State-owned Bharat Petroleum Corporation Ltd (BPCL) on Tuesday reported a flat net profit in the quarter ended March 31 after it took an impairment loss of ₹4,349 crore on its upstream assets.

Net profit of ₹3,191.49 crore in January-March - the fourth quarter of the 2025-26 fiscal year - compared with ₹3,214.06 crore earning in the same period a year back and ₹7,545.27 crore profit of the preceding quarter, according to a stock exchange filing of BPCL.

The flat year-on-year growth came after it took an impairment on investment its subsidiary has made in oil and gas blocks globally and in India.

"During FY 2025-26, (BPCL's wholly-owned upstream subsidiary) Bharat PetroResources Ltd has impaired investments due to change in prospects of its blocks," it said. Accordingly, "an impairment loss of ₹4,349.13 crore has been recognised based on the value of in use of assets as on March 31, 2026."

The gross carrying value of upstream investment has come down from ₹15,426.37 crore to ₹11,313.83 crore.

For the fiscal year ended March 31, BPCL's net profit soared 75% to ₹23,303.22 crore from ₹13,275.26 crore in the previous FY25.

The quarterly profit came despite the company suffering huge losses on selling petrol, diesel, and cooking gas LPG below cost in March, as it, along with other state-owned fuel retailers, insulated the domestic market from volatility that hit the international market after the start of the West Asia conflict.

The full impact of the ongoing war-driven disruption in global energy markets will be visible in the June quarter.

Also, the company had an under-recovery of ₹12,318.52 crore in FY26 on selling domestic cooking gas LPG below cost. This has to be made good by the government by way of subsidy but no timelines for the payout has been intimated.

Revenue from operations came in at ₹1.34 lakh crore in Q4 and ₹5.22 lakh crore in FY26.

BPCL's refineries processed slightly lower crude oil into fuels in Q4 at 10.4 million tonne as compared to 10.58 million tonne a year back, the filing showed. Fuel sales rose to 13.86 million tonne from 13.42 million tonne in January-March 2025.

In FY26, refinery throughput increased to 41.15 million tonne from 40.51 million tonne in the previous year. Fuel sales rose to 54.18 million tonne from 52.40 million tonne in FY25.

(Except for the headline, Fortune India has not edited the content of this PTI report.)