BPCL posted a sharp improvement in performance for Q2FY26, with net profit jumping 169% year-on-year to Rs 6,442.53 crore. This compares with Rs 2,398 crore in the same quarter last year.
The surge was largely driven by stronger gross refining margins (GRMs), which rose to $10.78 per barrel from $4.41 per barrel a year earlier. Higher GRMs reflect how much a refiner earns from converting crude oil into finished products such as petrol, diesel and aviation fuel, and this improvement helped offset the slight decline in throughput volumes.
Revenue from operations increased 3% to Rs 1.21 lakh crore during the quarter. BPCL’s refineries processed 9.82 million tonnes of crude with a capacity utilisation of 111%, compared with 10.28 million tonnes processed in the same period last year.
Domestic sales in the quarter came in at 12.67 million tonnes, registering a modest 2.26% growth over last year’s 12.39 million tonnes. The company had also announced an interim dividend of Rs 7.5 per share, reflecting the improvement in profitability and cash flows.
Also read: Infosys’ Rs 18,000-crore share buyback from tomorrow: What you need to know before tendering your sharesIt should be noted that large institutional investors such as LIC routinely rebalance portfolios, and the reduction in stake does not necessarily reflect a negative view on the company’s long-term prospects. BPCL’s performance will continue to hinge on crude oil price trends, refining spreads and domestic fuel demand, although the high GRMs posted in the quarter are unlikely to be sustained at the same levels