BPCL margin slips sequentially, but Q4 profit rises 28% YoY
Costs grew faster than revenue sequentially, while lower interest and other income did not prevent a year-on-year profit increase.
Filed 19 May 2026, 18:25 IST · after market close · Bharat Petroleum Corporation Ltd (BPCL)
Key takeaways
- Consolidated Q4FY26 net profit rose 28.07% year-on-year to Rs 5,624.54 cr despite a higher 28.24% tax rate.
- Operating margin improved 1.53 percentage points year-on-year but fell 1.33 percentage points sequentially as expenses grew 1.19% while revenue declined 0.28%.
- BPCL's 8.49% operating margin was 6.10 percentage points below the 14.59% median for 15 Energy peers that had reported.
Price around the results
Year-on-year profit growth masks a sequential slowdown
BPCL's consolidated revenue grew 6.72% year-on-year, while expenses rose 4.96%, lifting operating profit 30.25%. Profit before tax increased 32.92% and net profit rose 28.07%, even as other income fell 53.15% and the tax rate increased 2.72 percentage points. Sequentially, revenue declined 0.28%, operating profit fell 13.78% and net profit dropped 21.76%.
Q4 margin fell as costs outpaced revenue
Operating margin narrowed 1.33 percentage points sequentially because expenses grew 1.19% while revenue contracted 0.28%. Interest expense also rose 7.25% sequentially, and the tax rate increased 2.06 percentage points, adding to the pressure below operating profit. Year-on-year, lower interest expense, down 23.24%, helped support profit growth; other income contributed 6.34% of pre-tax profit, so it was not the main profit driver.
Margin lost momentum after three quarterly increases
The operating margin had risen from 5.90% in Q3FY25 to 8.60% in Q1FY26, 9.30% in Q2FY26 and 9.82% in Q3FY26 before slipping to 8.49% in Q4FY26. BPCL's margin was 6.10 percentage points below the 14.59% median of 15 reported Energy peers, ranking fifth from the bottom.
Initial stock reaction was modestly above its usual results move
The stock rose 2.55% on the first session after the results and was up 7.23% after five sessions. Across its previous eight results, BPCL rose after five and fell after three, with a median absolute move of 2.29%, making the day-one reaction slightly larger than its usual move and the five-day response more pronounced.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,18,701 cr | ₹1,19,029 cr | -0.28% | +6.72% |
| Other income | ₹497 cr | ₹687 cr | -27.61% | -53.15% |
| Expenses | ₹1,08,624 cr | ₹1,07,343 cr | +1.19% | +4.96% |
| Operating profit | ₹10,076 cr | ₹11,687 cr | -13.78% | +30.25% |
| Operating margin (%) | 8.49% | 9.82% | — | — |
| Interest | ₹705 cr | ₹657 cr | +7.25% | -23.24% |
| Depreciation | ₹2,031 cr | ₹1,979 cr | +2.63% | +2.45% |
| Profit before tax | ₹7,838 cr | ₹9,737 cr | -19.51% | +32.92% |
| Tax | ₹2,213 cr | ₹2,549 cr | -13.17% | +47.07% |
| Net profit | ₹5,625 cr | ₹7,188 cr | -21.76% | +28.07% |
| EPS (₹) | ₹13.16 | ₹16.82 | -21.76% | +28.02% |
Operating margin of 8.49% compares with a Energy sector median of 14.59% across 15 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +2.55% | +2.37% |
| Next session | +3.47% | — |
| 5 sessions | +7.23% | +6.00% |
| 15 sessions | -0.03% | — |
| 30 sessions | +7.58% | — |
Volume on the results session was 0.89× its 20-day average.
What to watch
- Whether operating margin recovers from 8.49% after Q3FY26's 9.82%.
- Whether expenses remain below revenue growth after rising 1.19% sequentially against a 0.28% revenue decline.
- Whether interest expense stays near Rs 705.08 cr and other income near Rs 497.06 cr.