Whalesbook
Bharat Petroleum Corporation Limited (BPCL) has confirmed that its purchases of Russian crude oil are exclusively from entities not currently subject to international sanctions. This clarification comes amid ongoing fluctuations in the global energy markets.
Retail Fuel Losses a Short-Term Concern
BPCL acknowledged it is experiencing a short-term challenge related to losses on its retail fuel sales. Despite this, the company stated that there is no current shortage of retail fuels and that credit lines for dealers are unaffected. BPCL also indicated it cannot maintain crude oil inventory for more than 30 days.
March Quarter Profit Hit by Asset Write-Down
For the fourth quarter ending March 31, BPCL's net profit was Rs 3,191.49 crore, showing little change from Rs 3,214.06 crore in the same period last year. This was significantly lower than the Rs 7,545.27 crore profit recorded in the prior quarter. The flat year-on-year result was primarily due to a Rs 4,349.13 crore impairment loss on investments held by its subsidiary, Bharat PetroResources Ltd. This write-down resulted from changes in the outlook for its oil and gas blocks, reducing the value of upstream investments.
Full Fiscal Year Profit Jumps 75%
Despite the quarterly dip, BPCL reported strong growth for the full fiscal year ended March 31, 2026. Net profit increased by 75% to Rs 23,303.22 crore, up from Rs 13,275.26 crore in the previous fiscal year (FY25).
The quarterly results also factored in losses from selling petrol, diesel, and cooking gas (LPG) below cost in March. This pricing strategy, adopted by BPCL and other state-owned retailers, aimed to protect the domestic market from international price swings linked to the West Asia conflict. The full financial impact of these measures is expected to appear in the June quarter's results. Additionally, BPCL recorded a Rs 12,318.52 crore under-recovery on domestic LPG sales below cost in FY26, with government subsidy payouts pending confirmation of timelines.
Operational Performance Highlights
BPCL's revenue from operations reached Rs 1.34 lakh crore in the fourth quarter and Rs 5.22 lakh crore for the full fiscal year. Refinery throughput in Q4 was 10.4 million tonnes, a slight decrease from 10.58 million tonnes a year ago, while fuel sales rose to 13.86 million tonnes. For the full fiscal year FY26, refinery throughput improved to 41.15 million tonnes from 40.51 million tonnes in FY25. Fuel sales also increased to 54.18 million tonnes, up from 52.40 million tonnes in the prior year.