BPCL Q1FY26 results: Net profit surges 141% to ₹6,839 crore, EBITDA up 68% YoY, operating margin at 6.32%. Govt approves ₹30,000 crore LPG subsidy for oil PSUs.

BPCL Q1FY26 Results: Profit Triples as Margins Expand, LPG Subsidy Announced

Bharat Petroleum Corporation Limited (BPCL), one of India’s leading state-owned oil marketing companies and a Maharatna PSU, delivered a blockbuster performance for the first quarter of FY26, with profits nearly tripling year-on-year.

The consolidated net profit for April–June 2025 surged 140.67% to ₹6,839.02 crore, compared to ₹2,841.55 crore in the same quarter last year. This strong growth was supported by higher operating efficiency, controlled expenses, and robust refining margins.

Q1FY26 Key Financial Highlights

• Net Profit: ₹6,839.02 crore (up 140.67% YoY)
• Revenue from Operations: ₹1,29,614.69 crore (up 1% YoY)
• Total Expenses: ₹1,22,583.43 crore (down 2% YoY)
• EBITDA: ₹10,427.66 crore (up 68% YoY)
• Operating Margin: 6.32% (vs. 2.68% YoY and 4.09% QoQ)

Revenue Growth and Expense Control

While revenue growth was modest at 1% YoY, BPCL’s strong profit growth came from effective cost management and higher gross refining margins (GRMs). Total expenses declined by 2% YoY, easing pressure on the bottom line despite volatile crude oil prices.

Operational Performance

BPCL’s EBITDA rose 68% YoY to ₹10,427.66 crore, reflecting improved operational efficiency. The operating margin of 6.32% in Q1FY26 was a significant improvement over both last year’s 2.68% and the previous quarter’s 4.09%.

Government LPG Subsidy Boost

In a major policy move, the Cabinet approved ₹30,000 crore LPG subsidy for state-run oil companies — BPCL, Indian Oil Corporation (IOC), and Hindustan Petroleum Corporation Limited (HPCL).

The subsidy aims to compensate oil PSUs for losses incurred from selling LPG cylinders at below cost for the past 15 months. The amount will be disbursed in 12 tranches, improving cash flows for BPCL in the coming quarters.

BPCL Share Price Trend

• Pre-Results Close (Aug 13, 2025): ₹322.80 (-0.25%)
• 6-Month Gain: +26%
• YTD Gain: +9%
• 5-Year Return: +53%

The strong quarterly numbers, combined with the government subsidy, are expected to support investor sentiment in the medium term.

Industry Outlook

The Indian oil and gas sector remains sensitive to:

• Crude Oil Price Volatility
• Global Geopolitical Risks
• Government Pricing Policies
• Energy Transition Trends

With refining margins improving and government support for LPG pricing, BPCL is better positioned to sustain earnings in FY26.

Investor Takeaways

• Profitability Surge: Q1FY26 marks BPCL’s best quarterly profit growth in years.
• Margin Expansion: Operating margin has more than doubled YoY.
• Policy Support: ₹30,000 crore LPG subsidy will strengthen balance sheets.
• Stock Outlook: Technicals indicate medium-term bullish sentiment, but crude price swings remain a key risk factor.