BPCL Reports Significant Decline in Q4 Net Profit, Revenue Remains Steady

Bharat Petroleum Corporation Posts Marginal Net Profit Decline in Q4

Bharat Petroleum Corporation (BPCL) reported its March quarter results, with net profit falling marginally by 1% year-on-year to ₹3,191 crore from ₹3,214 crore posted in the same period last year. However, the company's profit plunged 57.7% on a sequential basis, impacted by a sharp rise in exceptional items due to an impairment loss related to its wholly owned upstream subsidiary, Bharat Petro Resources Limited.

Key Quarterly Performance Metrics

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The company's revenue from operations during the reporting quarter rose to ₹1,34,896 crore from ₹1,26,864 crore a year ago, but moderated 1.2% quarter-on-quarter. The EBITDA fell 13.8% QoQ to ₹10,061 crore, with margins contracting 100 basis points to 8.5%. Bharat Petroleum's refinery throughput stood at 10.40 MMT, falling from 10.58 MMT in the year-ago quarter, while domestic sales came in at 13.86 MMT, registering a modest 3.28% year-on-year growth.

The company said that it continued to incur losses on the sale of domestic LPG cylinders as selling prices remained lower than the actual cost. Meanwhile, its peers, Hindustan Petroleum Corporation (HPCL) and Indian Oil Corporation (IOCL), reported higher quarterly profits on strong refining margins and steady fuel demand. Analysts had expected oil marketing companies to report a jump in fourth-quarter refining margins led by higher product cracks and inventory gains.

Bharat Petroleum's full financial year FY26 results showed a significant improvement, with consolidated revenue from operations of ₹5.22 lakh crore, compared to ₹5 lakh crore in FY25, while net profit jumped sharply to ₹23,303 crore from ₹13,275 crore in the previous fiscal year. However, the company did not disclose its average gross refining margin for the fourth quarter or for fiscal 2026.

The West Asia conflict, which started with the US and Israel attacking Iran on February 28, followed by Tehran's sweeping retaliation that shut the Strait of Hormuz, through which a bulk of India and the world's oil and gas supplies flowed, had a significant impact on the company's quarterly earnings. Bharat Petroleum booked an impairment charge of ₹4,349.13 crore on its investment in Bharat Petro Resources Limited due to weakening prospects in certain oil and gas blocks. The cumulative impairment loss on BPRL investments stood at ₹11,313.83 crore as of March 31, 2026, as per the company's earnings filing.

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