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Bharat Petroleum Corporation Ltd

| Quarterly Financial Results Q3 FY 2025-26

BULLISH SENTIMENT

Report Source

⬤23rd Jan 26

Summary : Bharat Petroleum Corporation Limited reported strong financial results for Q3 and 9M FY26, driven by improved GRM, increased sales, and reduced debt, alongside a declared interim dividend.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Cost of Materials Consumed (9M FY26 Standalone): 159,357.49 Cr.
  2. Other Expenses (9M FY26 Standalone): 20,340.18 Cr, including 708.38 Cr foreign exchange loss.
  3. Exceptional Item (9M FY26 Consolidated): 399.91 Cr for BPRL Mozambique project stoppage costs.
  4. Standalone Revenue from Operations (Q3 FY26): 136,623.06 Cr.
  5. Consolidated Revenue from Operations (Q3 FY26): 136,653.12 Cr.
  6. Segment-wise: Downstream Petroleum (major), Exploration & Production of Hydrocarbons (minor).
  7. Standalone Net Worth (Q3 FY26): 96,171.35 Cr.
  8. Consolidated Net Worth (Q3 FY26): 98,018.98 Cr.
  9. Standalone Outstanding Debt (excluding lease liabilities) (Q3 FY26): 5,292.84 Cr.
  10. Consolidated Outstanding Debt (excluding lease liabilities) (Q3 FY26): 36,898.79 Cr.
  11. Both standalone and consolidated results show strong growth in revenue and profit.
  12. Consolidated results include subsidiaries, JVs, and associates, with specific notes on non-reviewed entities and those management decided to exit.

Corporate Overview

  1. India (domestic sales)
  2. Mozambique (E&P project)
  3. Foreign exchange loss impact on other expenses.
  4. Non-compliance with independent director regulation.
  5. Government compensation for LPG under-recoveries.
  6. Refining and Marketing of Petroleum Products.
  7. Exploration and Production of Hydrocarbons.
  8. Factual reporting of strong financial performance and operational achievements.
  9. Domestic Market Sales (Q3 FY26): 14.07 MMT
  10. Domestic Market Sales (9M FY26): 40.32 MMT
  11. Downstream Petroleum
  12. Exploration & Production of Hydrocarbons
  13. Refinery Throughput (Q3 FY26): 10.51 MMT
  14. Refinery Throughput (9M FY26): 30.75 MMT

Risk Factors

  1. Foreign exchange rate fluctuations impact.
  2. Non-compliance with board independence rules.
  3. Operational risks in E&P projects.
  4. Reliance on unaudited JV financial data.

Key Drivers

  1. Strong profit and revenue growth.
  2. Significant reduction in outstanding debt.
  3. Improved Gross Refining Margin (GRM).
  4. Government compensation for LPG under-recoveries.

Auditor’s Report

  1. Limited Review Report; no audit opinion expressed.
  2. Resolution of Force Majeure in Bharat PetroResources Limited (BPRL) Mozambique project, with recommenced interest capitalization and expensed stoppage costs.
  3. Recognition of company's share in joint operations based on latest available unaudited financial statements/billing statements.

Board Commentary

  1. Declared second interim dividend of Rs. 10/- per equity share (100%) for FY 2025-26.
  2. Non-compliance with SEBI Regulation 17(1)(b) on independent directors.
  3. Non-compliance with SEBI Regulation 17(1)(b) regarding independent directors.
  4. Interest cost capitalization recommenced for Mozambique project.

Corporate Governance

  1. Non-compliance with SEBI Regulation 17(1)(b) regarding independent directors.
  2. Audit Committee reviewed and recommended financial results.
  3. Non-compliance with independent director requirements on the board.

Management Discussion & Analysis

Performance Drivers

  1. Improved Average Gross Refining Margin (GRM) to $9.68/barrel.
  2. Increased refinery throughput and domestic market sales.
  3. Government compensation for LPG under-recoveries.
  4. Significant reduction in outstanding debt.

Risk Control Measures

  1. Government approval for LPG under-recoveries compensation.

Critical Risks

  1. Foreign exchange rate fluctuations.
  2. Regulatory compliance regarding board composition.
  3. Operational risks in Exploration & Production projects.