Objective: ₹ 267
CMP: ₹ 321.15
Bharat Petroleum Corporation LTD (BPCL) has reported results of Q4-fy25 better than expected with Ebitda or ₹ 7,760 million rupees (2.4 percent QOQ, PL capital estimates: ₹ 3,570 million rupees, BBGE: ₹ 5,790 crore). Adj Pat reached ₹ 4,550 million rupees (less than 2.1 percent qoq, ple: ₹ 1,410 million rupees, BBGE: ₹ 2,520 million rupees).
The company reported an exceptional article of ₹ 1,770 million rupees due to the loss of deterioration in its total BPRL property subsidiary. GRM stood at $ 9.2/BBL, while the GMM axis for our calculation reached ₹ 5.9/ltr. While GMM in gasoline/diesel has increased to ₹ 12.3/9.7/lTR in Q1-FY26-TD, Singapore’s average GRM continues to be weak at $ 3/BBL, and with the strong decrease in crude oil prices, we expand the report inventory.
The company expects to persist in ₹ 170/Cyl. Therefore, we build in GRM or $ 7.6/BBL (Factorization in a better confinement of the Bina Refinery) in fiscal year 26/27 and Marketing Margin or ₹ 4.8/4.1/LT for fiscal year 26/27.
The action is currently quoted at 1.5/1.4xo Fy26/27 p/bv. We maintain the reduction rating of a TP or a TP or ₹ 267 (with the previous target price of ₹ 261) in 1.2x Fy27 P/BV.
Posted on May 5, 2025
