BPCL Q2 Results, October 23, 2026: Profit Down 22.5%, GRM Triples to $32.5

BPCL Q2 results came out late on October 23, 2026, and they read like two different businesses pulling in opposite directions. Standalone net profit for the July-September quarter was ₹4,993 crore, down 22.5% from ₹6,443 crore a year ago. That sounds weak until you look at the June quarter, when Bharat Petroleum reported a standalone loss of ₹3,962 crore. So the company is back in the black, but the year so far is still a long way behind last year. All figures here are standalone unless we say otherwise, and they come from BPCL’s board meeting outcome and financial results filed with NSE and its investor handout for the quarter.

BPCL Q2 results: the numbers that matter

• Revenue from operations: ₹1,57,779 crore, up 29.8% from ₹1,21,571 crore in Q2 FY26, and roughly flat against ₹1,59,479 crore in Q1 FY27.
• Net profit: ₹4,993 crore, down 22.5% year-on-year, against a ₹3,962 crore loss in the previous quarter.
• Profit before tax: ₹6,686 crore, versus ₹8,596 crore a year earlier.
• Gross refining margin (GRM): $32.53 a barrel, up from $10.78 in the same quarter last year.
• Refinery throughput: 10.41 million tonnes, up 6% from 9.82 million tonnes.
• Total product sales: 14.06 million tonnes, up 7.9% from 13.03 million tonnes.

On a consolidated basis, net profit was ₹4,863 crore, down 21.5% from ₹6,191 crore in Q2 FY26.

Refining carried the quarter

The refining side had a very good three months. A GRM of $32.53 a barrel is about three times what BPCL earned a year ago, and its refineries ran harder too. Bina was the standout, with throughput rising to 2.12 million tonnes from 1.36 million tonnes. Mumbai and Kochi were slightly lower. One caveat from the handout: these GRMs are before the special additional excise duty and road and infrastructure cess that have applied since March 27, 2026, so the margin BPCL actually keeps is lower than the headline figure.

Marketing is where the pain sits

The company says it plainly in its notes. Lower profit for April-September came mainly from suppressed marketing margins on certain petroleum products, partly offset by higher refining margins. In plain terms, BPCL is not passing its full costs on at the pump and on some products.

LPG is the clearest example. BPCL’s cumulative negative buffer on LPG, the gap between what it can charge and its effective cost that it has not booked as revenue, stood at ₹17,334 crore on September 30, 2026. That is up from ₹12,319 crore at the end of March. The government has approved ₹7,594 crore of compensation for past LPG under-recoveries, paid in 12 monthly instalments, and BPCL booked ₹3,797 crore of that in the first half. That helps, but the buffer is still growing faster than the payouts.

The quarter also carried a ₹330 crore marketing inventory loss, against a ₹895 crore gain a year ago, and a ₹397 crore forex loss.

Half-year and balance sheet

For April-September, standalone profit was just ₹1,031 crore, against ₹12,566 crore in the first half of last year, a drop of about 92%. Borrowings, excluding lease liabilities, were ₹15,246 crore at the end of September, up from ₹12,262 crore a year earlier. Quarterly interest expense rose to ₹659 crore from ₹420 crore.

What we’d watch from here

For BPCL, the outlook depends on two things it doesn’t fully control: crude prices and how much of that cost it is allowed to pass on to customers. Strong refining margins rescued this quarter. If they ease before fuel and LPG pricing improves, the June-quarter loss is a reminder of how fast things can turn. For background on why oil swings move this sector, read our explainer on how crude oil affects the Indian stock market and our earlier look at oil and gas stocks during the Brent spike. If you’re new to results season, start with how to analyse quarterly results.

Disclaimer: This article is for information and education only and is not investment advice. Please do your own research or consult a SEBI-registered adviser before making investment decisions.