State-owned oil marketing company Bharat Petroleum Corporation Limited on Wednesday said it has increased its spot purchase of crude oil to 60% due to the ongoing conflict in West Asia.
The company, during its investor call for the fourth-quarter results, said it had initially planned to procure 45% of its crude requirement through spot purchases. However, disruptions in crude supply through the Strait of Hormuz — a key waterway that handles nearly 20% of global crude supply and around 40% of India’s crude imports — forced the company to raise spot purchases to 60%.
“At the beginning of the year, we had allocated around 55% of our requirement through term contracts. But we are not getting the full term quantities. We are getting around 45–46% of our term requirement because there are constraints in the Strait of Hormuz. The roughly 10% shortfall is being met through spot purchases. Initially, we had planned for 45% spot procurement, but now it is around 60%,” said the company in an investor call.
BPCL further said that several grades of crude are available in the spot market, but Russia continues to remain the major source of procurement. The company increased its Russian crude procurement from 25% in Q3 to 31% in Q4 and said it continues to rise to bridge supply gaps arising from the current geopolitical situation.
The company also outlined a capital expenditure plan of Rs25,000 crore for FY27, with major investments focused on the Bina petrochemical project. According to the company, around Rs11,000 crore has been allocated towards refinery and petrochemical projects, including the Polypropylene project at Kochi, the PRFCC project at Mumbai Refinery and the Bina project.
For marketing initiatives, including expansion of retail outlets, infrastructure and supply logistics, BPCL has earmarked around Rs10,000 crore. The company has also planned an equity infusion of around Rs2,250 crore into BPRL for ongoing upstream projects, while around Rs1,700 crore has been allocated towards CGD network expansion. Overall, the total capital allocation for FY27 stands at Rs25,000 crore.
Meanwhile, BPCL said its refineries operated at 116% utilisation during FY26, while refinery throughput reached a record 41.15 million tonne (MT). Its gross refining margin (GRM) for FY26 stood at $11.74 per barrel.
The company reported a net profit of Rs3,191.49 crore for the January-March quarter of FY26, compared with Rs3,214.06 crore in the same period a year ago and Rs7,545.27 crore in the preceding quarter.
For the fiscal year ended March 31, 2026, BPCL’s net profit rose 75% to Rs23,303.22 crore from Rs13,275.26 crore in FY25.
The company also reported an under-recovery of Rs12,318.52 crore in FY26 on the sale of domestic LPG below cost.
Revenue from operations stood at Rs1.34 lakh crore in Q4 and Rs5.22 lakh crore for the full fiscal year FY26.
