BPCL's Q1 Profit Slips into Loss Despite Strong Revenue Growth
Bharat Petroleum's quarterly revenue jumped 23% year-on-year, but profit swung to a loss, highlighting margin pressure in the oil sector.
BPCL reported a sharp 23% rise in Q1 FY27 revenue, but profitability collapsed, turning a profit into a loss. The net profit margin fell to -1.2%.
Bharat Petroleum Corporation (BPCL) delivered a quarter of stark contrasts. While revenue grew robustly, profit collapsed into negative territory, signaling severe pressure on profitability. The oil marketing giant's top-line strength was overshadowed by a net loss, marking a significant shift from the consistent profits of the past year.
The first quarter of FY27 saw revenue surge to ₹1,59,527 crore, a 23.1% increase from the same period last year and an 18.2% sequential rise. However, profit after tax (PAT) swung to a loss of ₹1,873 crore, a dramatic reversal from a profit of ₹6,839 crore in Q1 FY26. Consequently, the net profit margin plummeted to -1.2%, down 650 basis points year-on-year.
A look at the last five quarters reveals the sudden nature of this downturn.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Quarter ended June 2026 | Quarter ended March 2026 | Quarter ended June 2025 |
| Revenue (₹ Cr) | 159,527.05YoY +23% | 134,947.90 | 129,614.69 |
| Profit (₹ Cr) | -1,872.7YoY -127% | 5,624.54 | 6,839.02 |
| Net Profit Margin (%) | -1.2YoY -123% | 4.2 | 5.3 |
Despite the quarterly loss, the trailing twelve-month (TTM) profit stands at ₹17,132 crore, with a TTM net profit margin of 3.1%. This indicates the business retains its earning capacity over a longer horizon, though the latest quarter poses a challenge.
Key Points
- The company maintains a strong return profile, with a Return on Equity (ROE) of 28.5% and a Return on Capital Employed (ROCE) of 27.1%.
- Its balance sheet shows moderate leverage with a debt-to-equity ratio of 0.45.
- The stock trades at a significant discount to its industry, with a price-to-earnings (P/E) ratio of 4.6 compared to the industry average of 17.1.
BPCL's share price has delivered a solid 81% return over the past three years, but the immediate focus will be on whether the company can restore its profitability in the coming quarters to match its impressive revenue momentum.
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· BPCL
(BSE)
ISIN: INE029A01011
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