This article first appeared on GuruFocus .
Release Date: July 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Bharat Petroleum Corp Ltd ( BOM:500547 ) demonstrated operational resilience and supply chain agility amidst geopolitical tensions, ensuring uninterrupted fuel supplies.
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The company increased its spot crude purchases to 69% in Q1 FY27, up from 44% the previous year, optimizing crude sourcing.
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Bharat Petroleum Corp Ltd ( BOM:500547 ) expanded its retail network to 25,485 outlets and its CNG network to 2,700 activations, reinforcing its market presence.
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The company launched Bharat Gas Light Gip in Mumbai, a lightweight 10 kg composite cylinder, enhancing customer convenience and safety.
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Bharat Petroleum Corp Ltd ( BOM:500547 ) completed the acquisition of the remaining stake in IBV Brazil, strengthening its upstream portfolio.
Negative Points
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The company faced adverse marketing margins due to elevated international product prices, impacting financial performance.
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Bharat Petroleum Corp Ltd ( BOM:500547 ) reported a standalone loss of 3,962 crore for the quarter.
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The geopolitical situation led to disruptions in crude sourcing, impacting supply chain and procurement processes.
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The company experienced a significant degrowth in LPG domestic sales, attributed to supply shortages and control mechanisms.
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Bharat Petroleum Corp Ltd ( BOM:500547 ) faced challenges with crude premiums and freight costs, affecting overall cost structure.
Q & A Highlights
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Q: Can you share the net Gross Refining Margin (GRM) after Special Additional Duty (SAD)? A: The net GRM after SAD is approximately $17 per barrel. (Respondent: Director of Finance)
Q: How did the marketing division see a positive inventory impact despite crude prices dropping by the end of the quarter? A: The marketing trading gains are calculated based on the fortnightly Retail Selling Price (RSP) movement and inventory levels. The majority of the price increase occurred in the first two and a half months, resulting in an inventory gain of around 3,000 crores. (Respondent: Director of Finance)
Q: How many days of crude have you tied up for the upcoming months? A: As of June 26, we had about 35 days of crude inventory. We have secured contracts for July and August, and are in the process of finalizing September's requirements. (Respondent: Director of Finance)
Q: What is the current status of the overseas E&P projects in Mozambique and Brazil? A: In Mozambique, the project is 42% complete, with first gas expected in FY 28-29. In Brazil, we have acquired a 100% stake in a 40% project interest, with first oil expected in FY 30-31. (Respondent: Director of Finance)
Q: What is the impact of the geopolitical situation on crude sourcing and costs? A: The differential between the benchmark and landing costs increased to $13-$15 due to higher freight, insurance, and supplier premiums. Pre-war, this differential was around $4-$5. (Respondent: Director of Finance)
Q: How is the availability of Russian crude and what are the current discounts? A: We have secured Russian crude until August. September offers are pending, but recent developments suggest no discounts are currently available. (Respondent: Director of Finance)
Q: What are the LPG compensation and marketing under-recoveries? A: The cumulative LPG compensation buffer is 15,804 crore as of June 30. We expect government support, but the timing is uncertain. Marketing under-recoveries are not calculated separately due to high crack spreads. (Respondent: Director of Finance)
Q: What is the outlook for LPG and other fuel sales in the upcoming quarter? A: We expect LPG sales to remain flat or slightly decline due to supply constraints and increased PNG connections. Petrol and diesel sales are expected to grow by 2-3%, depending on price movements. (Respondent: Director of Finance)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
