1. At a Glance
With a 35.3 MMTPA refining capacity and a 6% dividend yield, BPCL is the public sector’s oily cash cow. It refines crude, sells fuel, and occasionally gives investors heartburn (thanks to global crude swings). But don’t let that fool you—this is one of India’s most consistent profit machines.
2. Introduction with Hook
Imagine owning a company that literally fuels India—cars, jets, stoves, even elections (allegedly). BPCL does all that and more.
- Market Cap: ₹1.50 lakh Cr
- Dividend Yield: 6.06%
- ROE: 17.3%
- India’s second-largest oil refiner (after IOC)
But it’s not all roses—crude price volatility, inventory losses, and PSU bureaucracy make it a spicy bet.
3. Business Model (WTF Do They Even Do?)
Refining + Marketing = BPCL
Refineries:
- Mumbai (12 MMTPA)
- Kochi (15.5 MMTPA)
- Bina (7.8 MMTPA, via BORL)
Retail Network:
- 20,000+ fuel outlets
- LPG distribution
- Aviation turbine fuel (ATF)
- Lubricants (under “MAK” brand)
BPCL imports crude → refines it → distributes fuel pan-India → pays dividends → PSU party continues.
4. Financials Overview
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue | ₹4.4 L Cr | ₹4.48 L Cr | ₹4.73 L Cr |
| Net Profit | ₹13,337 Cr | ₹26,859 Cr | ₹2,131 Cr |
| OPM | 6% | 10% | 2% |
| ROE | 17.3% | 32% | 7% |
| EPS | ₹30.74 | ₹61.91 | ₹4.91 |
Takeaway:
2024 was a blockbuster due to inventory gains and refining margins. FY25 normalized, but profits are still healthy. That dividend? Still flowing like diesel in a tanker’s nozzle.
5. Valuation
- CMP: ₹347
- P/E: 11.1
- P/B: 1.85
- Dividend Yield: 6.06%
Valuation Angles:
- P/E-based FV (15x ₹30.74 EPS) = ₹460
- EV/EBITDA-based FV = ₹420–₹460
- DCF = volatile due to oil price fluctuations
EduFair Value Range: ₹410–₹460
At current prices, BPCL trades like a PSU but yields like a REIT.
6. What’s Cooking – News, Triggers, Drama
- Management Reshuffle (July 2025): New Director (Marketing), Business Head (Gas) resigned. Stability or chaos? Stay tuned.
- Privatization Rumors: Always cooking, never served.
- Dividend Bonanza: 30–40% payout ratio continues.
- Capex: ₹13,000+ Cr in CWIP—upgrading refineries, fuel pumps, and renewable forays.
7. Balance Sheet
| Item | FY25 | FY24 | FY23 |
|---|---|---|---|
| Equity Capital | ₹4,273 Cr | ₹2,136 Cr | ₹2,129 Cr |
| Reserves | ₹77,112 Cr | ₹73,499 Cr | ₹51,393 Cr |
| Borrowings | ₹61,101 Cr | ₹54,599 Cr | ₹69,376 Cr |
| Total Liabilities | ₹2.18 L Cr | ₹2.02 L Cr | ₹1.88 L Cr |
Verdict:
Debt has come down; reserves are strong. It’s a refinery wrapped in a dividend-paying fortress.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| FY25 | ₹23,678 Cr | -₹19,180 Cr | -₹6,241 Cr | -₹1,743 Cr |
| FY24 | ₹35,936 Cr | -₹10,521 Cr | -₹25,427 Cr | -₹12 Cr |
| FY23 | ₹12,466 Cr | -₹7,806 Cr | -₹4,402 Cr | ₹257 Cr |
Insight:
Cash cow with Capex muscles. Financing cash flow is mostly dividend + interest outflow = investor candy.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 | FY24 | FY23 |
|---|---|---|---|
| ROE | 17.3% | 32% | 7% |
| ROCE | 16.2% | 32% | 7% |
| OPM | 6% | 10% | 2% |
| Dividend Yield | 6.06% | 5.9% | 4.8% |
| D/E Ratio | ~0.79x | ~0.73x | ~1.2x |
Verdict:
Refining margins = king. When crude cooperates, BPCL looks like a genius.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | Expenses | OPM | Net Profit |
|---|---|---|---|---|
| FY25 | ₹4.4 L Cr | ₹4.15 L Cr | 6% | ₹13,337 Cr |
| FY24 | ₹4.48 L Cr | ₹4.04 L Cr | 10% | ₹26,859 Cr |
| FY23 | ₹4.73 L Cr | ₹4.62 L Cr | 2% | ₹2,131 Cr |
Pattern:
Volatile—but when margins rise, BPCL becomes a PSU version of Tesla.
11. Peer Comparison
| Company | CMP | P/E | ROE | Div Yield | Sales | PAT |
|---|---|---|---|---|---|---|
| BPCL | ₹347 | 11.1 | 17.3% | 6.06% | ₹4.4 L Cr | ₹13,337 Cr |
| IOC | ₹151 | 17.6 | 6.6% | 1.99% | ₹7.6 L Cr | ₹12,133 Cr |
| HPCL | ₹440 | 13.9 | 13.7% | 2.39% | ₹4.3 L Cr | ₹6,736 Cr |
| MRPL | ₹148 | 459 | 0.43% | 2.03% | ₹94K Cr | ₹56 Cr |
| CPCL | ₹747 | 52 | 2.5% | 7.36% | ₹59K Cr | ₹214 Cr |
Verdict:
BPCL scores a sweet balance between profitability, yield, and growth—PSU tag being its only drag.
12. Miscellaneous – Shareholding, Promoters
| Holder | % Holding |
|---|---|
| Promoters (GoI) | 52.98% |
| FIIs | 14.58% |
| DIIs | 22.23% |
| Public | 9.26% |
Fun Fact:
Retail investors are increasing steadily. The public now owns a bigger slice than it did in 2022.
13. EduInvesting Verdict™
BPCL is the PSU with a heart (and dividends) of gold. It’s cyclical, yes. It’s volatile, sure. But it’s also reliable. When refining margins are good, BPCL mints cash. When they’re not, you still get 6% dividend to soothe your tears.
With ongoing modernization, steady cash flows, and strong institutional backing, this oil beast isn’t going extinct anytime soon.
BPCL: Bharat ka Petrol, Capital ka Love.
Metadata
– Written by EduInvesting Analyst Team | 18 July 2025
– Tags: BPCL, Oil & Gas, Refinery, PSU Dividend Kings, Bina Refinery, Crude Oil, PSU Investing
