Bharat Petroleum Corporation Ltd (BPCL) reported a 72% decline in net profit for Q2 FY2024-25, with earnings dropping to ₹2,297.23 crore from ₹8,243.55 crore in the same quarter last year. This significant decrease in profit is attributed to shrinking refining and marketing margins as well as a reduction in product cracks. Sequentially, BPCL’s profit also fell from ₹2,841.55 crore reported in Q1 of the fiscal year, the company said in a stock exchange filing.
BPCL, along with other state-owned fuel retailers such as Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Ltd (HPCL), previously benefited from a price freeze on petrol and diesel to recover losses from the previous year. However, the ₹2 per litre price cut on petrol and diesel before general elections, combined with stable crude oil prices and declining product margins, contributed to the profit slump.
While revenue from operations remained largely steady at ₹1.17 lakh crore, BPCL faced narrowed “cracks” — the difference between crude oil cost and final product prices — which have declined from the highs of 2022-23. The company’s profitability was further impacted by a global environment of lower refining margins and reduced demand-driven price support.
