BPCL Q2 net profit falls 22.5% to ₹4,993 crore as fuel price freeze weighs on earnings

State-owned Bharat Petroleum Corporation Ltd (BPCL) reported a 22.5% decline in standalone net profit to ₹4,993 crore in the September quarter of FY27, as a freeze on retail fuel prices weighed on earnings despite higher revenue and improved refining margins.

The oil marketing company’s net profit stood at ₹6,443 crore in the corresponding quarter a year earlier. Revenue from operations rose to ₹1.58 lakh crore in July-September from ₹1.22 lakh crore, while earnings before interest, taxes, depreciation and amortisation (EBITDA) declined nearly 14% to ₹9,437 crore from ₹10,968 crore.

Refining margins rise, but marketing losses weigh on profitability

BPCL earned a gross refining margin (GRM) of $32.53 per barrel during the quarter, compared with $10.78 per barrel in the year-ago period. However, gains from refining were offset by losses arising from the freeze on retail fuel price revisions, which continued despite rising costs.

The company also recorded a marketing inventory loss of ₹330 crore and a foreign exchange-related loss of ₹397 crore.

On a consolidated basis, net profit declined 21.5% to ₹4,863 crore from ₹6,191 crore in the corresponding quarter last year. Revenue increased 29.8% to ₹1.58 lakh crore, while consolidated EBITDA fell 13.4% to ₹9,647 crore.

The divergence between revenue growth and lower earnings highlights the pressure on BPCL’s profitability amid constrained retail pricing flexibility and higher operating costs.

Refinery throughput rises as BPCL advances Andhra Pradesh project

BPCL reported refinery throughput of 10.41 million tonnes in the September quarter, operating at 118% of capacity. Domestic market sales stood at 13.47 million tonnes, compared with refinery throughput of 9.82 million tonnes and fuel sales of 12.67 million tonnes in the year-ago period.

The company is advancing plans for a proposed 10-million-tonne-per-year (MMTPA) greenfield refinery and petrochemical complex at Ramayapatnam in Andhra Pradesh. Its board has approved the incorporation of a wholly owned subsidiary to serve as the dedicated project company, subject to the required government, statutory and regulatory approvals.

The announcement did not specify the proposed project’s investment outlay or construction timeline.

BPCL also commissioned the Matia LPG bottling plant in Goalpara, Assam, its first such facility in the Northeast. The company said it connected 1.22 lakh new households to piped natural gas (PNG) over the past six months.

BPCL expands alternative fuels and consumer initiatives

The company continued to develop specialised fuels and lower-carbon alternatives alongside its conventional refining and marketing operations.

BPCL developed Extreme Weather Grade (XWG) diesel for the Indian Army, designed for military vehicles operating in severe winter conditions and at high altitudes. It also operated a commercial flight using aviation turbine fuel blended with 1% sustainable aviation fuel (SAF). The company did not disclose the flight’s route, the volume of blended fuel used or plans for wider commercial deployment.

On the consumer front, BPCL launched Bharatgas Lite ZIP, a premium LPG offering, and rolled out more than 9,000 Drive Fresh washrooms across its retail network. It continued its ‘Zero Ka Dum’ programme focused on LPG quality and consumer safety, while expanding its ‘Defect Mila Toh Refill Free’ initiative to 14 cities.

BPCL also partnered with Tiki Tar and Shell India Private Limited to expand its value-added bitumen portfolio.

The company operates refineries in Mumbai, Kochi and Bina, with a combined capacity of about 35.3 million tonnes per annum. Its retail network includes more than 25,300 fuel stations and over 6,250 LPG distributorships.

BPCL has set a target of becoming a net-zero energy company by 2040 for Scope 1 and Scope 2 emissions, which cover direct emissions and those associated with purchased energy, respectively.