Bharat Petroleum Corporation vs Infy Q1 FY26

BPCL reported Q1 FY26 standalone PAT of INR 6,124 crore and consolidated PAT of INR 6,839 crore, with revenue from operations at INR 1,229,578 crore. Refinery GRM fell sharply to $4.88/bbl from $7.86/bbl YoY, driven by lower Russian crude discounts (~$1.5/bbl) and inventory buildup. Marketing margins remained strong due to stable retail fuel prices amid lower crude, while LPG under-recovery averaged INR 150/cylinder. The government announced INR 30,000 crore LPG compensation, with BPCL expecting INR 7,500-8,000 crore. Management guided FY26 capex of INR 20,000 crore, rising to INR 35,000 crore by FY28. Key risk: potential auto fuel price cuts if crude stays below $70/bbl, compressing marketing margins.

Guidance read

FY26 capex guidance of INR 20,000 crore: Management reiterated capex of INR 20,000 crore for FY26, with INR 2,382 crore spent in Q1. Retail outlet network target of 25,000 by FY26 end: BPCL aims to expand its retail outlet network to 25,000 by the end of the current financial year. FY27 capex expected at INR 22,000-25,000 crore: Management guided FY27 capex in the range of INR 22,000-25,000 crore based on current approved projects. Russian crude share to remain 30-35%: Management expects Russian crude procurement to stay around 30-35% as long as no new sanctions are imposed.

Risk read

Key risks include Potential auto fuel price cuts — If crude prices remain below $70/bbl, there is risk of government-mandated retail price cuts, compressing marketing margins.; Mozambique project delays — The Mozambique LNG project continues to face delays; management expects positive news this quarter but no firm timeline.; Competition in diesel segment — Private players are offering discounts in the direct diesel segment, impacting BPCL's market share (29.59% in Q1).; LPG compensation uncertainty — Details of the INR 30,000 crore LPG compensation (tranche period, accounting treatment) are still awaited from the ministry..

Promise ledger

Of 2 tracked promises, management 0 met, 0 close, 2 missed.

IN

Infy

Q1 FY26 · Diversified

Infosys delivered a strong Q1 FY26 with constant currency revenue growth of 3.8% YoY and 2.6% QoQ, driven by broad-based growth across industries and geographies. Large deal TCV was robust at $3.8 billion with 55% net new, including a mega deal with a global bank. Operating margin came in at 20.8%, down 30bps YoY due to compensation hikes and sales investments, partly offset by Project Maximus benefits. Management revised FY26 revenue guidance to 1%-3% CC (from 0%-3%), citing persistent macro uncertainty and no improvement in client discretionary spending. AI adoption is accelerating, with 300 agents built and strong pipeline in enterprise AI. Key risk: delayed decision-making and tariff uncertainty could further pressure H2 growth.

Guidance read

FY26 revenue growth guidance revised to 1%-3% CC: Revised from 0%-3% to 1%-3% in constant currency, reflecting strong Q1 but persistent macro uncertainty. Operating margin guidance maintained at 20%-22%: Margin guidance unchanged; aspiration to improve margin YoY despite headwinds from compensation and deal ramp-ups. FY26 free cash flow expected above 100% of net profit: Continued strong cash generation; 5th consecutive quarter of FCF >100% of net profit.

Risk read

Key risks include Macro uncertainty and tariff impact — Persistent tariff and geopolitical uncertainty are delaying client discretionary spending and elongating decision cycles.; H2 seasonality and demand weakness — Management expects H1 to be stronger than H2 due to normal seasonality, implying potential growth deceleration.; AI-driven productivity may cap pricing — Productivity gains from AI are shared with clients, potentially limiting margin expansion and revenue per employee.; Vendor consolidation may intensify competition — As clients consolidate vendors, competition with larger peers could pressure margins and win rates..

Promise ledger

Of 1 tracked promise, management 0 met, 0 close, 1 missed.