4 June 2020 BPCL posted an EBITDA beat in 4QFY20 on better-than-expected reported GRM counterpoised with marginally weaker marketing margins. However, refining throughput (+2% YoY) and marketing sales (-5% YoY) were in line with our estimates. The company has confirmed that throughput ramped up to 83% after a dip to ~63% in Apr20 for all group refineries. Sales demand has also revived and is now 30% lower YoY (up from being ~55% lower in Apr20). Due to slim possibility of a divestment in these circumstances, we maintain a Neutral stance on BPCL. Also, we do not see much upside despite the expected divestment. Reported EBITDA came in higher than est. at INR5.9b (-87% YoY) owing to better-than-expected refining margin. Inventory loss for the quarter stood at INR49b (refining at INR29.6b and marketing at INR19.4b). Adj. for the same, EBITDA came in at INR54.9b.