Bharat Petroleum (BPCL) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 consolidated revenue from operations was ₹129,614.69 crore, up from ₹128,106.39 crore in Q1 FY25, with net profit after tax rising to ₹6,839.02 crore from ₹2,841.55 crore in Q1 FY25.

• Q1 FY2026 saw strong operational performance with refinery throughput at 118% of nameplate capacity and distillate yield at 84.96%, despite volatile oil prices and narrowing Russian crude discounts.

• Domestic petroleum product sales grew 3.19% year-on-year to 13.58 MMT, with robust retail fuel margins and continued expansion in retail, CNG, and green energy.

• Major projects advanced, including Bina Refinery and Petrochemical Expansion (14% complete) and Mumbai Refinery upgradation (completion by May 2029).

• Significant operational milestones included commissioning of key power and hydro projects and expansion of global footprint to 92 countries.

Financial highlights

• Revenue from operations: INR 1,229,578 crore for Q1 FY2026; consolidated PAT: INR 6,839 crore; standalone PAT: INR 6,124 crore.

• Operating margin improved to 6.32% from 2.68% in Q1 FY25; net profit margin rose to 5.28% from 2.22% in Q1 FY25.

• Gross refining margin (GRM): $4.88/bbl, down from $7.86/bbl in Q1 FY2025.

• CapEx for Q1: INR 2,382 crore; FY2026 guidance: INR 20,000 crore.

• Group gross borrowings: INR 39,452 crore; net debt-to-equity at group level: 0.25.

Outlook and guidance

• CapEx guidance: INR 20,000 crore for FY2026, INR 22,000–25,000 crore for FY2027, peaking at INR 35,000 crore in FY2028–2029.

• Debt-to-equity expected to remain comfortable at 0.1–0.2 in near term, rising to ~1 at peak CapEx, then normalizing.

• Awaiting allocation of government-approved compensation for LPG under-recoveries, not recognized in current quarter.

• Russian crude procurement expected to remain at 30–35% of total crude, barring new sanctions.

• No immediate plans for auto fuel price cuts due to ongoing geopolitical uncertainties.