šŸ’° Financial Performance

Revenue Growth by Segment

Total operating income decreased by 1.68% YoY from INR 449,149 Cr in FY24 to INR 441,595 Cr in FY25. Gas supply segment grew 3% YoY with 1,829 TMT supplied, while City Gas Distribution (CGD) sales grew 80% YoY to 150 TMT.

Geographic Revenue Split

Not disclosed in available documents; however, the company operates 24,197 retail outlets and 6,267 LPG distributors across India, indicating a nationwide domestic revenue base.

Profitability Margins

Gross Refining Margin (GRM) declined 51.7% from $14.14/bbl in FY24 to $6.82/bbl in FY25. PAT fell 50.3% from INR 26,859 Cr in FY24 to INR 13,337 Cr in FY25 due to lower crack spreads and reduced Russian crude discounts.

EBITDA Margin

EBITDA (PBILDT) margin declined from 10.07% in FY24 (INR 45,231 Cr) to 6.05% in FY25 (INR 26,724 Cr), representing a 40.9% YoY drop in core profitability caused by inventory losses and LPG under-recoveries.

Capital Expenditure

BPCL recorded its highest-ever capital expenditure of INR 16,967 Cr in FY25. Planned capex is INR 16,000-18,000 Cr annually for FY26 and FY27, with a major outflow of INR 33,000-35,000 Cr expected during FY28-29 for refinery expansions.

Credit Rating & Borrowing

Maintains a 'AAA' stable rating with 'Superior' liquidity. Borrowing costs are low due to Maharatna status and GoI support; however, interest coverage ratio moderated from 11.12x in FY24 to 7.44x in FY25.

āš™ļø Operational Drivers

Raw Materials

Crude oil is the primary raw material, with procurement prices averaging $79/bbl in FY25 and dropping to $67/bbl by June 2025. Russian crude discounts narrowed from $8/bbl in FY24 to $3/bbl in FY25.

Import Sources

BPCL imports nearly 80% of its crude oil requirements from international markets, including Russia and the Middle East (ADNOC agreement for LNG starting 2025).

Key Suppliers

Suppliers include ADNOC Trading (for medium-term LNG) and Russian entities for discounted crude; internal sourcing includes 2.64 MMTOE from subsidiary BPRL's upstream blocks.

Capacity Expansion

Current refining capacity is 35.30 MMTPA (14% of India's total). The Bina refinery expansion project is underway (14% progress) to increase capacity, alongside a target of 10 GW renewable energy by 2035.

Raw Material Costs

Raw material costs are highly volatile; crude procurement averaged $83/bbl in FY24 and $79/bbl in FY25. A narrowing of Russian crude discounts by $5/bbl significantly increased input costs in FY25.

Manufacturing Efficiency

Achieved industry-leading capacity utilization of 115% in FY25, with the highest-ever crude throughput of 40.51 MMTPA and a distillate yield of 84.3%.

Logistics & Distribution

Distribution is managed through 24,197 retail outlets and 6,269 LPG distributors. Proximity of refineries to the coast provides logistic benefits and reduces transportation costs for crude procurement.

šŸ“ˆ Strategic Growth

Expected Growth Rate

3%

Growth Strategy

Growth will be driven by the Bina refinery expansion, a INR 2,283 Cr investment in CGD networks, and a strategic shift toward green energy with a 10 GW renewable target by 2035. The company is also expanding its gas portfolio through a medium-term LNG supply agreement with ADNOC starting 2025.

Products & Services

Motor Spirit (Petrol), High-Speed Diesel, Liquefied Petroleum Gas (LPG), Aviation Turbine Fuel (ATF), and Natural Gas.

Brand Portfolio

Bharat Petroleum, BPCL SBI Card, and MAK Lubricants.

New Products/Services

Expansion into Petrochemicals via the Bina project and Green Hydrogen/Renewables (10 GW target) are expected to diversify future revenue streams.

Market Expansion

Targeting 10 GW of renewable energy by 2035 and expanding the CGD network with a planned investment of INR 1,360 Cr in FY26.

Market Share & Ranking

2nd largest OMC in India; 4th largest refiner (14% capacity); 25% market share in petroleum products; 27.49% market share in LPG.

Strategic Alliances

Joint ventures include Petronet LNG Limited (12.5% stake), BPCL-KIAL Fuel Farm (74% stake), and a medium-term supply agreement with ADNOC Trading.

šŸŒ External Factors

Industry Trends

The industry is shifting toward low-carbon energy and petrochemical integration. OMCs are currently facing lower refining margins (GRM fell to $4.88/bbl in Q1 FY26) but benefit from stable retail prices and declining LPG under-recoveries.

Competitive Landscape

Competes with other PSUs like IOCL and HPCL, and private players like Reliance Industries (RIL) and Nayara Energy.

Competitive Moat

Moat is built on 'Maharatna' status, 52.98% GoI ownership, and an entrenched distribution network of 24,197 outlets. This infrastructure is difficult to replicate and ensures a 25% market share.

Macro Economic Sensitivity

Highly sensitive to global crude oil prices and GDP growth, as petroleum demand correlates with industrial activity. A $1/bbl change in GRM significantly impacts consolidated EBITDA.

Consumer Behavior

Shift toward LPG for domestic fuel (8.5 crore customers) and increasing demand for natural gas in industrial and CGD segments (80% growth in CGD sales).

Geopolitical Risks

Ongoing tensions in the Middle East and Russia impact crude supply and pricing; Russian crude discounts narrowed by 62.5% in FY25, hurting profitability.

āš–ļø Regulatory & Governance

Industry Regulations

Operations must comply with Bharat Stage VI (BS-VI) emission norms and GoI pricing controls on sensitive products like LPG and retail fuels.

Environmental Compliance

Investing in 10 GW renewable capacity by 2035 and has solarized 12,000 outlets. Oil refining is inherently high-risk for spills, managed via a dedicated remediation system.

Taxation Policy Impact

Subject to windfall taxes, duties, and cess imposed by GoI, which can significantly impact net accruals during periods of high crude prices.

Legal Contingencies

Not disclosed in available documents; however, the company has a dedicated investor grievance mechanism with 99.82% of complaints resolved within two days.

āš ļø Risk Analysis

Key Uncertainties

Volatility in crack spreads and crude prices (impacted FY25 PAT by 50.3%); potential for GoI to increase fiscal levies or dividends, impacting liquidity.

Geographic Concentration Risk

Primarily concentrated in India for marketing; upstream subsidiary BPRL has 46% of its 19,824 sq. km acreage in offshore areas across 6 countries.

Third Party Dependencies

80% dependency on global crude suppliers; 12.5% dependency on Petronet LNG for gas infrastructure.

Technology Obsolescence Risk

Mitigated by digital acceleration and a INR 16,967 Cr capex plan focusing on modernization and low-carbon energy transitions.

Credit & Counterparty Risk

Strong credit quality with INR 14,139 Cr in cash and liquid investments, including GoI oil bonds, providing a buffer against counterparty risks.