Agarwal Industrial wins ₹218.59 crore BPCL tender 2026

Key development

Agarwal Industrial Corporation Limited (AICL) has secured a bulk bitumen supply contract from Bharat Petroleum Corporation Limited (BPCL) valued at ₹218.59 crore. The tender covers the supply of 42,800 metric tonnes (MT) of bulk bitumen in VG-30 and VG-40 grades. Deliveries are split between BPCL’s Kakinada and Mangalore locations, based on the award details shared in the update. The contract adds to a string of supply wins the company has highlighted across oil marketing companies. Separately, the company has also disclosed a large Indian Oil Corporation (IOCL) tender win of about ₹330.05 crore for supplies to Kakinada. Together, these two awards point to a heavy pipeline linked to road construction-grade bitumen demand.

BPCL tender: quantity, grades and value

The BPCL contract is for VG-30 and VG-40 grades, which are commonly used viscosity grades for road works. The total quantity under this award is 42,800 MT. The overall contract value is ₹218.59 crore, as stated in the tender details. AICL’s supply is structured across two locations, with a larger share allocated to Kakinada. The announcement frames the contract as a “major tender” win, indicating scale relative to typical single-location supply awards. No changes to the quantities or contract value were indicated beyond the location split.

Location-wise split: Kakinada vs Mangalore

BPCL’s Kakinada location is set to receive 32,000 MT under the contract, valued at ₹166.68 crore. The Mangalore location is allocated 10,800 MT, valued at ₹51.91 crore. This implies Kakinada accounts for the bulk of the award by both volume and value. The update does not specify the dispatch schedule by month, but it clearly allocates volumes to each location. The grades remain the same across locations (VG-30 and VG-40) as per the tender description. The contract numbers indicate that AICL’s Kakinada-linked supplies feature prominently in its recent order flow.

Contract period and delivery window

The BPCL contract runs from January 23, 2026 to January 22, 2027. That places the award over a 12-month delivery period. The contract period is relevant because bitumen procurement tends to be aligned with execution cycles for roadwork and allied infrastructure activity. The update does not outline escalation clauses, pricing adjustments, or cancellation terms. It also does not describe whether deliveries will be routed through a specific logistics arrangement. Still, the period provides clarity that this is not a one-off shipment but a year-long supply engagement.

IOCL tender: ₹330.05 crore award for Kakinada

AICL has also disclosed a significant IOCL tender for the supply of bulk bitumen (VG-30 and VG-40) to Kakinada locations. The total estimated value of the tender is around ₹330.05 crore. The order comprises a firm quantity of about 60,500 MT valued at ₹213.56 crore and an optional quantity of about 33,000 MT valued at ₹116.50 crore. Combined, the awarded quantity totals around 93,500 MT. The company described this as a significant achievement that strengthens its relationship with IOCL, based on the statement included in the update.

IOCL execution structure: parcels and tranches

The IOCL supply award is structured into multiple consignments as per IOCL terms. The firm quantity of approximately 60,500 MT is split across 11 parcels. The optional quantity of about 33,000 MT is split across six parcels. This indicates an execution plan with multiple dispatches rather than a single bulk movement. The disclosure also notes that values are “based on current market prices,” anchoring the tender value estimates to prevailing rates. The filing referenced in the update was made during market hours. The same tender details are repeated in the provided text, reinforcing the quantities and estimated values.

Other disclosed wins and operational updates

The broader context shared includes multiple prior supply wins across oil marketing companies. The company said it secured a project with HPCL to supply 49,000 MT of VG30 and 9,000 MT of VG40 bitumen, valued at around ₹255 crore. It also mentioned that in February 2025, AICL signed a supply agreement with BPCL for bulk bitumen (VG30 and VG40) with a total value of ₹303 crore. Separately, the text lists a set of contracts: BPCL supply of 45,300 MT valued at about ₹232.60 crore for Mumbai and Haldia; HPCL supply of 1,50,000 MT valued at about ₹500.00 crore for Mangalore and Haldia; IOCL supply of 5,500 MT valued at about ₹21.50 crore; and an additional BPCL contract for 12,500 MT valued at about ₹55.00 crore. These four contracts are stated to total 1,95,300 MT valued at approximately ₹732.60 crore.

Fleet expansion and capacity mentioned

The update also notes an operational expansion under AICL Overseas FZ-LLC. AICL said it expanded its fleet to 11 vessels with a total carrying capacity of approximately 1,14,000 MT. This is presented as part of “recent developments,” alongside the order wins. The disclosure does not connect specific vessels to the BPCL or IOCL tenders. But the fleet detail indicates the company is positioning logistics capacity to service larger and multiple-location supply commitments. The company’s client list in the text includes Indian Oil, Bharat Petroleum, HP, and Ashoka Buildcon, among others.

Key numbers at a glance

Market impact and why these awards matter

The immediate market reference in the text is that AICL shares “surged” in Wednesday trading after the IOCL order disclosure, dated Mumbai, September 17, 2025. While the BPCL award is dated later and carries a separate value and volume, both contracts are tied to bulk bitumen supply in VG-30 and VG-40 grades. The BPCL award extends AICL’s execution visibility through January 2027. The IOCL award includes an optional component, which the company has presented within the overall tender value and quantity. For investors, the disclosed parcel structure and location allocations provide clearer visibility on how quantities may be executed under customer terms.

Conclusion

Agarwal Industrial Corporation’s ₹218.59 crore BPCL tender adds a year-long supply contract spanning Kakinada and Mangalore, with Kakinada accounting for the larger share. The company’s earlier disclosed IOCL tender of about ₹330.05 crore for Kakinada further underscores the scale of its bulk bitumen order flow in VG-30 and VG-40 grades. Alongside these contracts, the text points to additional supply agreements and a fleet expansion to 11 vessels with about 1,14,000 MT carrying capacity. The next key milestones to watch will be execution updates through parcels and tranches under IOCL terms and deliveries over the BPCL contract period through January 2027.