DBT Bureau
Pune, 7 Jan 2026
HPCL has successfully commissioned the Residue Upgradation Facility (RUF) at its 15 MMTPA Visakh Refinery. The facility, with a capacity of 3.55 MMTPA, uses advanced LC-Max–based residue hydrocracking technology to achieve around 93% conversion of bottom oils into high-value products.
With the commissioning of RUF, the Visakh Refinery can now enhance its distillate yield by up to 10% from pre-capacity expansion levels. The project is expected to significantly improve Gross Refining Margins (GRMs), driven by a superior product slate, greater flexibility to process heavier and opportunity crudes, and higher value realisation per barrel.
The increased middle-distillate output will help HPCL narrow the gap between its HSD marketing and refining volumes, reduce dependence on external sourcing, strengthen the supply chain, and improve overall profitability through better margin capture.
Following the RUF commissioning, the Nelson Complexity Index of the Visakh Refinery has increased to 11.6, placing it among India’s most advanced deep-conversion refineries. The unit is integrated with the advanced LC-Max Digital suite, enabling efficient and optimised operations, improved yield control, and sustained margin management.
From a closing price of ₹391.35 on August 1 2025, the stock has surged around 22.3% to ₹478.65, reflecting strong buying interest and positive market sentiment.
