Bharat Petroleum Corporation Ltd (BPCL) has delivered one of its strongest operational and financial performances in FY2025-26, even as geopolitical tensions, supply disruptions and volatile crude prices tested the global energy market.
Addressing the 73rd Annual General Meeting, Sanjay Khanna, Chairman and Managing Director, BPCL said the company was entering its next phase with greater scale and a sharper focus on energy security, diversification and emerging businesses. "BPCL is not merely adapting to the future of energy. We are shaping it.”
BPCL’s refineries processed a record 41.2 million metric tonnes of crude during the year, operating at 116.6% capacity utilisation. Its gross refining margin stood at $11.74 a barrel, while market sales reached a record 54.2 million metric tonnes.
Consolidated capital expenditure rose to a record Rs. 21,372 crore, while consolidated profit after tax stood at Rs. 25,843 crore.
As BPCL marks 50 years of national service, Khanna attributed the company's performance to operational discipline, flexible crude sourcing and the resilience of BPCL’s workforce.
Project Aspire drives next phase
The company is now accelerating its five-year Project Aspire strategy, built around strengthening refining, marketing and upstream operations while investing in petrochemicals, gas, green energy, non-fuel businesses and digital capabilities.
At Mumbai, BPCL is developing a Rs. 14,000-crore Petro Resid Fluidized Catalytic Cracker project to replace ageing units, improve refinery efficiency and enable greater processing of high-sulphur crude.
The company also commissioned a 200 KTPA De-Aromatized Solvents unit and is developing a renewable-feedstock co-processing facility to produce Sustainable Aviation Fuel.
At Kochi, the refinery expansion will lift capacity from 15.5 million to 17 million tonnes per annum, while the Bina expansion is expected to increase refining capacity from 7.8 million to more than 11 million tonnes per annum and create an integrated petrochemical complex.
A proposed 9-million-tonne refinery-cum-petrochemical complex at Ramayapatnam in Andhra Pradesh is also moving ahead, with pre-project activities underway.
Marketing network expands
BPCL expanded its retail network to 25,323 outlets during FY26, maintaining a 27.3% market share among public-sector oil marketing companies.
The company is increasingly using its retail network for services beyond fuel. BeCafe expanded to 212 outlets, while 11 new Wayside Amenities were commissioned, taking the total to 31.
Its EV fast-charging network crossed 4,500 outlets, positioning BPCL to serve vehicles powered by liquid fuels, gas and electricity.
Bharatgas continued to focus on safety and convenience, with nearly 100% digital booking. The company also launched Bharatgas Lite ZIP, featuring a lightweight 10-kg composite LPG cylinder.
Aviation, industrial and pipeline businesses gain ground
BPCL’s Industrial and Commercial Solutions business recorded sales of 7.2 million metric tonnes. It supplied X-treme Winter Grade Diesel to the Indian Army for high-altitude operations.
The company also acquired a 40% stake in Tiki Tar and Shell India Pvt Ltd to strengthen its presence in specialised bitumen products.
Its aviation business posted record sales of 2.2 million metric tonnes and a 26.5% market share, growing 11.4% against industry growth of 2%.
MAK Lubricants recorded sales of 428 thousand metric tonnes, while launching products for agriculture and data-centre applications.
BPCL also commissioned the 425-km Krishnapatnam-Hyderabad Multiproduct Pipeline, with an annual capacity of 4.4 million tonnes. Separately, its pipeline team restored the flood-damaged Kota-Piyala section of the Mumbai-Manmad-Bijwasan pipeline in 60 days, against a scheduled 105 days.
Upstream push strengthens energy security
Through subsidiary BPRL, BPCL is expanding its upstream portfolio in Brazil and Mozambique.
In Brazil, BPCL acquired the remaining stake in its joint venture, making it a wholly owned subsidiary holding a 40% participating interest in the BM-SEAL-11 ultra-deepwater field, operated by Petrobras.
In Mozambique, the lifting of force majeure has revived progress on a major LNG project. BPCL said the project was about 47% complete, with development accelerating over the past 10 months.
Combined investment in the Brazil and Mozambique upstream projects is approximately $6.5 billion.
BPCL has also established Bharat Petroleum Global Energy Services, a wholly owned Singapore-based trading arm that will strengthen crude procurement and international trading across LPG, naphtha, fuel oil and LNG.
