Bharat Petroleum Corporation Limited (BPCL) is building on its legacy, core strengths, technology and people to deliver energy solutions. At its 73rd Annual General Meeting, Sanjay Khanna, Chairman and Managing Director, BPCL, highlighted the company’s operational and financial performance, progress across various segments and other focus areas. Edited excerpts…
BPCL completed 50 years of national service and entered its next phase with renewed confidence, greater scale and a sharper sense of purpose. India is transforming at an unprecedented speed. To match this pace, BPCL is combining the strength of its legacy, its core businesses, the ingenuity of its people and technology to create affordable, reliable, sustainable and secure energy solutions. The purpose is clear: to power the growth of today while building the energy architecture of tomorrow, and to help create a stronger, more resilient and self-reliant Bharat.
India’s resilience amidst uncertainty
Financial year 2025-26 ended against a complex global backdrop, marked by geopolitical tensions, supply chain disruptions, volatile commodity prices and a fragmented global economy. The energy sector felt this uncertainty particularly sharply, with the conflict in West Asia and closure of the Strait of Hormuz disrupting energy flows and infrastructure. The scale of the disruption was also reflected in energy prices. Freight, insurance and shipping costs rose sharply as supplies tightened. BPCL responded to this volatility with agility and foresight to ensure uninterrupted operations. For an energy-importing nation like India, energy security cannot depend on a single source, route or technology. Yet, India remained resilient. Strong domestic demand, public investment, industrial activity and a vibrant service sector sustained economic momentum. India’s development journey will require more energy in absolute terms and energy that is more diversified, efficient and increasingly indigenous. This creates a distinctive transition pathway. Hydrocarbons will continue to be important for various sectors, while renewable power, natural gas, biofuels, green hydrogen, energy storage and digital intelligence will rapidly gain scale. Hence, energy must be built as an integrated system in which every source plays the role for which it is best suited. BPCL’s strategy is anchored in this pragmatic balance of energy security, affordability and sustainability.
Highlights of 2025-26
BPCL remained agile, disciplined and delivered one of the strongest operational and financial performances in its history, even as the global environment tested the resilience of the energy sector. Refineries achieved the highest-ever crude throughput of 41.2 million metric tonnes (mmt), with 116.6 per cent capacity utilisation, the highest in the industry. It delivered a gross refining margin of $11.74 per barrel, the highest among public sector oil marketing companies (OMCs). Market sales reached a record 54.2 mmt. Operational excellence was also matched with decisive investment in the company’s future. Consolidated capex reached a record Rs 213.72 billion during the year, strengthening the core businesses while creating capabilities and growth engines that are expected to shape the next phase of the journey. Together, these achievements translated into a consolidated profit after tax of Rs 258.43 billion. This strong financial performance gives BPCL the strength to invest ambitiously, navigate volatility and pursue long-term growth with financial prudence. The strong performance has created the momentum and capacity to accelerate transformation. Project Aspire, a five-year strategic programme, is built on two fundamental pillars: to nurture and strengthen the core businesses in refining, marketing and upstream; and to make bold investments in future growth engines such as petrochemicals, gas, green energy, non-fuel solutions and digital businesses.
Strengthening refining
Project Aspire is moving decisively through execution, with the priority to allocate capital with discipline and deliver projects safely, on time and cost-effectively. At Mumbai Refinery, a petro resid fluidised catalytic cracker project worth around Rs 140 billion is coming up to replace two vintage process units. Further, BPCL commissioned the 200 kilotonnes per annum de-aromatised solvents unit during the year. It is also establishing a co-processing facility at Mumbai Refinery, which will use renewable feedstock to produce sustainable aviation fuel (SAF). At Kochi Refinery, the planned expansion will increase refining capacity from 15.5 million metric tonnes per annum (mmtpa) to 17 mmtpa, along with the ongoing polypropylene project. At Bina Refinery, an integrated refinery expansion and petrochemical project is under way to raise refining capacity from 7.8 mmtpa to over 11 mmtpa, and includes upcoming ethylene cracker and downstream petrochemical units.
Strengthening market offerings
During 2025-26, BPCL expanded its retail network to 25,323 outlets and maintained a strong position among public sector OMCs, with a market share of 27.3 per cent. Through fully automated retail outlets and integrated payment system, BPCL is making fuelling more accurate, seamless and convenient.
BPCL’s flagship liquefied petroleum gas (LPG) brand Bharatgas is an integral part of the company’s contribution to nation-building. LPG cylinders at bottling plants are subjected to stringent quality and safety checks to ensure zero defects for customers.
