Large capex a key concern for BPCL amid crude oil price uncertainty

State-run refiner Bharat Petroleum Corporation (BPCL) reported operating and net profits below expectations in the first quarter (Q1) of 2025-26 (FY26), weighed down by lower gross refining margins (GRMs) of $4.9 per barrel. However, blended marketing margins at ₹8.3 per litre were 75 per cent higher year-on-year (Y-o-Y). Refining throughput and marketing volumes were in line with estimates.

 

The Union Cabinet has approved ₹30,000 crore in liquefied petroleum gas (LPG) compensation for oil marketing companies, to be paid in 12 tranches over an undisclosed time frame. BPCL’s share will be roughly 25 per cent, or around ₹7,500 crore. Analysts conservatively