Bharat Petroleum Corporation Ltd (BPCL) reported a challenging first quarter of FY27, with a loss of ₹3,962 crore as elevated crude prices, driven by geopolitical tensions in the Middle East, and compressed marketing margins weighed on performance.
The volatility highlighted the need for an integrated, diversified and resilient business model, while rising energy demand, increasing petrochemical consumption, expanding gas infrastructure and emerging green-energy markets will offer significant long-term opportunities, said its CMD Sanjay Khanna in a letter to shareholders.
Core businesses and new energy in focus
BPCL plans to strengthen the competitiveness of its core businesses, improve customer centricity and execute major projects with safety, speed and capital discipline.
The company is also targeting petrochemicals, gas, compressed biogas (CBG), renewable energy and digital businesses as future growth engines, alongside investments in people, research and strategic partnerships.
Green Hydrogen
In green hydrogen, BPCL is preparing a 5,000-tonne-per-annum project at Bina, alongside its operational 5 MW plant. The project is scheduled to begin supplies in 2028 and is expected to supply green hydrogen to the refinery for 15 years.
The project could help reduce carbon emissions by around 57,000 tonnes annually. At Kochi, BPCL has also commissioned South India’s first Green Hydrogen Refuelling Station for mobility under the National Green Hydrogen Mission.
CBG capacity to expand
NeuEN Green Energy, BPCL’s joint venture with Sembcorp, has secured a contract to supply 10 KTPA of green hydrogen to Numaligarh Refinery at ₹279 per kg, described as the lowest tariff discovered for green hydrogen in the country.
In CBG, BPCL plans to establish 26 plants over the next two years through its own investments and joint ventures. Nineteen projects have already been approved under its investment plan, with a combined capacity of around 50,000 tonnes per annum.
BPCL said these initiatives are aimed at building the capabilities and commercial experience required to scale emerging energy businesses while strengthening its position across India’s evolving energy landscape.