CONFIDENCE PETROLEUM INDIA LTD – Q1 FY27 CONCALL HIGHLIGHTS
#Q1FY27
Q1FY27 Financial Performance
- Revenue from operations reached ₹2,408 Cr, up 117% YoY.
- Revenue grew 98% QoQ from ₹1,216 Cr.
- EBITDA stood at ₹147 Cr, up 64% YoY.
- EBITDA increased 45% QoQ.
- PAT reached approximately ₹62.6 Cr, up over 3x YoY.
- PAT grew nearly 82% QoQ.
- Basic EPS stood at ₹1.86.
- Company delivered its highest-ever quarterly performance.
- Growth was driven primarily by strong LPG volumes.
LPG Market Opportunity
- India's LPG consumption currently stands around 35.04 MMT.
- Market expected to reach 40–42 MMT by FY30.
- India could become world's largest LPG consumer by 2030.
- OMCs account for approximately 94% of LPG sales.
- Private marketers contribute around 6%.
- CPIL holds around 33% share of private marketing.
- Company operates across the entire LPG value chain.
Integrated Business Platform
- Operates 68+ LPG bottling/blending plants.
- Network includes 478+ LPG road tankers.
- Operates 225+ LPG HCVs/LCVs.
- Dealer network exceeds 3,150.
- HORECA customer base exceeds 3,400.
- Serves 300+ industrial customers.
- Operates 315+ auto LPG stations.
- CNG network exceeds 50 stations.
- Operates 82 CNG road vehicles.
- Has 15 cylinder manufacturing plants.
- Also operates 3 high-pressure cylinder plants.
LPG Volume Growth
- Q1 growth was not purely price-driven.
- LPG volumes nearly doubled YoY.
- Higher LPG prices also boosted reported revenue.
- Management highlighted strong underlying volume growth.
- New bulk and institutional customers were added.
- Short-to-medium-term supply arrangements improve visibility.
- Industrial and HORECA customer additions remain strong.
- Management expects volumes to remain sustainable.
West Asia Disruption Benefit
- Supply disruption created opportunities for Confidence.
- Company maintained adequate LPG inventory.
- PSUs temporarily reduced commercial supply.
- Confidence stepped in with uninterrupted supplies.
- Alternate sourcing expanded across North America and Africa.
- Middle East sourcing also remained active.
- New customers entered longer-term procurement arrangements.
- Management expects these volumes to remain sustainable.
Auto LPG Expansion
- Company currently operates 315+ auto LPG stations.
- All existing stations are operational.
- Target is 500 stations eventually.
- Plan includes 75 additions in FY27.
- Another 100 stations targeted in FY28.
- New ALDS station payback is under 18 months.
- Auto LPG demand temporarily slowed due to high prices.
- Volumes are now showing recovery.
- Marketing and customer outreach are being strengthened.
CNG Expansion
- Company operates 50+ CNG stations.
- Bengaluru network is targeted toward 100 stations.
- Current CNG volume is around 3 lakh kg/day.
- Average station volume is approximately 6,000–6,200 kg/day.
- Additional stations will reduce transportation costs.
- Talks ongoing for Mumbai, Hyderabad and Indore.
- Further expansion depends on partnerships with CGD players.
- Company plans another 50 CNG stations gradually.
Packed LPG / GoGas
- GoGas dealer network exceeds 3,150 dealers.
- Packed LPG sales are around 18,000–20,000 MT/month.
- Company focuses mainly on commercial customers.
- GoGas HORECA customer base exceeds 3,400 accounts.
- GINKARLO GINKARDO promotes pay-for-actual-consumption.
- Returned cylinders are weighed for unused LPG credit.
- Focus remains on transparency and customer retention.
- Reliability and availability remain key differentiators.
Type 4 Cylinder Opportunity
- Type 4 high-pressure cylinder capex is completed.
- Manufacturing facility is located at Butibori/Nagpur.
- Machinery has already been installed.
- Plant operationalization awaits order finalization.
- Deliveries could begin within 1–2 months.
- Cylinders target CNG cascades and automotive applications.
- Customers include CGD players and OEMs.
- Existing 82 CNG cascades support internal requirements.
- Management has not yet provided margin guidance.
Margins & Profitability
- Higher LPG prices inflated reported revenue.
- Percentage PAT margin appears lower due to price impact.
- Management said underlying margins remain intact.
- Higher volumes should improve fixed-cost absorption.
- Larger overseas procurement can improve margins.
- Management expects margins to gradually improve.
- Future revenue/PAT growth targeted around 10–15% QoQ.
- No specific multi-year margin target was provided.
Backward Integration
- Backward integration remains a major strategic priority.
- Company wants greater control across LPG value chain.
- Small storage terminals are being evaluated.
- Potential coastal locations are under discussion.
- Objective is lower intermediary dependence.
- Integration should improve operational efficiency.
- Management expects stronger long-term margins.
Capital Allocation & Expansion
- Company is evaluating multiple expansion models.
- Growth includes company-owned new stations.
- Strategic JVs are also being considered.
- Existing infrastructure acquisitions remain an option.
- Packed LPG bottling network will expand.
- Focus remains on improving asset utilization.
- Cash generation supports further expansion.
- Company remains focused primarily on LPG and CNG.
Promoter & Management
- Promoters continue increasing stake gradually.
- Management reiterated confidence in long-term LPG opportunity.
- Second generation is already involved in operations.
- Family members oversee different business segments.
- BW exited through the secondary market.
- BW's exit does not impact company operations.
- Confidence remains focused on LPG retail and CNG.
Key Risks / Watchpoints
- LPG price volatility can impact reported revenue.
- Auto LPG demand remains price-sensitive.
- CNG expansion depends on station commissioning.
- Type 4 ramp-up depends on order book.
- Margin percentages can fluctuate with LPG prices.
- Tax assessment from October 2025 search remains pending.
- Management does not expect a significant tax liability.
- No specific FY27 revenue number was provided.
KEY TAKEAWAY
- Record growth with sustainable LPG volume momentum.
3August 24, 2026 1.1K 3
