State-run Bharat Petroleum Corporation (BPCL) on Friday reported an almost 22 per cent year-on-year (y-o-y) decline in its consolidated net profit at around ₹4,863 crore in Q2 FY27 as higher refinery margins were offset by losses from sale of petrol, diesel and liquefied petroleum gas (LPG).
The PSU oil marketing company (OMC) had incurred a loss of around ₹1,873 crore on a quarter-on-quarter (q-o-q) basis.
BPCL’s consolidated total income during the September quarter this fiscal year stood at roughly ₹1.58 lakh crore compared to ₹1.61 lakh crore in Q1 FY27 and ₹1.23 lakh crore in Q2 FY26.
Its consolidated total expenses during Q2 FY27 stood at around ₹1.52 lakh crore against ₹1.66 lakh crore in Q1 FY27 and ₹1.15 lakh crore in Q2 FY26.
“The lower profit during April-September 2026 is mainly due to suppressed marketing margin on certain petroleum products which was partially offset by higher refining margin,” BPCL said in its results filing on the BSE.
The company’s marketing margins got impacted as PSU OMCs have been selling petrol, diesel and LPG below market rates to shield the common man from volatile prices due to the West Asia conflict.
As on September 30, 2026, BPCL’s cumulative under recoveries on LPG stood at ₹17,334.40 crore (March 31, 2026: ₹12,318.52 crore).
The company’s refining throughput stood at 10.41 million tonnes (mt) in Q2 FY27, compared to 10.15 mt in Q1 FY27 and 9.82 mt in Q2 FY26.
Domestic sales stood at 13.47 mt in Q2 FY27 against 13.62 mt in Q1 FY27 and 12.67 mt in Q2 FY26. Export volume stood at 0.59 mt in Q2 FY27, compared to 0.51 mt in Q1 FY27 and 0.36 mt in Q2 FY26.
BPCL said that it incorporated a wholly owned subsidiary as a dedicated project company for the proposed greenfield refinery and petrochemical complex at Ramayapatnam in Andhra Pradesh.
“Establishing the subsidiary will provide a dedicated legal and governance structure to carry out project activities with an initial authorised share capital of up to ₹4,900 crore,” it said.
The incorporation of this entity will support due diligence activities, engagement with lenders and potential partners and development of an optimal financing and partnership structure. The detailed feasibility reports are under finalisation and accordingly the financial investment decision and financial commitments will be considered separately by the competent authorities at the appropriate stage, BPCL added.
Published on October 23, 2026
