BPCL shares fall after Q3 results and dividend announcement

Bharat Petroleum Corporation’s (BPCL) share price opened at ₹284.70 on Thursday, a slight increase from the previous day’s close of ₹277.70, following the release of Q3 results after market hours on Wednesday. However, the stock dropped over 1%, falling to ₹272.55 during Thursday’s morning trades.

BPCL Q3 results

Bharat Petroleum Corporations Ltd (BPCL) reported net profit for the quarter ending December’2025 stood at ₹4649 Crore, which marked a rise of 36.85% year on year over ₹3397.27 crore reported during the year ago quarter. The net profit had nearly doubled compared to ₹2,397.23 crore in the previous quarter ending September 2024.

However, Bharat Petroleum Corporations Ltd (BPCL) revenues from operations during the Q3 FY25 at ₹1,27,520.50 crore came slightly lower than ₹1,29,946.95 crore during the year ago quarter.

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Here’s why:

Volatile Markets

BPCL’s share price decline can be attributed to weak market conditions, as the benchmark indices remained volatile, with the S&P BSE Sensex falling by up to 0.2%.

Rising Crude Prices

Increasing crude oil prices are raising concerns about the profitability of oil marketing companies like BPCL. Higher crude costs impact the marketing margins these companies earn, especially if retail fuel prices don’t rise proportionally. Marketing margins refer to the profit oil companies make from selling fuel at retail outlets. Rising crude prices and a depreciating rupee are increasing import costs for oil marketing companies, leading to higher working capital requirements.

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Declining Refining Margins

Higher tariff concerns are squeezing benchmark refining margins. BPCL reported strong operational performance in Q3FY25, driven by better marketing margins. However, its average gross refining margin (GRM) fell to $5.95 per barrel in 9MFY25, down from $14.72 per barrel last year, with refinery shutdowns affecting throughput. The company’s outlook depends on the recovery of margins and government actions, amid declining fuel consumption and volatile crude prices, according to Akriti Mehrotra, Research Analyst at Stox Box.