Oil marketing companies (OMCs) were in focus on Tuesday, August 19, after global brokerage Morgan Stanley highlighted their robust first-quarter performance and sustained benefits from Russian crude sourcing.
According to the brokerage, Bharat Petroleum Corporation Ltd (BPCL), Hindustan Petroleum Corporation Ltd (HPCL), and Indian Oil Corporation Ltd (IOCL) collectively delivered $2.8 billion in profits, $2.0 billion in operating cash flows, and de-leveraged their balance sheets by $4.4 billion in Q1FY26. The companies reported an average return on equity (ROE) of 18%.
MS noted that Russian crude sourcing continues to provide significant cost advantages, with discounts available in the range of $2–3 per barrel. BPCL expects 35% of its crude sourcing this fiscal to come from Russia, while HPCL stood at 13%.
In terms of profitability, BPCL recorded EBITDA per barrel of $10–15, around 2x the long-term average, with HPCL also reporting improved costs. IOCL, however, continued to underperform peers on margin performance.
At 10:35 am, shares of HPCL rose 1.8% to ₹394.05, BPCL gained 1.3% to ₹317.95, while IOCL edged up 0.5% to ₹140.97.