Petrochemicals emerge as major growth engine
BPCL is targeting petrochemicals as a key source of future growth as demand rises across packaging, automobiles, construction, healthcare and electronics.
The Bina petrochemical expansion and Kochi polypropylene project are progressing, while BPCL has launched BePoly and begun phased seed marketing.
The company expects its petrochemical investments to diversify earnings beyond transportation fuels and increase integration across its refining network.
Gas, CBG and green energy scale up
BPCL’s gas business grew strongly, with volumes handled rising 25% to 2.3 million metric tonnes. More than three lakh households were added to its PNG network, taking cumulative coverage to 8.5 lakh households.
CBG blending reached a record 4.2%, well above the mandated 1%.
BPCL commissioned its first municipal solid waste-based CBG plant at Brahmapuram in Kochi, capable of processing 150 tonnes of biodegradable waste daily and producing around 5.6 tonnes of CBG.
Satna in Madhya Pradesh became BPCL’s first 100% CBG district, with its entire CNG and PNG network operating on CBG.
The company also commissioned an integrated 1G and 2G ethanol biorefinery at Bargarh, Odisha.
On renewable energy, BPCL commissioned a 71-MW solar project at Prayagraj, taking installed renewable capacity to 251 MW. Around 100 MW of wind projects are under implementation, with another 100 MW wind project secured in Madhya Pradesh.
At Bina, BPCL is preparing a 5,000-tonne-per-annum green hydrogen project, scheduled to begin supply in 2028. The company said the project could reduce carbon emissions by around 57,000 tonnes annually.
At Kochi, BPCL commissioned South India’s first green hydrogen refuelling station for mobility.
NeuEN Green Energy, BPCL’s joint venture with Sembcorp, has secured a contract to supply 10 KTPA of green hydrogen to Numaligarh Refinery at Rs. 279 per kg, described by BPCL as the lowest-ever tariff discovered for green hydrogen in the country.
BPCL plans to establish 26 CBG plants over the next two years, including 19 projects already approved under its own investment programme, with total capacity of about 50,000 tonnes per annum.
Digital push and indigenous innovation
BPCL is expanding its digital ecosystem through platforms including HelloBPCL, SmartFleet and UFill. HelloBPCL serves more than one crore customers, while UFill is available at more than 17,000 retail outlets.
Its AI and machine-learning-enabled IRIS platform provides real-time visibility across retail outlets, terminals and LPG plants.
Research and development remained another focus area. BPCL filed 22 patent applications, received seven intellectual property rights and invested Rs. 296 crore in R&D and innovation during FY26.
Projects include a 10-KL-per-day Bio-IBA demonstration plant at Bargarh and a 15-tonne-per-day CO₂ capture and utilisation demonstration unit at Bina.
BPCL is also expanding its collaborative innovation efforts through the MC² Foundation, bringing together industry, academia and start-ups.
People and social impact
BPCL inducted more than 682 officers in FY26 and another 672 in the first quarter of FY27, strengthening its leadership pipeline.
Its people-centric approach also earned recognition, with BPCL featuring among the Forbes World’s Best Employers 2025 and ranking 19th among Indian multinational companies.
Through its Silent Voices initiative, more than 1,500 speech- and hearing-impaired individuals are working in customer-facing and operational roles at BPCL retail outlets.
The BPCL Foundation, established last year, is focusing on education, healthcare, sports, skills and livelihoods. Initiatives include Space Labs in 75 Eklavya Model Residential Schools, support for a 50-bed high-altitude charitable hospital at Kedarnath and assistance for an international cricket stadium in Gorakhpur.
Q1 FY27 hit by crude shock
Looking ahead, Khanna acknowledged a difficult start to FY27. BPCL reported a loss of Rs. 3,962 crore in the first quarter, citing elevated crude prices linked to geopolitical tensions in the Middle East and compressed marketing margins.
“While short-term volatility will remain a feature of our industry, it reinforces the need for an integrated, diversified and resilient business model.”
The company said its priorities remain strengthening core businesses, improving customer-centricity, executing major projects with capital discipline and scaling petrochemicals, gas, CBG, renewable energy and digital businesses.
Khanna said BPCL would enter its next 50 years focused on energy security, investment discipline and diversification.
“As we enter the next fifty years, we will remain reliable in our core, bold in our choices, disciplined in our investments and humane in our purpose. We will continue to energise lives, strengthen national energy security and advance India’s journey towards an Atmanirbhar Bharat.”
