BPCL returns to profit, but margin remains below sector median
Sequential recovery came from a sharper fall in expenses than revenue, while year-on-year profit was pressured by faster cost growth and lower other income.
Filed 23 Oct 2026, 19:11 IST · after market close · Bharat Petroleum Corporation Ltd (BPCL)
Key takeaways
- Consolidated net profit fell 21.46% year on year to Rs 4,863.05 cr as expenses grew 47.19%, faster than revenue at 42.05%.
- Operating margin recovered 8.7 percentage points sequentially to 6.02% after the Q1FY27 loss, as expenses fell 9.8% while revenue declined 1.45%.
- The stock rose 3.00% after the results, above its 2.29% median post-results move despite an evenly split history of four gains and four declines.
Price around the results
Year-on-year profit fell as costs outpaced revenue
BPCL's consolidated revenue rose 42.05% year on year, but expenses increased faster at 47.19%, reducing operating profit by 8.08% and operating margin by 3.28 percentage points to 6.02%. Higher interest costs, up 18.94%, added to the pressure on pre-tax profit, which declined 21.39%. Other income fell 50.93%, so it provided less support than a year earlier.
Sequential recovery came from expense control
Revenue declined 1.45% sequentially, but expenses fell 9.8%, producing an 8.7 percentage-point recovery in operating margin from -2.68% to 6.02%. The improvement came despite interest costs rising 58.1% to Rs 991.09 cr. The tax rate fell 15.89 percentage points to 25.87%, which also supported the return to reported net profit of Rs 4,863.05 cr.
Margin recovered, but remains below recent peaks and peers
The margin had risen to 9.82% in Q3FY26 before falling to 8.49% in Q4FY26 and -2.68% in Q1FY27; the current quarter marks a recovery but remains below the FY26 peak. BPCL's 6.02% operating margin was 9.55 percentage points below the 15.57% median for the seven Energy peers that had reported, placing it second from the bottom. Other income contributed 10.28% of pre-tax profit, making earnings quality an important consideration.
The market reaction was firmer than BPCL's usual post-result move
The stock gained 3.00% on the reaction date, with a 2.32% relative gain and volume at 1.5 times the reference level. That move was above the stock's 2.29% median absolute reaction over its last eight results. The prior record was mixed, with four rises and four falls.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,49,080 cr | ₹1,51,277 cr | -1.45% | +42.05% |
| Other income | ₹675 cr | ₹3,535 cr | -80.91% | -50.93% |
| Expenses | ₹1,40,108 cr | ₹1,55,332 cr | -9.80% | +47.19% |
| Operating profit | ₹8,973 cr | ₹-4,055 cr | — | -8.08% |
| Operating margin (%) | 6.02% | -2.68% | — | — |
| Interest | ₹991 cr | ₹627 cr | +58.10% | +18.94% |
| Depreciation | ₹2,097 cr | ₹2,069 cr | +1.33% | +7.07% |
| Profit before tax | ₹6,560 cr | ₹-3,216 cr | — | -21.39% |
| Tax | ₹1,697 cr | ₹-1,343 cr | — | -21.20% |
| Net profit | ₹4,863 cr | ₹-1,873 cr | — | -21.46% |
| EPS (₹) | ₹11.38 | ₹-4.38 | — | -21.46% |
Operating margin of 6.02% compares with a Energy sector median of 15.57% across 7 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +3.00% | +2.32% |
Volume on the results session was 1.50× its 20-day average.
What to watch
- Whether operating margin holds above the current 6.02% after recovering from -2.68% in Q1FY27.
- Whether interest costs moderate after rising 58.1% sequentially to Rs 991.09 cr.
- Whether other income remains near its current 10.28% share of pre-tax profit.