HPCL earnings calls.

HPCL reported a severely impacted Q1 FY27 with PAT turning negative due to unprecedented crude price volatility (dropping $25 in two weeks), inventory write-downs exceeding Rs 5,000 crore, and significant under-recoveries of ~Rs 26,000 crore on administered prices (MS, HSD ~Rs 20,000 crore + LPG ~Rs 6,000 crore). The Vizag refinery faced technological challenges with its hydrocracker unit, while LPG losses averaged Rs 510Current Rs 510. Reported change: vs Rs 680 in June, Rs 490 in July./cylinder for the quarter. On a positive note, HRL (Rajasthan refinery) achieved Scheduled Commercial Operation on June 22, ramping to 60%Current 60%. Reported change: Ramping up from 0%. CDU utilization with full capacity expected by Q3 FY27. Management outlined a seven-pronged response strategy: balance sheet improvement, capex control (targeting below Rs 9,700 crore annual), interest cost reduction through ECB refinancing, profitability improvement via Samriti 2.0 (Rs 1,500 crore run-rate target), retail growth (Abu 2.0 at 4,900 outlets), refinery optimization, and digital initiatives. Debt rose to Rs 72,000 crore (D/E ~1.5). The near-term outlook remains uncertain given crude price volatility, but management expressed confidence in structural improvement once HRL stabilizes and inventory normalizes.