BPCL profit falls 21% to Rs 4,863 crore

Bharat Petroleum Corporation Limited (BPCL) reported a 21.45 per cent fall in consolidated net profit for the July-September quarter of FY27, as weak marketing margins on petrol, diesel and liquefied petroleum gas (LPG) outweighed higher refining earnings. BPCL profit stood at Rs 4,863.05 crore, down from Rs 6,191.49 crore in the same quarter last year, the state-run refiner said in a regulatory filing on Friday.

Revenue from operations rose 29.78 per cent to Rs 1,57,818 crore from Rs 1,21,605 crore a year earlier. Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 13.37 per cent to Rs 9,647 crore from Rs 11,136 crore. The gap between rising revenue and falling BPCL profit shows how much of the extra sales value was absorbed by higher crude costs and fuel sold below market rates.

BPCL profit hit by marketing margins

BPCL said the lower profit during April-September 2026 was mainly due to suppressed marketing margins on certain petroleum products, partly offset by higher refining margins. Public sector oil marketing companies have been selling petrol, diesel and LPG below market rates, which left marketing earnings thin even as crude prices stayed high. The refining margin improved, but the gain did not cover the marketing shortfall.

The company reported a gross refining margin of USD 32.53 per barrel, against USD 10.78 a year earlier. That improvement cushioned the result. Even so, BPCL profit fell year on year, because the marketing business gave back more than refining added.

On a standalone basis, BPCL profit fell 22.50 per cent to Rs 4,993 crore from Rs 6,443 crore, while standalone revenue rose 29.78 per cent to Rs 1,57,779 crore. Standalone EBITDA declined 13.96 per cent to Rs 9,437 crore.

Refinery runs stay strong

Refinery runs stayed strong even as BPCL profit fell. Refinery throughput reached 10.41 million metric tonnes in the quarter, with capacity utilisation at 118 per cent. Domestic market sales stood at 13.47 million metric tonnes. During the quarter, BPCL expanded its LPG and PNG network, improved customer amenities and worked on indigenous technology and alternative fuel solutions.

BPCL Q2 results also included a board decision on the proposed Ramayapatnam Refinery and Petrochemical Complex. The board approved the incorporation of a dedicated project company for the project. The company said it continued to invest in infrastructure, supply chain resilience and digital transformation.

BPCL shares closed at Rs 281.25 on Friday, down 1.83 per cent. The share price move followed the results announcement, which landed while the wider market was also weak on high crude prices and Middle East tensions.

BPCL profit in the first half

For the first half of FY27, BPCL profit fell to Rs 2,990.35 crore from Rs 13,030.51 crore in the same period last year. First-half revenue rose to Rs 3.17 lakh crore from Rs 2.51 lakh crore. The half-year comparison includes a consolidated loss of Rs 1,872.70 crore in the first quarter of FY27, which pulled the six-month profit down sharply.

Bharat Petroleum is one of India's largest fuel retailers, and its quarterly numbers are read as a gauge of how the fuel pricing freeze feeds through to oil marketing companies. The September quarter showed revenue growth without profit growth, because the marketing margin stayed suppressed. BPCL Q2 results underline that gap.

The LPG account remains a drag on the company. BPCL reported cumulative under recoveries on LPG of Rs 17,334.40 crore as of 30 September 2026, up from Rs 12,318.52 crore at the end of March. Revenue from LPG sales has not been recognised to the extent of this negative buffer.