According to Motilal Oswal's research report dated July 23, 2026, the brokerage has recommended a Neutral rating on BPCL with a target price of ₹330. The valuation is based on Sum-of-the-Parts (SoTP) methodology. As reported by Motilal Oswal, the stock currently trades at 1.2x 1-year forward P/B ratio, which is below its 10-year average of 1.7x.
According to Motilal Oswal's analysis, BPCL delivered a robust Gross Refining Margin (GRM) of USD 41.4 per barrel during the quarter. The GRM, adjusted for SAED, stood at USD 17 per barrel, which exceeded estimates of USD 15 per barrel. The company's implied gross marketing margin (GMM) loss, including inventory, was ₹16.3 per litre, while adjusted for SAED, the GMM loss was ₹5.5 per litre, which was better than the estimated loss of ₹10.1 per litre.
As reported by Motilal Oswal, BPCL's EBITDA and PAT losses came in lower than estimates at ₹41 billion and ₹40 billion respectively. The estimates had projected higher losses of ₹123 billion and ₹103 billion for EBITDA and PAT respectively. According to the brokerage, this performance indicates better-than-expected operational efficiency during the quarter.
According to Motilal Oswal's assessment, the current valuation multiples suggest BPCL is trading at a discount to its historical averages. The brokerage has reiterated its Neutral stance on the stock, reflecting a balanced view on the company's near-term prospects. The target price of ₹330 represents a potential upside from current trading levels, based on the company's operational performance and market positioning.
