BPCL Stock Up, Profits Down: Q4 Net Beats Estimates; FY25 Earnings Halved

Bharat Petroleum Corporation today surged as much as 3.4% on the bourses, despite the company reported an over 8% on-year fall in consolidated net profit for the March quarter. The oil market company, however, beat the Street’s expectations of a much steeper fall. However, on a sequential front, BPCL saw its net grow over 15% with an improvement in operating margin.

Now step back to view the full financial year (FY25), and the alarming truth emerges—BPCL’s consolidated net profit has collapsed by more than a half, whereas its revenue saw a mere 1.2% decline during the period. Its standalone gross refining margins for FY25 came in at $6.82 per barrel against $14.14 per barrel, excluding special additional excise duty, and road and infrastructure cess.

The company had a net negative buffer of Rs 10,446.38 crore at the end of FY25 due to a direction by the Ministry of Petroleum and Natural Gas that mandated OMCs to retain the difference between the market determined price of LPG cylinders, if less, and its effective cost to customer. Pursuant to the order, the state-owned OMC didn’t recognise the revenue from sale of LPG up to the said extent.

While a 3% rise in input costs for the quarter under review weighed on Bharat Petroleum’s earnings, it was an over 6% on-year fall in revenue from operations which actually dented the earnings of the company. However, it witnessed a slight on-year improvement in its refinery throughput and market sales for the quarter to 10.58 million tonnes and 13.42 million tonnes, respectively.

The company also witnessed some cash outflow in FY25 as its net cash position at the end of March 2025 was Rs 557.93 crore on a consolidated basis, down from Rs 2,300.74 crore a year ago.

The oil refiner also recommended a final dividend of Rs 5 per share, in addition to the interim dividend of Rs 5 per share already paid during the year.

Today, the stock extended its gains from the last two sessions and is currently up 38% from its 52-week low, which it touched this year in March. However, it is down over 14% from its 52-week high mark.