Bharat Petroleum Corporation Limited delivered robust financial performance in the third quarter of FY26, with net profit surging 62.3% year-on-year to ₹7,545.27 crore. The oil marketing company's strong operational performance was reflected across key financial metrics, driven by improved refining margins and higher throughput.

Financial Performance Highlights

The company's revenue from operations grew 7.1% to ₹136,623.06 crore in Q3FY26 compared to ₹127,520.50 crore in the corresponding quarter of the previous year. Total income, including other income, reached ₹137,373.20 crore during the quarter.

For the nine months ended December 31, 2025, the company's performance was even more impressive, with net profit doubling to ₹20,111.73 crore from ₹10,061.20 crore in the corresponding period of FY25. Revenue from operations for the nine-month period stood at ₹387,771.85 crore compared to ₹373,506.32 crore in the previous year.

Operational Performance

Bharat Petroleum's operational metrics showed strong improvement across segments. Refinery throughput increased to 10.51 MMT in Q3FY26 from 9.54 MMT in Q3FY25, representing a significant capacity utilization enhancement.

The company's Average Gross Refining Margin (GRM) for the nine months ended December 31, 2025 improved significantly to $9.68 per barrel compared to $5.95 per barrel in the corresponding period of the previous year.

Dividend Declaration and Corporate Actions

The Board of Directors at its meeting held on January 23, 2026, declared a second interim dividend of ₹10 per equity share of face value ₹10 each, representing 100% dividend for FY26. The record date has been fixed as Monday, February 2, 2026, to determine shareholder eligibility.

Financial Health Indicators

The company's financial position remained robust with improved debt metrics. The debt equity ratio decreased to 0.06 times in Q3FY26 from 0.24 times in Q3FY25, indicating strengthened balance sheet position. Net worth increased substantially to ₹96,171.35 crore as of December 31, 2025, compared to ₹80,304.61 crore in the previous year.

Other expenses for the nine months included ₹708.38 crore on account of foreign exchange loss compared to ₹313.46 crore in the corresponding period of FY25. The company maintained strong liquidity with current ratio of 0.92 times and operating margin of 6.84% for the quarter.

LPG Buffer Account Update

The company reported a net cumulative negative buffer of ₹12,875.25 crore as on December 31, 2025, related to LPG pricing mechanisms. The Ministry of Petroleum and Natural Gas approved compensation of ₹7,594 crore towards under-recoveries, with ₹1,265.66 crore recognized during the reporting period through monthly installments commencing from November 2025.

Bharat Petroleum Corporation Limited has announced a major milestone for its exploration and production subsidiary, with the successful discovery of oil in Abu Dhabi Onshore Block 1. The discovery, announced on January 13, 2026, represents a significant achievement for Bharat PetroResources Limited (BPRL) as an international operator and marks a crucial step toward enhancing India's energy security.

Joint Venture Structure and Investment

The oil discovery was made through Urja Bharat Pte Limited (UBPL), a 50:50 Special Purpose Vehicle that serves as BPRL's operational arm for this project. The exploration journey began in March 2019 when UBPL was awarded the exploration concession, leading to substantial investment and systematic exploration activities.

Successful Well Discoveries

BPRL achieved breakthrough results with oil discoveries in two separate wells, demonstrating the block's significant potential across different geological formations. The first major success came from the XN-76 well in the Unconventional Shilaif play, where successful hydrofracking operations resulted in oil flowing to the surface from the Shilaif formation.

The second discovery occurred during testing of exploration well XN-79 02S, which flowed crude oil from the Habshan reservoir. This marks the first oil find in the Habshan reservoir within the concession area, expanding the geological understanding of the block's hydrocarbon potential.

Future Development and Appraisal Phase

The successful testing results have established the presence of unconventional oil resources in Onshore Block 1, with BPRL expressing strong optimism about the well results. The company is now focused on the upcoming appraisal phase, where it aims to establish the economic deliverability of wells and further assess the commercial viability of the discoveries.

BPRL's positive outlook on the well results indicates confidence in the block's potential to contribute meaningfully to the company's production portfolio. The appraisal phase will be critical in determining the long-term development strategy and investment requirements for bringing these discoveries into commercial production.

Strategic Impact on Energy Security

These oil discoveries represent more than just operational success for BPRL; they align with India's broader energy security objectives. As the country continues to seek diversified energy sources and reduce import dependence, international exploration successes like this Abu Dhabi discovery play a vital role in strengthening the nation's energy portfolio.

The achievement demonstrates BPRL's growing capabilities as an international operator and validates the strategic decision to invest in overseas exploration activities. With nearly USD 166 million invested over seven years, the successful discovery showcases the company's commitment to long-term exploration and its technical expertise in challenging geological environments.