State-owned Bharat Petroleum Corporation Ltd (BPCL) reported a 22.5 per cent fall in September quarter net profit as earnings from operations weakened due to a retail price freeze despite rising costs.
BPCL’s standalone net profit declined to ₹4,993 crore in July-September, the second quarter of fiscal 2027, from ₹6,443 crore a year earlier, according to a company statement.
Revenue from operations rose to ₹1.58 lakh crore from ₹1.22 lakh crore, while Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) fell nearly 14 per cent to ₹9,437 crore from ₹10,968 crore.
India’s second largest fuel retailer earned $32.53 on turning every barrel of crude oil into fuels like petrol and diesel in July-September, as compared to $10.78 a barrel gross refining margin in the same period a year back.
But these gains were wiped away by losses arising from the five month old freeze in retail price revision despite a rise in cost.
BPCL also booked ₹330 crore marketing inventory loss and another ₹397 crore loss due to forex fluctuation.
On a consolidated basis, net profit dropped 21.5 per cent to ₹4,863 crore from ₹6,191 crore, while revenue climbed 29.8 per cent to ₹1.58 lakh crore. Consolidated EBITDA declined 13.4 per cent to ₹9,647 crore.
The divergence between revenue growth and lower earnings highlights the pressure on profitability, even as the firm stepped up investments in refining, gas distribution and alternative fuels.
BPCL reported refinery throughput of 10.41 million tonne in the quarter, operating at 118 per cent of capacity, while domestic market sales stood at 13.47 million tonne. Its refineries had processed 9.82 million tonne of crude oil and sold 12.67 million tonne of fuel in the second quarter of the last fiscal.
The company said it continued investing in infrastructure, supply-chain resilience and digital transformation, while ensuring uninterrupted fuel supplies across the country.
BPCL also has advanced plans for a proposed 10-million-tonne-per-year (MMTPA) greenfield refinery and petrochemical complex at Ramayapatnam in Andhra Pradesh. Its board approved the incorporation of a wholly-owned subsidiary to serve as the dedicated project company, subject to the requisite government, statutory and regulatory approvals.
The proposed complex would expand BPCL’s refining and petrochemical footprint, although the announcement did not specify the project’s investment outlay or construction timeline.
BPCL also commissioned the Matia LPG bottling plant in Goalpara, Assam, its first such facility in the Northeast, as it seeks to strengthen regional supply infrastructure. The company connected 1.22 lakh new households to Piped Natural Gas (PNG) over the past six months.
On the consumer front, BPCL launched Bharatgas Lite ZIP, a premium LPG offering aimed at improving service convenience, and rolled out more than 9,000 clean, hygienic and odour-free Drive Fresh washrooms across its retail network.
The company continued its ‘Zero Ka Dum’ programme to improve LPG quality and consumer safety, while expanding its ‘Defect Mila Toh Refill Free’ initiative, which is now operational in 14 cities.
BPCL said it also stepped up efforts to develop specialised fuels and lower-carbon alternatives. It developed Extreme Weather Grade (XWG) diesel for the Indian Army, designed for military vehicles operating in severe winter conditions and at high altitudes.
In aviation, the company operated a commercial flight using aviation turbine fuel blended with 1 per cent sustainable aviation fuel (SAF), marking a step in its efforts to explore lower-carbon fuel options. The announcement did not disclose the flight’s route, the volume of blended fuel used or plans for wider commercial deployment.
Separately, BPCL partnered with Tiki Tar and Shell India Private Limited (TTSIPL) to expand its value-added bitumen portfolio.
BPCL, India’s second-largest oil marketing company, operates refineries in Mumbai, Kochi and Bina with combined capacity of about 35.3 million tonne per annum. Its retail network includes more than 25,300 fuel stations and over 6,250 LPG distributorships.
The company has set a target of becoming a net-zero energy company by 2040 for Scope 1 and Scope 2 emissions, which cover direct emissions and those associated with purchased energy, respectively. Its investments in refining, natural gas infrastructure and alternative fuels form part of its broader effort to adapt its business to India’s changing energy requirements.
Published on October 24, 2026
