BPCL Q2 Earnings Concall: State-owned Bharat Petroleum Corporation Limited (BPCL) expects LPG under-recoveries to increase to Rs 328 per cylinder in November from Rs 290 per cylinder in the second quarter of FY27. The company also expects a decline in Russian crude oil supplies during November due to commercial considerations, while higher volumes are anticipated from West Asia.
During its Q2 FY27 earnings conference call, BPCL management provided updates on LPG under-recoveries, crude oil procurement, capital expenditure and the progress of its Mozambique upstream project.
The management said the Mozambique project was 47 per cent complete as of September 2026, with gas production expected to commence by mid-2028.
BPCL LPG under-recoveries: Losses may increase in November
BPCL management said LPG under-recoveries declined to Rs 290 per cylinder during the July-September quarter, compared with Rs 507 per cylinder in the April-June quarter.
However, the company expects under-recoveries to increase to Rs 328 per cylinder in November.
LPG under-recoveries represent the difference between the cost incurred by oil marketing companies in supplying cooking gas and the amount recovered through regulated retail selling prices.
BPCL Russian crude oil imports to decline in November
On crude oil procurement, BPCL management said it expects higher crude oil volumes from West Asia during October and November.
Meanwhile, Russian crude oil supplies are expected to decline in November due to commercial reasons.
The management also said BPCL did not receive discounts on Russian oil cargoes during the second quarter of FY27.
The company stated that it continues to receive its full crude oil cargo volumes, although it is facing certain challenges.
BPCL Mozambique project 47% complete; production expected by mid-2028
BPCL management said its Mozambique upstream project was 47 per cent complete as of September 2026, with gas production expected to begin by mid-2028.
The company plans to incur an overall expenditure of approximately USD 4.5 billion on the project, of which USD 2.8 billion has already been spent.
BPCL expects to spend another USD 1.8 billion over the next one to two years.
The management further stated that BPCL has a 10 per cent share in the project’s output during Phase 1.
BPCL FY27 capex target at Rs 25,000 crore
BPCL has set a capital expenditure target of Rs 25,000 crore for FY27.
According to the management, the company spent Rs 13,000 crore during the April-September period, accounting for approximately 52 per cent of its full-year capex target.
BPCL Q2 FY27 results: Net profit falls 22.5% YoY
BPCL reported a 22.5 per cent decline in standalone net profit for the September quarter of FY27, as earnings from operations weakened amid a freeze in retail fuel prices despite rising costs.
BPCL’s standalone net profit declined to Rs 4,993 crore in the July-September quarter from Rs 6,443 crore in the corresponding period last year, according to a company statement.
Revenue from operations increased to Rs 1.58 lakh crore from Rs 1.22 lakh crore in the year-ago period.
However, earnings before interest, taxes, depreciation and amortisation (EBITDA) declined nearly 14 per cent to Rs 9,437 crore from Rs 10,968 crore.
BPCL refining margins rise despite pressure on earnings
India’s second-largest fuel retailer reported a gross refining margin (GRM) of USD 32.53 per barrel during the July-September quarter, compared with USD 10.78 per barrel in the corresponding period last year.
However, the gains from stronger refining margins were offset by losses arising from the five-month freeze on retail fuel price revisions despite an increase in costs.
BPCL also recorded a marketing inventory loss of Rs 330 crore and a foreign exchange fluctuation loss of Rs 397 crore during the quarter.
BPCL consolidated Q2 FY27 results
On a consolidated basis, BPCL’s net profit declined 21.5 per cent year-on-year to Rs 4,863 crore from Rs 6,191 crore.
Consolidated revenue increased 29.8 per cent to Rs 1.58 lakh crore, while EBITDA declined 13.4 per cent to Rs 9,647 crore.
At 12:24 PM on Monday, the oil stock price was Rs 287,65, up 2.02 per cent, from its previous closing, on NSE.
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