BPCL Surpasses Rivals with Record Q1 Profit, Industry-Best Per-Pump Sales

BPCL outperformed its PSU rivals in Q1, reporting a profit of Rs 6,124 crore, surpassing IOC's Rs 5,689 crore and HPCL's Rs 4,371 crore. BPCL's refining margins were USD 4.88 per barrel, higher than IOC's USD 2.15 and HPCL's USD 3.08. It also sold more fuel per pump at 153 kiloliter per month. The bumper earnings were buoyed by a freeze on retail prices, which boosted petrol and diesel margins, offsetting earlier inventory losses.

State-owned fuel retailers reported a combined profit of Rs 16,184 crore in the first quarter of FY26, more than two-and-a-half times higher than the previous year, according to regulatory filings. Among these, Bharat Petroleum Corporation Ltd (BPCL) stood out, posting a net profit of Rs 6,124 crore, which surpassed Indian Oil Corporation (IOC)'s Rs 5,689 crore and Hindustan Petroleum Corporation Ltd (HPCL)'s Rs 4,371 crore [1].

BPCL's performance was driven by robust refining margins, with a gross refining margin (GRM) of USD 4.88 per barrel, which was significantly higher than IOC's USD 2.15 and HPCL's USD 3.08 [1]. Additionally, BPCL's refinery run rate was at 118% of installed capacity, compared to IOC's 107% and HPCL's 10.9% [1]. This efficiency in refining operations contributed to BPCL's superior performance.

The company also excelled in fuel sales per pump, with a throughput of 153 kilolitres per month, which was higher than IOC's 130 kilolitres per month [1]. This indicates BPCL's strong sales performance and operational efficiency.

The bumper earnings in Q1 were buoyed by a freeze on retail prices, which boosted petrol and diesel marketing margins. According to brokerage ICICI Securities, the retailers earned an estimated Rs 10.3 per litre margin on petrol sales (up from Rs 4.4 a year earlier) and Rs 8.2 per litre on diesel sales (up from Rs 2.5 last year) [1].

Despite a 21% drop in input crude oil prices and a 16-18% reduction in benchmark international fuel rates, the strong marketing margins helped offset inventory losses. IOC alone booked an inventory loss of Rs 6,465 crore in the June quarter, compared to a gain of Rs 3,345 crore in the year-ago period [1]. Adjusted for inventory losses, IOC's GRM would have been USD 6.91 per barrel, up from USD 2.84 a year ago [1].

While the government has announced a Rs 30,000 crore subsidy package to cover cooking gas under-recoveries, the firms continued to bear the burden in Q1. The unpaid LPG subsidy resulted in losses of Rs 3,719 crore for IOC, Rs 2,076 crore for BPCL, and Rs 2,148 crore for HPCL [1].

References:
[1] https://m.economictimes.com/industry/energy/oil-gas/bpcl-outperforms-rival-psus-in-q1-records-industry-best-per-pump-sales/articleshow/123482257.cms