BPCL's profits plummet due to oil crisis and extra charges

Bharat Petroleum Corporation released its March quarter results, reporting a marginal 1% decline in net profit year-over-year to ₹3,191 crore (₹3,191 crore), compared to ₹3,214 crore (₹3,214 crore) in the same period last year. 

However, on a sequential basis, profit declined by a massive 57.7%. This was primarily due to a significant increase in exceptional items, primarily due to impairment losses related to its wholly-owned upstream subsidiary, Bharat Petro Resources Limited.

Meanwhile, revenue from operations during the reporting quarter increased to Rs 1,34,896 crore from Rs 1,26,864 crore a year ago, 

but declined by 1.2 per cent quarter-on-quarter. EBITDA declined 13.8 per cent quarter-on-quarter to Rs 10,061 crore, and margins fell 100 basis points to 8.5 per cent.

Losses suffered due to LPG

Its refinery throughput (utilization of processing capacity) stood at 10.40 MMT, lower than 10.58 MMT in the same quarter last year. Domestic sales were 13.86 MMT, a marginal increase of 3.28% year-on-year. 

The company reported continued losses on domestic LPG cylinder sales as sales prices remained below real costs. Both HPCL and IOCL reported an increase in quarterly profits due to strong refining margins and stable fuel demand. 

Analysts had expected oil marketing companies (OMCs) to report a rise in refining margins in the fourth quarter, primarily due to increased product cracks (the difference between the prices of refined products and crude oil) and inventory gains (profits arising from increased stock values).

increase in crude oil prices

However, BPCL, India's third-largest oil refiner by capacity, did not disclose its average gross refining margin for the fourth quarter or fiscal year 2026. Refiners increase the value of inventories held by them if crude oil prices rise after they buy it at cheaper rates. 

Global Brent crude oil prices rose by approximately 94% during the January-March period, primarily due to supply concerns stemming from the US-Iran military conflict that began in late February.

Tremendous increase in annual profit

The conflict began with the US and Israeli attack on Iran on February 28. Tehran retaliated strongly, closing the Strait of Hormuz, which supplies oil and gas to India and much of the world. 

For the full financial year, FY26, BPCL reported consolidated revenue from operations of ₹5.22 lakh crore, 

compared to ₹5 lakh crore in FY25. Net profit also increased sharply to ₹23,303 crore from ₹13,275 crore in the previous financial year.