BPCL posts ₹3,962-crore Q1FY27 loss as fuel price freeze, LPG under-recoveries hit margins

Bharat Petroleum Corporation Ltd (BPCL) reported a consolidated net loss of ₹3,962.13 crore for the first quarter of FY27, reversing from a profit in the year-ago period, as the state-run fuel retailer absorbed losses from selling petrol, diesel and domestic LPG below cost during a period of elevated global crude oil prices.

The company's revenue from operations rose 23% year-on-year to ₹1,59,479.28 crore in the April-June quarter from ₹1,29,577.89 crore a year earlier, driven by higher fuel prices. However, the increase in revenue was insufficient to offset losses arising from suppressed marketing margins and under-recoveries on LPG sales.

Fuel price freeze dents earnings

BPCL attributed the quarterly loss primarily to suppressed marketing margins on select petroleum products, stating that the impact was only partially offset by higher refining margins.

The company's earnings came under pressure after state-owned oil marketing companies, including BPCL, Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Ltd (HPCL), held retail prices of petrol and diesel unchanged for nearly two-and-a-half months despite a sharp surge in global crude oil prices following geopolitical tensions in West Asia.

Although fuel prices were later raised by more than ₹7.50 per litre and domestic LPG prices by ₹89 per 14.2-kg cylinder, the revisions were insufficient to fully recover higher input costs.

BPCL reported an LPG under-recovery of ₹3,485.22 crore during the June quarter. It also said unpaid LPG subsidy dues stood at ₹12,318.52 crore as of March 31, 2026.

Sales volumes, refinery throughput decline

The oil marketing company sold 13.62 million tonnes of petroleum products during the quarter, marginally lower than 13.86 million tonnes in the corresponding period last year.

Its refineries processed 10.15 million tonnes of crude oil in the quarter, compared with 10.40 million tonnes a year earlier, reflecting a slight decline in refinery throughput.

Notably, the June quarter was marked by heightened volatility in global energy markets as the conflict involving the US, Israel and Iran pushed up crude oil prices, freight rates and insurance costs. The higher input costs significantly increased the burden on domestic fuel retailers, particularly after the government-owned oil marketing companies delayed passing on the increase to consumers, according to BPCL.