Samriddhi cost savings target of ₹1,000-1,500 crore
Management targets ₹1,000-1,500 crore annual EBITDA uplift through operational efficiencies, with ₹250 crore already locked in Q1.
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Visakhapatnam ROUP commissioning in Q2 FY26
Residue upgradation project expected to commission within weeks, boosting distillate yields to ~83% and improving GRMs from H2 FY26.
Debt/equity target below 1.2x
Management aims to maintain debt/equity below 1.2x, with focus on deleveraging; current level at 1.01x.
Chhara terminal capacity utilization 10-15% in FY26, 35-40% in FY27
LNG terminal at Chhara to operate at low utilization in FY26 due to breakwater completion, ramping up in FY27.
HRL Rajasthan Refinery Full Ramp-up by Q3 FY27
CDU currently at 60% utilization; targeting 85-90% by October and full capacity by Q4 FY27 with all units including SRU and PSFU operational.
Annual Capex to be Lower than Rs 9,700 Crore
Q1 spend was Rs 1,700 crore; given current environment and cash conservation priorities, full-year capex will be below the agreed Rs 9,700 crore target with discretionary spends deferred.
Third-party Dependence to Drop to 10% by FY28
With HRL at full capacity and HRL's Vizak unit stabilized, HPCL expects to source only ~10% of MS externally vs current 24%, with ~56% from own refineries and 40% from JVs.
Samriti 2.0 Cost Optimization Target of Rs 1,500 Crore Run-rate
Despite Q1 disruptions, management reinitiated the cost program with 100+ ideas; targeting Rs 1,500 crore annualized savings through cost takeouts, energy efficiency (Rs 2,000+ crore annual spend), and intermediate stream optimization.
Debt-equity target revised to sub-1.0 by FY26 end
Management revised the debt-equity target from 1.1 to below 1.0 by March 2026, aided by strong cash generation and LPG compensation.
Visakh refinery commissioning in 3-4 weeks
The Visakh refinery is expected to start crude feed by November 24, 2025, with full stabilization in Q4 FY26, adding ₹2,500-3,000 crore EBITDA annually.
Barmer refinery crude feed in next couple of months
The Barmer refinery is 89% complete; crude feed is expected in the next couple of months, with full ramp-up within 3 months thereafter.
Samidhi cost savings target of ₹1,000 crore for FY26
The cost takeout program achieved ₹823 crore in H1 FY26; management is confident of exceeding the ₹1,000 crore target and launching Samidhi 2.0 from April 2026.
Visakh refinery performance guarantee test by March 2026
Targeting 100% utilization for 3 consecutive days in March to pass licensor performance guarantee test.
Rajasthan refinery first product in February 2026, full capacity by Q1 FY27
First branch of products expected in February, with full refinery ramp-up by Q1 FY27; petchem may take an additional quarter.
Net debt-to-equity to end FY26 below 1.15x
Despite Q4 cyclical increase, full-year leverage will be lower than the earlier guidance of 1.15-1.2x.
Samriddhi 2.0 efficiency program with external support
Next phase of cost optimization targeting harder-to-achieve initiatives, with guidance to be provided in next analyst call.
Barmer refinery COD in Q1 FY27
Expect to achieve COD shortly, operate at 60% capacity in June, full ramp-up from Q2.
RFCC unit full ramp-up in 1-2 months
After catalyst clogging, unit is back on stream; full benefits expected from end of Q1 or Q2.
Q1 FY27 expected to be loss-making
Management guided that Q1 will be very tough with losses due to high crude and low product prices.
Capex flexibility in FY27
Projected capex slightly lower than FY26; discretionary spends deferred; committed capex continues.