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.