Company Update : BPCL Ltd By Motilal Oswal Financial Services Ltd
Weak refining mars 1Q performance
* BPCL's reported GRM came in below our est. at ~USD4.9/bbl (our est. USD9.0/bbl).
* Refining throughput stood in line with our est. at 10.4mmt (+3% YoY).
* Marketing volumes, excluding exports, were also in line with our est. at 13.6mmt (-1% YoY).
* Marketing margin (including inv.) was 25% above our est. at INR8.3/lit.
* EBITDA was 12% below our estimate at INR96.6b, with marketing inventory loss and forex gain amounting to INR8.4b/INR0.2b in 1QFY26, respectively.
* LPG under-recovery amounted to INR20.8b (INR32.2b in 4Q).
* Resulting reported PAT stood 11% below our est. at INR61.2b.
* Other income came in 50% above our estimates.
* As of Jun’25, BPCL had a cumulative negative net buffer of INR125.2b due to the under-recovery on LPG cylinders (INR104.5b as of Mar’25).
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