Bharat Petroleum Corporation Limited (BPCL): Comprehensive Stock Analysis Report | Scrolls
- Editor
- Sep 3
- 2 min read
by KarNivesh | 03 September, 2025
Bharat Petroleum Corporation Limited (BPCL) is India’s second-largest government-owned oil marketing company. With a market capitalization of ₹1,36,640 crores, BPCL plays a central role in India’s energy sector and is actively preparing for the country’s energy transition.
Company Overview
Founded in 1952, BPCL has grown from Burmah Shell Refineries into one of India’s premier integrated oil and gas companies. The Government of India holds a 52.98% stake, ensuring both strategic direction and stability. Today, BPCL operates three refineries with a combined capacity of 36.3 million metric tonnes annually and a retail network of over 23,600 outlets, capturing nearly 22% of the domestic petroleum market.
Strategic Business Model
BPCL runs on a vertically integrated model, covering everything from exploration to retail distribution. Refining contributes about 65% of its revenues, while marketing accounts for 35%. This balance helps protect the company from crude oil price volatility. In FY2024, BPCL achieved record refinery throughput of 39.93 million metric tonnes and market sales of 51.04 million metric tonnes. Importantly, its Gross Refining Margin stood at ₹1,173 per barrel (converted from $14.14), the highest among PSU peers.
Financial Performance
The company’s revenue grew strongly from ₹2,30,154 crores in FY2021 to ₹4,40,272 crores in FY2025. However, net profits have been volatile, ranging from ₹2,131 crores in FY2023 to ₹26,859 crores in FY2024, mainly due to fluctuations in global crude prices and refining margins.
Earnings per share (EPS) also reflected this volatility—₹5.00 in FY2023, rising to ₹63.04 in FY2024, before moderating to ₹31.21 in FY2025. On the balance sheet side, total assets grew from ₹1,60,992 crores in FY2021 to ₹2,18,382 crores in FY2025, while the debt-to-equity ratio improved from 1.30 to 0.75, showing better financial health.
Shareholding & Governance
The Government of India’s stake ensures long-term policy alignment with national energy goals. Foreign Institutional Investors (15.45%), Domestic Institutions (22.17%), and retail investors (9.40%) together create a balanced ownership pattern.
Valuation & Peer Comparison
As of September 2025, BPCL trades at a P/E ratio of 8.97 and a Price-to-Book of 1.70, with an attractive dividend yield of 3.18%. Its market capitalization surpasses peers like IOCL (₹99,000 crores) and HPCL (₹87,600 crores). Return on Equity (17.3%) outperforms both rivals, reflecting superior capital allocation.
Future Growth Prospects
BPCL’s ambitious Project Aspire, worth ₹1.70 lakh crore, aims to reshape its future. Key investments include:
₹49,000 crore Bina Petrochemical Complex to boost polymer production.
₹95,000 crore Andhra Pradesh Refinery to expand refining capacity by 9 million tonnes.
₹1 lakh crore for renewables, green hydrogen, and carbon capture.
BPCL also targets 2 GW renewable capacity by 2025 and 10 GW by 2035. EV charging infrastructure across 6,000 outlets will further strengthen its clean energy transition.
Risks
Like all oil companies, BPCL faces risks from crude price swings, regulatory interventions, project execution delays, and environmental transition challenges. However, its government backing and strong balance sheet provide resilience.
Conclusion
BPCL combines strong fundamentals, government support, and ambitious growth plans, making it a compelling investment for those looking at India’s energy transformation. With attractive valuations and dividend yields, gradual accumulation during market corrections could be a smart strategy.
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