India’s industrial expansion requires energy partners that can provide not just products, but also tailored solutions, reliable logistics and responsive service. BPCL continues to enhance sourcing flexibility, strengthen supply chain resilience and expand value-added offerings across a diverse customer base. During the year, it achieved sales of 7.2 mmt, supported by strong performance across its core product segments. The aviation business achieved its highest-ever sales of 2.2 mmt and a market share of 26.5 per cent with 11.4 per cent growth, significantly outpacing the industry’s growth of 2 per cent. BPCL is also strengthening fuelling infrastructure, deepening airline relationships and preparing for emerging SAF requirements.
Further, BPCL’s extensive pipeline network serves as a vital bridge between supply locations and key consumption centres. During the year, it commissioned the 425-km Krishnapatnam-Hyderabad Multiproduct Pipeline featuring a capacity of 4.4 mmtpa.
Upstream and global sourcing
While the energy portfolio continues to be diversified, access to reliable hydrocarbon resources will remain essential to India’s energy security and to BPCL’s integrated value chain. Through its subsidiary company, Bharat PetroResources Limited, the company continues to pursue a calibrated upstream strategy. The combined investment in the upstream projects in Brazil and Mozambique is approximately $6.5 billion, reflecting the scale of commitment to building a globally diversified and strategically relevant upstream portfolio. BPCL also established its trading arm, Bharat Petroleum Global Energy Services, a wholly owned subsidiary based in Singapore.
Building the petrochemicals portfolio
India’s petrochemical demand is set to expand. Currently, the per-capita consumption remains below global averages, creating substantial headroom for long-term growth. BPCL is positioning itself to participate meaningfully in this opportunity. The Bina petrochemical and refinery expansion project and the polypropylene project at Kochi are progressing well, and are together expected to broaden the product portfolio, improve integration and diversify earnings beyond transportation fuels. Further, pre-project activities for the proposed 9 mmt refinery-cum-petrochemical complex at Ramayapatnam in Andhra Pradesh are in full swing.
Focus on natural gas and biofuels
Natural gas remains an important pillar of BPCL’s growth agenda and India’s transition to a cleaner energy future. During the year, the company’s gas business recorded strong growth, with volumes handled increasing 25 per cent from 1.8 mmt to 2.3 mmt. Over 300,000 households were added to the piped natural gas network, taking cumulative household coverage to around 850,000.
BPCL firmly believes that the gas ecosystem of the future will extend beyond conventional natural gas and progressively incorporate renewable gas, particularly compressed biogas (CBG). During the year, the company achieved its highest-ever CBG blending of 4.2 per cent, significantly exceeding the mandated requirement of 1 per cent. This momentum is further supported by the government’s GOBARdhan – National Circular Bioenergy Scheme. BPCL is already translating this opportunity into action. It commissioned its first municipal solid waste-based CBG plant at Brahmapuram in Kochi, capable of processing 150 tonnes of biodegradable waste daily to produce around 5.6 tonnes of CBG. Further, the geographical area in Satna, Madhya Pradesh, recently became a 100 per cent CBG district, providing a model for replication across more districts.
Another major milestone for biofuels was the commissioning of the integrated biorefinery at Bargarh, Odisha, bringing first-generation and second-generation ethanol production together within a single complex. In green hydrogen, at Bina, alongside the operational 5 MW green hydrogen plant, preparations are under way for a 5,000 tonne per annum green hydrogen project, scheduled to commence supply in 2028. In alignment with the National Green Hydrogen Mission, BPCL has commissioned South India’s first green hydrogen refuelling station for mobility at Kochi. These initiatives are building the capabilities and commercial experience needed to take green hydrogen from demonstration to scale.
A similar approach is being adopted in CBG, combining investments with multiple joint venture partners to expedite setting up CBG plants across the country. Over the next two years, BPCL plans to establish 26 CBG plants. Under its investment plan, 19 projects have been approved, with a total capacity of about 50,000 metric tonnes per annum.
Converting momentum into value
The year ahead will not be without challenges. The first quarter of 2026-27 was challenging, with a loss of Rs 39.62 billion due to elevated crude prices arising from geopolitical tensions in the Middle East and compressed marketing margins to cater to bigger national purpose. While short-term volatility will remain a feature of the industry, it reinforces the need for an integrated, diversified and resilient business model. India’s opportunity remains compelling.
Rising energy demand, growing petrochemical consumption, expanding gas infrastructure and emerging markets for green energy will create significant opportunities. BPCL is well positioned to capture them with its trusted brand, integrated value chain, strong customer network, project capabilities, R&D strength, digital platforms and healthy balance sheet. As the company enters the next 50 years, it will remain reliable in its core, bold in choices, disciplined in investments and humane in purpose, with continued efforts to energise lives, strengthen national energy security and advance India’s journey towards an Atmanirbhar Bharat
