BPCL shares gain 2% after solar project win and Rs 6,100 crore refinery plan

Shares of Bharat Petroleum Corporation Ltd (BPCL) were in focus today, trading higher after the company announced significant updates, including emerging as the lowest bidder for a 150 MW solar PV power project and approval for a greenfield refinery project.

BPCL wins 150 MW solar project bid

BPCL secured the lowest bid in NTPC’s tender for 1,200 MW ISTS-connected solar PV power projects across India. The project, to be developed over two years, involves a capital outlay of Rs 756.45 crore. Once operational, the solar plant is expected to generate 400 million units of clean energy annually and bring in revenue of Rs 100 crore.

Approval for Rs 6,100 crore refinery project

BPCL’s board approved pre-project activities for a greenfield refinery and petrochemical complex on the East Coast in Andhra Pradesh. This Rs 6,100 crore project includes land acquisition, detailed feasibility studies, environmental impact assessments, and engineering designs.

Focus on sustainability and innovation

Earlier this month, BPCL and Coal India signed an MoU to explore a coal-to-synthetic natural gas project in collaboration with Western Coalfields Limited. This aligns with BPCL's broader strategy of sustainability and innovation in energy production.

Financial performance and market trends

BPCL shares have gained about 30 per cent over the past year, outperforming the Nifty 50’s 13 per cent rise during the same period. Despite these gains, the company reported a 72 per cent year-on-year drop in Q2 FY25 consolidated net profit to Rs 2,297 crore, attributed to lower refining margins and weaker cracks.

Outlook remains strong

With strategic projects in the pipeline and an increasing focus on clean energy, BPCL is poised for growth. The company’s diversification into solar energy and advanced refinery projects demonstrates its commitment to long-term sustainability and profitability, bolstering investor confidence.

BPCL shares were trading at Rs 292.00, up 1 per cent, as of the last close on December 24, 2024, supported by strong volumes of nearly 7.9 million shares traded.