Bharat Petroleum Corporation Limited (BPCL) shares exhibited volatility on Wednesday following the state-run oil marketer’s announcement of a 28 percent year-on-year increase in consolidated net profit, reaching approximately ₹5,625 crore for Q4FY26.
The stock initially dipped to a low of ₹280.05 but recovered nearly 2 percent to reach ₹291.80, compared to the previous close of ₹286.45.
During the post-earnings conference call, BPCL management reported that the gross refining margin for FY26 stood at $11.74 per barrel and confirmed that crude supplies have been secured through July. The company indicated that processing of Russian oil rose to 31 percent in the March quarter, up from 25 percent in December. Additionally, management revealed that 42 percent of the Mozambique project has been completed, with the first liquefied natural gas (LNG) cargo expected by mid-2028. For FY27, BPCL plans a capital expenditure of ₹25,000 crore, an increase from the ₹20,400 crore spent in FY26.
Brokerage firm Motilal Oswal Financial Services maintained a neutral outlook on BPCL, stating that the earnings beat was primarily due to higher-than-expected blended gross marketing margins. The firm noted that refining throughput was recorded at 10.4 million metric tons (MMT), while marketing volumes, excluding exports, increased by 3 percent year-on-year to 13.9 MMT. The report highlighted that BPCL’s cumulative negative net buffer resulting from LPG under-recoveries stood at ₹12,320 crore as of March 2026, showing a slight improvement from ₹12,880 crore in December 2025. Motilal Oswal also pointed out that BPCL’s standalone business has achieved a net cash positive status, with cash and bank balances exceeding total borrowings by ₹640 crore.
In contrast, Nomura retained a buy rating on BPCL with a target price of ₹460. The brokerage acknowledged that while the company continues to experience pressures from fuel marketing losses and LPG under-recoveries, it remains in a stronger position than Hindustan Petroleum Corporation Limited due to lower marketing exposure.
Published on May 20, 2026.
