BPCL Q1 Results 2026 Highlights: OMC stock posts net loss of ₹3,962.13 crore on higher crude prices, revenue up 23%

BPCL's refinery throughput declined to 10.15 million metric tonnes (MMT) during the quarter from 10.42 MMT in the corresponding quarter last year and 10.40 MMT in the March quarter. Meanwhile, market sales edged up to 13.62 MMT from 13.58 MMT a year earlier, while export sales increased to 0.51 MMT from 0.45 MMT. Domestic market sales growth slowed sharply to 0.29% during the quarter, compared with 3.19% in the year-ago period.

BPCL reported a loss before exceptional items and tax of ₹5,305 crore, against a profit of ₹8,156 crore in the same quarter last year. Loss before tax also stood at ₹5,305.18 crore, compared with profit before tax of ₹8,156 crore a year earlier.

Total expenses rose sharply during the quarter, driven by higher cost of materials consumed, purchase of stock-in-trade, and changes in inventories. The cost of materials consumed increased to ₹90,588 crore from ₹53,686 crore in the year-ago quarter, while purchase of stock-in-trade climbed to ₹65,348 crore from ₹40,783 crore.

Meanwhile, finance costs rose to ₹415 crore from ₹373 crore, depreciation and amortisation expenses increased to ₹2,066 crore from ₹1,882 crore, and other expenses stood at ₹6,906 crore, compared with ₹6,145 crore in the corresponding quarter last year.

The OMC stock ended 2.94% lower at ₹309.85 per share on BSE.

Crude oil prices have rebounded amid renewed hostilities in West Asia after easing in June following a ceasefire agreement between the two countries. Brent crude, which had surged to $125 a barrel in April before retreating, is now back near $95 a barrel. Goldman Sachs has warned that prices could climb to $120 a barrel by the fourth quarter if the conflict persists.

Higher crude prices are a key headwind for oil marketing companies such as BPCL, as they increase input costs. If retail fuel prices are not raised in line with higher crude costs, marketing margins come under pressure, hurting the company's profitability.

Earnings Before Interest, Tax Depreciation and Amortisation (EBITDA) for the quarter stood at a negative ₹4,077 crore, compared to an EBITDA profit of ₹10,060 crore during the March quarter.

Its revenue from operations came in at ₹1,59,479.28 crore, up 23% versus ₹1,29,577.89 crore in the year-ago period. Sequentially, it rose over 18% from ₹1,35,960.14 crore in March quarter.

BPCL reported a standalone net loss of ₹3,962.13 crore in the June quarter (Q1FY27) as against a net profit of ₹6,123.93 crore in the same quarter last year. Meanwhile, in the March quarter as well, the OMC posted a net profit of ₹3,191.49 crore.

The stock declined around 2% in intra-day deals today to its day's low of ₹313.25 per share on BSE. The decline was aided by negative sentiment in the broader markets with benchmark indices Nifty and Sensex down around 1% each. At 2:40 pm, it was down 0.88% at ₹316.45 per share on BSE.

Kotak Institutional Equities expects BPCL to report a gross refining margin (GRM) of US$23 per barrel, compared with US$17.8 per barrel in the March quarter and US$4.9 per barrel a year ago. However, the brokerage expects stronger refining profitability to be offset by adventitious inventory losses of US$2 per barrel each in refining and marketing, as inventories procured at higher crude prices lost value after prices declined later in the quarter.

Kotak Institutional Equities expects BPCL's fuel marketing business to remain under severe pressure during the June quarter. It estimates auto fuel under-recoveries of around Rs270 bn, compared with Rs66 bn in the previous quarter and an over-recovery of Rs80 bn a year earlier. The brokerage also expects domestic LPG under-recoveries to widen to Rs64 bn from Rs13.4 bn in the March quarter, highlighting the impact of elevated crude prices and unchanged retail fuel prices.

BPCL's refining operations are expected to remain relatively stable despite a challenging earnings environment. Crude throughput is estimated at 10.3 million metric tonnes, down 1.2% year-on-year and 1% quarter-on-quarter, indicating only a modest decline in refinery processing volumes. Even with healthy refining margins, overall profitability is expected to remain under pressure as marketing losses continue to outweigh gains from the refining business.

In the fourth quarter of FY26, BPCL reported a 57.7% decline in standalone net profit to ₹3,191 crore from ₹7,545 crore in the corresponding quarter of the previous year. The company also reported a one-time loss of ₹4,349 crore during the quarter. Revenue from operations slipped 0.3% to ₹1.18 lakh crore from ₹1.19 lakh crore a year earlier, while EBITDA declined 13.8% to ₹10,061 crore from ₹11,677 crore.

Consequently, the EBITDA margin narrowed to 8.5% from 9.8% in the year-ago period. Investors will closely watch whether BPCL can sustain its momentum in the first quarter of FY27.

Kotak Institutional Equities expects BPCL to report an adjusted EBITDA loss of Rs185 bn in the June quarter after factoring in Rs19 bn of LPG compensation. According to the brokerage, higher crude costs and steep losses in petrol and diesel marketing are expected to weigh on earnings, while domestic LPG under-recoveries are also likely to rise sharply during the quarter.

Shares of BPCL have risen 1.84% over the last five trading sessions. The stock has gained 1% in the past month, but declined 10.14% over the past six months and 17.44% on a year-to-date basis. Over the last one year, the stock has fallen 7.13%.

The trading window of the company is closed from July 1 to July 24 for designated persons and their immediate relatives, in accordance with SEBI rules to prevent insider trading.

Following the announcement of its June quarter (Q1 FY27) results, Bharat Petroleum Corporation Ltd. (BPCL) will host a conference call with investors and analysts on Thursday, July 23, 2026, at 12:00 p.m. (IST) to discuss the company's financial performance and address queries.

Conference dial-in details:

Universal Access: +91 22 6280 1342 / +91 22 7115 8243

International Toll-Free Numbers:

Singapore: 8001012045

Hong Kong: 800964448

UK: 08081011573

USA: 18667462133

Bharat Petroleum Corporation Limited (BPCL) declared its latest second interim dividend of ₹10 per share on January 23, 2026, during the board meeting held to approve the financial results for the quarter ended December 31, 2025.