Industry Odisha Bureau, Jul 23: State-owned Bharat Petroleum Corporation Ltd (BPCL) reported a consolidated net loss of Rs 3,962.13 crore for the April-June quarter of FY2026-27, its first quarterly loss in 15 quarters, as elevated crude oil prices and regulated fuel prices eroded marketing margins.
The Central PSU has posted such a heavy loss after the prolonged West Asia crisis sent crude oil prices soaring and forced them to sell petrol, diesel and domestic LPG below cost.
The net loss was Rs 3,962.13 crore in April-June – the first quarter of the current 2026-27 fiscal year – compared with a profit of Rs 6,123.93 crore in the same period a year back and Rs 3,191.49 crore in the preceding January-March quarter, according to a stock exchange filing by the company.
The April-June quarter witnessed sharp volatility in global crude prices, with benchmark oil touching nearly $125 per barrel at the peak of the conflict. Although retail prices of petrol and diesel were later increased by more than Rs 7.50 per litre and domestic LPG prices by Rs 89 per 14.2-kg cylinder, the hikes were not sufficient to offset the higher input costs incurred during the crisis. According to government estimates, OMCs incurred total under-recoveries of Rs 75,000 crore during the Iran crisis.
BPCL and other state-owned fuel retailers – Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Ltd (HPCL) – held petrol and diesel prices steady for two-and-a-half-months despite a more than 50 per cent surge in prices of crude oil – the raw material for making petrol and diesel – after the US and Israel attacked Iran on February 28 and Tehran retaliated.
The company also said unpaid LPG subsidy dues stood at Rs 12,318.52 crore as of March 31, 2026.
According to reports, the company received government compensation of Rs 1,898 crore for losses in the LPG segment during the quarter, helping lift overall revenue despite weaker fuel demand.
Revenue from operations rose to Rs 1.59 lakh crore during the quarter from Rs 1.35 lakh crore a year earlier, increasing more than 23% year-on-year.However, total expenses climbed around 36% to Rs 1.66 lakh crore, driven by a 68.7% surge in raw material costs.
