BPCL Broadens Distribution Of 10-Kg LPG Cylinders Ahead Of August 15 Nationwide Expansion
BPCL expands 10-kg LPG cylinder availability nationwide
State-owned Bharat Petroleum Corporation Ltd. (BPCL) has announced plans to expand the availability of its 10-kg LPG cylinders to 100 additional cities across 24 states by August 15, as part of its efforts to improve access to smaller cooking gas cylinders. The announcement was made during the company’s post-earnings conference call, alongside updates on its crude sourcing strategy and financial performance for the June quarter. BPCL said it has also diversified its crude oil procurement during the first quarter of FY27 by increasing imports from Venezuela and Angola. Russian crude accounted for 38% of the company’s total crude purchases during the April-June period, while spot cargo sourcing rose significantly to 69%, compared with 44% in the corresponding quarter last year.
The company said it currently holds 3.8 million tonnes of crude oil inventory, sufficient to meet around 35 days of operational requirements. BPCL also provided an update on its overseas investments, stating that operations at its Mozambique liquefied natural gas (LNG) project are expected to begin in FY29. The operational announcements came alongside a weak financial performance for the June quarter. BPCL reported a consolidated net loss of ₹3,962 crore, compared with a profit of ₹3,919 crore in the previous quarter.
Revenue for the quarter stood at ₹1.51 lakh crore, while the company posted an earnings before interest, tax, depreciation and amortisation (EBITDA) loss of ₹4,077 crore. Despite the quarterly loss, brokerage firms remained optimistic about the company's long-term outlook. Citi maintained its 'Buy' rating on BPCL with a target price of ₹350 per share, saying the company's operational execution remained strong despite a challenging macroeconomic environment. The brokerage also retained BPCL as its preferred pick among India's oil marketing companies. Macquarie also reiterated its 'Outperform' rating on the stock and assigned a target price of ₹370 per share.
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The brokerage noted that weaker marketing performance during the quarter was partly offset by stronger-than-expected refining earnings. It added that BPCL's crude supply position remains comfortable, although volatility in global oil prices could continue to affect profitability in the coming quarters. The planned expansion of 10-kg LPG cylinders is expected to improve accessibility for urban households, small businesses and consumers seeking a more compact and affordable cooking gas option. The move is part of BPCL's broader strategy to strengthen its retail fuel and LPG distribution network across the country.
On the stock market, BPCL shares were trading 0.49% lower at ₹312.95 around 12:25 pm. In comparison, the BSE Sensex was down 0.27% at 76,549, reflecting broader weakness in the market. The company's latest operational updates suggest BPCL is focusing on balancing expansion initiatives with supply diversification amid volatile global energy markets. Investors will continue to monitor crude price movements, refining margins and demand trends as key factors influencing the company's performance in the quarters ahead.
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