BPCL Q2 profit falls 22.5% to ₹4,993 cr as fuel price freeze hits earnings

State-owned Bharat Petroleum Corporation Ltd (BPCL) reported a 22.5% decline in net profit for the September quarter, attributed to a retail price freeze that weakened earnings despite rising costs. The company's standalone net profit fell to ₹4,993 crore in the second quarter of fiscal 2027, down from ₹6,443 crore a year earlier, according to a company statement.

Revenue from operations increased to ₹1.58 trillion, up from ₹1.22 trillion, while Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) decreased nearly 14% to ₹9,437 crore from ₹10,968 crore. BPCL's gross refining margin improved to $32.53 per barrel for the quarter, compared to $10.78 a year ago. However, these gains were offset by losses due to the five-month freeze on retail price revisions amid rising costs.

BPCL also recorded a ₹330 crore marketing inventory loss and an additional ₹397 crore loss from foreign exchange fluctuations. On a consolidated basis, net profit dropped 21.5% to ₹4,863 crore from ₹6,191 crore, while revenue surged 29.8% to ₹1.58 lakh crore. Consolidated EBITDA fell 13.4% to ₹9,647 crore.

The disparity between revenue growth and declining earnings underscores the pressure on profitability, even as BPCL increased investments in refining, gas distribution, and alternative fuels.