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BPCL and Oil India Form JV for Arunachal CGD Project

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Synopsis:

BPCL and Oil India announce a joint venture to launch a ₹125 crore city gas distribution project in Arunachal Pradesh. The venture’s shareholding is set at 50% each. BPCL's Q2 net profit saw a 20.5% drop.

BPCL news today

On October 26, Bharat Petroleum Corporation Ltd (BPCL) revealed a joint venture (JV) agreement with Oil India Ltd to develop city gas distribution (CGD) networks in Arunachal Pradesh. The BPCL board approved this JV plan during a meeting held on October 25, aiming to expand natural gas availability in the northeastern region. This JV aligns with BPCL's strategy to support clean energy initiatives across India and could catalyse development in remote areas by providing piped natural gas.

BHARAT PETROLEUM CORP LT

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332.050.09 (0.02 %)

Updated - 01 July 2025
335.50day high
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330.90day low
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3921773
VOLUME (BSE)

Joint venture details and equity distribution

The JV will be jointly held by BPCL and Oil India, each holding 50% equity, with an option for the Arunachal Pradesh government or its nominee to acquire a 10% stake. In this case, BPCL and Oil India’s shares will be adjusted proportionally. The proposed JV company (JVC) will operate with an authorised share capital of ₹125 crore, which comprises 12.5 crore shares valued at ₹10 each. The initial subscribed and paid-up capital will be ₹5 crore.

Financial performance of BPCL for Q2 FY24

In addition to the JV announcement, BPCL reported a decline in financial performance for the July-September quarter. The company posted a net profit of ₹2,397 crore, down by 20.5% from the previous quarter and significantly lower than the ₹4,207 crore anticipated by CNBC-TV18. BPCL’s revenue for the quarter reached ₹1.03 lakh crore, marking a 9.1% decline from the June quarter’s topline. EBITDA for Q2 stood at ₹4,547 crore, missing the anticipated ₹7,211 crore and reflecting a 19.5% sequential drop. The EBITDA margin for the quarter was recorded at 4.4%, falling short of the predicted 6.8%.

BPCL share price performance

BPCL’s recent financial results impacted its stock, as shares closed 4.82% lower at ₹305.95 on October 25. The company’s stock has seen a steady decline, down by 11.34% over the past month. With this new venture, BPCL may seek to leverage its growth potential in clean energy while stabilising its financial performance amidst recent market fluctuations.

BPCL’s joint venture with Oil India marks a significant step towards extending natural gas infrastructure in the northeastern region, potentially enhancing energy access and contributing to clean energy goals. As the venture progresses, BPCL’s performance will be closely monitored, particularly regarding BPCL's share price and quarterly financial results, reflecting the company’s resilience and adaptability in the energy sector.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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