According to the company, the demand includes excise duty of Rs 476.94 crore, along with applicable interest of Rs 1,339.70 crore and a penalty of Rs 95,000. BPCL said it will analyse the order and file an appeal before the Customs Excise and Service Tax Appellate Tribunal (CESTAT).
Detailing the matter, the public sector undertaking said there were 19 show cause notices (SCNs) pending adjudication with the central excise department related to transaction value under the Central Excise law. The Adjudicating Authority has now disposed of these notices through an order dated February 21, 2026.
Out of the total amount, BPCL said the confirmed demand of Rs 476.94 crore relates to the pre-merger period of Kochi Refineries Limited, covering September 2004 to August 2006.
BPCL Q3 snapshot
The state-run oil marketing company reported a sharp 89% jump in its December quarter net profit at Rs 7,188 crore, compared with Rs 3,806 crore in the corresponding period last year. The profit after tax for the quarter is attributable to the owners of the company.
Revenue from operations for the third quarter of FY26 stood at Rs 1.36 lakh crore, marking a 7% increase from Rs 1.28 lakh crore reported in the same quarter of the previous financial year.
Alongside its quarterly results, BPCL announced a second interim dividend of Rs 10 per share for FY26. The company has fixed Monday, February 2, 2026, as the record date to determine the eligibility of shareholders entitled to receive the dividend.
During the quarter, BPCL’s total expenses rose to Rs 1.27 lakh crore, compared with Rs 1.14 lakh crore in Q2FY26 and Rs 1.23 lakh crore in Q3FY25. The expenses were incurred on account of costs such as materials consumed, purchase of stock-in-trade, excise duty and finance costs, among others.
The company’s operating performance was supported by an improvement in refining margins. BPCL reported an average Gross Refining Margin (GRM) of $9.68 per barrel for the nine months ended December 31, 2025, compared with $5.95 per barrel in the corresponding April–December period of 2024.
BPCL shares have risen over 18% in the last 6 months.
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