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Stay Neutral On BPCL Shares Maintains Motilal Oswal Post Strong Q2, Says Capex Cycle Clarity Key To Re-Rating
While BPCL's valuation appears reasonable and strong marketing performance continues, a muted medium-term refining outlook and the commencement of a new capex cycle emerge as key concerns.
03 Nov 2025, 09:57 AM IST 
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BPCL currently trades at 1.4x one-year forward P/B vs the 10-year average of 1.8x.
(Photo Source: Company website)
BPCL’s Ebitda/PAT came in 32%/40% above expectationsin Q2 FY26, driven by higher-than-anticipated GRM ($10.8/bbl). Blended marketing margin also stood 35% above estimate at Rs 7.2/lit (up 25% YoY). Refining throughput and marketing volumes came in line with estimates.
