Bharat Petroleum Corporation released its March quarter results, in which its net profit declined marginally by 1 per cent year-on-year to Rs 3,191 crore, from Rs 3,214 crore in the same period last year. However, there was a sharp decline of 57.7 per cent in profit on a sequential basis, mainly due to a sharp increase in exceptional items, which was due to 'impairment loss' (depreciation loss) 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 declined 100 basis points to 8.5 per cent.
Had to suffer loss due to LPG
Its refinery throughput (utilization of processing capacity) stood at 10.40 MMT, which was less than 10.58 MMT in the same quarter last year. Whereas domestic sales stood at 13.86 MMT, registering a marginal growth of 3.28 percent on year-on-year basis. The company said that it is continuously incurring losses on the sale of domestic LPG cylinders, because the sales value remains less than the real cost. Both HPCL and IOCL reported growth in their quarterly profits on strong refining margins and stable fuel demand. Analysts expected oil marketing companies (OMCs) to report a jump in refining margins in the fourth quarter, mainly due to increase in 'product cracks' (difference between the prices of refined products and crude oil) and 'inventory gains' (profit from increase in the value of stock).
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. If refiners buy crude oil at a cheap price and the price goes up, the value of the stock they hold (inventory) increases. Global Brent crude oil prices increased by nearly 94 percent during the January-March period. The main reason for this was the concerns over supply, which arose due to the US-Iran military conflict that started in late February.
Tremendous increase in annual profit
This conflict started with the attack on Iran by America and Israel on 28 February. In response, Tehran also took strong retaliatory action, due to which the 'Strait of Hormuz' was closed. Oil and gas is supplied to India and most parts of the world through this strait. For the full financial year FY26, BPCL reported consolidated revenue from operations at Rs 5.22 lakh crore, compared to Rs 5 lakh crore in FY25. At the same time, net profit increased rapidly from Rs 13,275 crore in the last financial year to Rs 23,303 crore.
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