BPCL Q4 Profit Falls 24% Amid LPG Losses
OIL & GAS

BPCL Q4 Profit Falls 24% Amid LPG Losses

Bharat Petroleum Corporation Ltd (BPCL) reported a 24% drop in net profit for the quarter ended March 2025, as the company absorbed subsidised domestic LPG losses and faced lower refining margins.

The state-run refiner posted a standalone net profit of Rs 3.21 billion in the January–March quarter, compared with Rs 4.22 billion in the same period last year. On a sequential basis, profit declined 31% from Rs 4.65 billion in Q3 FY25.

BPCL and other state-owned oil marketing companies (OMCs) sold domestic LPG at prices below cost throughout FY25 without any government compensation. In its stock exchange filing, BPCL disclosed that it incurred a loss of Rs 3.22 billion in Q4 and Rs 104.46 billion over the full fiscal year due to under-recoveries on domestic LPG sales.

The government hiked LPG prices by Rs 50 per 14.2-kg cylinder earlier this month to partially offset the loss, but domestic LPG continues to be sold at a deficit. To create fiscal headroom, the Centre also raised excise duty on petrol and diesel by Rs 2 per litre, aiming to generate approximately Rs 320 billion in additional revenue—part of which may be used to fund LPG subsidies.

BPCL’s gross refining margin (GRM) plunged to USD 6.82 per barrel in FY25, down from USD 14.14 the previous year, reflecting weakened profitability from converting crude oil into fuels.

Revenue from operations dipped by 4% to Rs 1.26 trillion in Q4. For the entire FY25, BPCL’s revenue stood at Rs 5 trillion, while net profit halved to Rs 13.28 billion, down sharply from the record Rs 26.67 billion reported in FY24. Last year’s bumper profits had stemmed from holding retail petrol and diesel prices steady despite falling global crude costs.

BPCL’s refinery throughput in Q4 rose slightly to 10.58 million tonnes, from 10.36 million tonnes in the same quarter last year. For FY25, throughput reached 40.51 million tonnes, up from 39.93 million tonnes in FY24.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q4 was Rs 77.65 billion, a modest rise of 2.5% year-on-year. Market sales also increased, growing 1.82% in Q4 to 13.42 million tonnes and 2.66% in FY25 to 52.40 million tonnes.

The company’s board has declared a final dividend of Rs 5 per equity share, in addition to the Rs 5 interim dividend paid earlier in FY25.

Bharat Petroleum Corporation Ltd (BPCL) reported a 24% drop in net profit for the quarter ended March 2025, as the company absorbed subsidised domestic LPG losses and faced lower refining margins. The state-run refiner posted a standalone net profit of Rs 3.21 billion in the January–March quarter, compared with Rs 4.22 billion in the same period last year. On a sequential basis, profit declined 31% from Rs 4.65 billion in Q3 FY25. BPCL and other state-owned oil marketing companies (OMCs) sold domestic LPG at prices below cost throughout FY25 without any government compensation. In its stock exchange filing, BPCL disclosed that it incurred a loss of Rs 3.22 billion in Q4 and Rs 104.46 billion over the full fiscal year due to under-recoveries on domestic LPG sales. The government hiked LPG prices by Rs 50 per 14.2-kg cylinder earlier this month to partially offset the loss, but domestic LPG continues to be sold at a deficit. To create fiscal headroom, the Centre also raised excise duty on petrol and diesel by Rs 2 per litre, aiming to generate approximately Rs 320 billion in additional revenue—part of which may be used to fund LPG subsidies. BPCL’s gross refining margin (GRM) plunged to USD 6.82 per barrel in FY25, down from USD 14.14 the previous year, reflecting weakened profitability from converting crude oil into fuels. Revenue from operations dipped by 4% to Rs 1.26 trillion in Q4. For the entire FY25, BPCL’s revenue stood at Rs 5 trillion, while net profit halved to Rs 13.28 billion, down sharply from the record Rs 26.67 billion reported in FY24. Last year’s bumper profits had stemmed from holding retail petrol and diesel prices steady despite falling global crude costs. BPCL’s refinery throughput in Q4 rose slightly to 10.58 million tonnes, from 10.36 million tonnes in the same quarter last year. For FY25, throughput reached 40.51 million tonnes, up from 39.93 million tonnes in FY24. Earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q4 was Rs 77.65 billion, a modest rise of 2.5% year-on-year. Market sales also increased, growing 1.82% in Q4 to 13.42 million tonnes and 2.66% in FY25 to 52.40 million tonnes. The company’s board has declared a final dividend of Rs 5 per equity share, in addition to the Rs 5 interim dividend paid earlier in FY25.

Next Story
Infrastructure Energy

KEC Secures Rs 10, 380 Mn Substation Order in Saudi Arabia

KEC International Ltd., a global infrastructure EPC major, and an RPG Group company, has secured a new order worth Rs 10,380 million for the Design, Supply and Installation of a 380 kV GIS Substation in Saudi Arabia.Vimal Kejriwal, MD & CEO, KEC International Ltd., commented, “We are delighted with the successive order wins in our T&D business. In a landmark achievement, we have secured our largest ever substation order. This prestigious order in the Middle East has widened our portfolio and strengthened our presence in the region. With this strategic win, our year-to-date or..

Next Story
Infrastructure Urban

Central Bank of India executes first fully digital SCF deal on PSB Xchange

In a major advancement for India’s banking sector, Central Bank of India (CBI) has successfully completed the country’s first fully digital supply chain finance (SCF) transaction on PSB Xchange—a unified multi-lender platform launched by PSB Alliance. PSB Xchange is designed to connect public and private sector banks, NBFCs, and fintechs with corporates and their channel partners to facilitate supply chain finance and small business loans. The transaction marks the first time a fintech-originated corporate lead has been seamlessly processed through the PSB Xchange ecosystem. The lead fl..

Next Story
Infrastructure Energy

Atlanta Electricals secures Rs 1,835 Mn transformer order from BNC Power

Atlanta Electricals Limited (“Atlanta”) has secured an order worth Rs 1,835 million from BNC Power Projects Ltd for the supply of extra high voltage (EHV) transformers and a bus reactor for its Pugal site. The contract includes a mix of 315 MVA, 400 KV and 100 MVA, 132 KV transformers along with a 400 KV bus reactor. The project scope encompasses design, manufacturing, testing, and supply to the project site. Deliveries will be sequenced following engineering and drawing approvals, offering multi-quarter execution visibility and ensuring a steady production run-rate. The order will be ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?