Bharat Petroleum's growth? What measures are being taken to strengthen liquidity management, forex risk mitigation, and funding diversification across domestic and international markets?

Thank you.

Good morning. Ashish Goyal this side.

First and foremost, if you were to actually have a look at our borrowing structure, the foreign currency loans on the balance sheet are almost very minimal. As far as the exposure in foreign currency borrowings are concerned at the moment, at this particular juncture, it is very, very less.

Of course, the treasury functions keeps on evaluating the cash flow situation on an ongoing basis, as well as the projections on the basis of the evolving market conditions. We are taking all necessary steps to arrange for the funds at the most competitive rates.

Thank you.

Hi, sir. Just a small follow-up on your answer to previous question.

You said landed crude cost versus the benchmark, the difference is currently $10 to $12 per barrel. What was this number before the war?

Before the war, I can say for WTI we used to take Brent plus 5, Brent plus 4 or 5. Peak it went up to $20 also, Brent plus 20, Brent plus 25 also certain cargos we had done, that is.

Sir. Thanks.

Thank you, everyone, for your wholehearted participation in today's concall. Looking ahead, while markets may remain volatile in the near term, BPCL's integrated operating model and resilient balance sheet position us well to navigate the evolving energy landscape.

As we celebrate our 50th foundation year, having successfully navigated multiple industry cycles, we remain confident in our long-term strategy, execution capabilities, and ability to deliver sustained value. Aligned with the Government of India's vision, Atmanirbhar Bharat, we continue to strengthen domestic energy infrastructure and invest in future-ready energy platforms.

Before I conclude, I would like to take this opportunity to thank the entire BPCL team for their unwavering commitment and collective pursuit of excellence and growth. I also extend my sincere gratitude to the Ministry of Petroleum and Natural Gas, government officials, our valued customers, vendors, and business partners for their continued support, trust, and confidence as we move forward in energizing the lives of the country.

Thank you.