BPCL Q3 Profit Soars 89% to ₹7,188 Crore, Declares Dividend

Introduction

State-owned Bharat Petroleum Corporation Limited (BPCL) announced a robust financial performance for the third quarter of the financial year 2025-26. The oil marketing major reported an 89% year-on-year surge in its consolidated net profit, which stood at ₹7,188 crore for the quarter ending December 31, 2025. This substantial growth from ₹3,806 crore in the same period last year was supported by a healthy increase in revenue and improved operational efficiencies. In a move to reward its shareholders, the company's board also approved a second interim dividend of ₹10 per share.

Detailed Financial Performance

BPCL's revenue from operations for Q3 FY26 saw a 7% increase, reaching ₹1.36 lakh crore compared to ₹1.28 lakh crore in the corresponding quarter of the previous financial year. The growth in the topline reflects stable demand and higher throughput during the period. However, the company's total expenses also rose, albeit at a slower pace. Total expenses for the quarter were recorded at ₹1.27 lakh crore, up from ₹1.23 lakh crore in Q3 FY25. The increase in expenditure was attributed to higher costs of materials consumed, purchase of stock-in-trade, and other operational costs.

Operational Highlights and Margins

A key driver of BPCL's profitability was the significant improvement in its refining margins. The average Gross Refining Margin (GRM) for the nine months ended December 31, 2025, stood at $1.68 per barrel. This marks a substantial increase from the $1.95 per barrel recorded during the same April-December period in 2024. A higher GRM indicates greater efficiency in converting crude oil into valuable petroleum products. Operationally, the refinery throughput for the quarter was 10.51 MMT, while domestic market sales reached 14.07 MMT, signaling steady consumer demand.

Shareholder Returns and Dividend Details

Reflecting its strong financial position, the BPCL board declared a second interim dividend of ₹10 per equity share for the financial year 2025-26. The company has fixed Monday, February 2, 2026, as the record date to determine the eligibility of shareholders for this dividend payout. The dividend is scheduled to be paid to eligible shareholders on or before February 21, 2026. This announcement underscores the company's commitment to delivering value to its investors.

Balance Sheet Strength

BPCL's financial health showed marked improvement, as evidenced by its debt-to-equity ratio. The ratio stood at 0.38 as of December 31, 2025, a significant reduction from 0.58 recorded in the same quarter of the previous year. A lower debt-to-equity ratio suggests a stronger balance sheet and reduced financial risk for the company, providing greater flexibility for future investments and operations.

Strategic Developments

In a significant strategic move, BPCL is set to enhance its crude oil sourcing diversification. The company plans to purchase 12 million barrels of oil from Brazil's Petrobras for $180 million in fiscal 2027. This deal, double the size of its 2026 contract, is part of a broader strategy by Indian refiners to reduce dependence on Russian oil supplies amid ongoing geopolitical tensions and sanctions. This shift towards South American and Middle Eastern suppliers aims to secure a stable and diversified crude supply chain. Additionally, the company noted that the force majeure at the Mozambique Area 1 project, operated by Total E&P, has been resolved. BPCL's subsidiary, Bharat PetroResources Limited (BPRL), incurred and expensed abnormal costs of ₹166 crore related to the project's suspension.

Market Reaction

Despite the strong earnings report, the market's reaction was subdued. On the day of the announcement, shares of Bharat Petroleum Corporation Limited fell by 1.3% to close at ₹349.70 on the National Stock Exchange (NSE). This could be attributed to broader market trends or investors factoring in the results prior to the official announcement.

Conclusion

BPCL's third-quarter results for FY26 highlight a period of strong profitability and operational excellence, driven by higher revenues and significantly improved refining margins. The declaration of a generous interim dividend and a strengthened balance sheet reflect the company's robust financial health. The strategic decision to increase crude oil imports from Brazil signals a proactive approach to navigating the global energy landscape. As the company moves forward, its focus on operational efficiency and strategic sourcing will be crucial for sustaining this growth momentum.