Hindustan Petroleum has achieved a significant technological milestone with the successful commissioning of its Residue Upgradation Facility (RUF) at the Vizag Refinery. The facility represents a major advancement in refining technology, featuring the world's first LC-Max unit designed to transform bottom oils into high-value products with exceptional efficiency. The new unit is projected to significantly improve Gross Refining Margins (GRMs) with substantial financial impact on the company's performance.

Facility Specifications and Technology

The newly commissioned RUF operates with substantial capacity and incorporates cutting-edge technology for optimal performance:

The advanced LC-Max technology enables the facility to achieve approximately 93.00% conversion of bottom oils into high-value products, representing a significant improvement in operational efficiency and product optimization.

Financial Impact and Projections

The commissioning of the LC-Max unit is expected to deliver substantial financial benefits for Hindustan Petroleum. The company has provided specific guidance on the financial impact of GRM improvements at the Vizag Refinery:

Every $1 per barrel increase in GRM of Vizag Refinery is projected to increase EBITDA by 3.00% and PAT by 5.00%, demonstrating the substantial leverage the facility provides to overall financial performance.

Operational Impact and Strategic Benefits

The start-up of the RUF delivers multiple operational advantages that strengthen Hindustan Petroleum's refining capabilities. The facility enhances distillate yield by up to 10.00% from recent pre-capacity expansion levels, directly contributing to improved product output and operational efficiency. With the RUF commissioning, the Nelson Complexity Index of Vizag Refinery has improved to 11.60, positioning it among India's most advanced deep-conversion refineries.

The Gross Refining Margins of the Vizag Refinery are positioned for substantial increases due to several key factors including superior product slate composition, enhanced flexibility to process heavier or opportunity crudes, higher value realization per barrel, and improved margin capture capabilities.

Technology Integration and Market Position

The RUF incorporates the advanced LC-Max Digital suite, which enables efficient and optimized operation of the complex unit. This digital integration supports yield control mechanisms for improved operational precision, margin management for sustained profitability capabilities, enhanced processing performance, and maximized feedstock conversion. The increased middle-distillate output addresses multiple strategic objectives for Hindustan Petroleum by reducing the gap between HSD marketing and refining volumes while lowering dependence on external sourcing and strengthening the overall supply chain infrastructure.

Hindustan petroleum Corporation Limited (HPCL) has received an Environmental, Social and Governance (ESG) rating of 65 in the Aspiring Category from NSE Sustainability Ratings and Analytics Limited for fiscal year 2023-2024.

ESG Rating Details

The oil refining major informed stock exchanges about this development on December 10, 2025, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Independent Assessment

HPCL emphasized that the company did not engage NSE Sustainability Ratings and Analytics Limited for obtaining this ESG rating. The rating agency independently prepared the ESG assessment report based on data available in the public domain.

The ESG rating has been published by NSE Sustainability Ratings and Analytics Limited and is accessible through their official platform for stakeholder reference.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 read with Schedule III and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. HPCL communicated this information to both BSE Limited and National Stock Exchange of India Limited as part of its regulatory obligations.

This ESG rating reflects the company's performance across environmental, social, and governance parameters for the fiscal year 2023-2024, providing stakeholders with insights into HPCL's sustainability practices and corporate governance standards.