Bharat Petroleum (BPCL) Q1 25/26 earnings summary

Executive summary

• 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 retail fuel margins remaining robust due to low crude prices and unchanged RSPs.

• Expansion continued with 317 new retail outlets and 99 CNG stations, and digital initiatives like QR code payments and the IRIS platform enhanced operational efficiency.

• Consolidated revenue from operations for Q1 FY26 was ₹129,614.69 crore, up from ₹128,106.39 crore in Q1 FY25.

• Net profit after tax for the quarter was ₹6,839.02 crore, a significant increase from ₹2,841.55 crore in Q1 FY25.

Financial highlights

• Revenue from operations: INR 1,229,578 crore for Q1 FY2026.

• Standalone PAT: INR 6,124 crore; consolidated PAT: INR 6,839 crore.

• Earnings per share: INR 14.33 (standalone); consolidated EPS: ₹16.01.

• 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.

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.

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

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

• Mozambique project remains under Force Majeure, with incremental costs expensed and interest capitalization suspended.