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The market asks roughly as much of BPCL as of Indian Oil.
At current prices, buyers of BPCL are assuming about 0% growth against 3% in its own record; for Indian Oil it is 0% against 2%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: both on estimate withheld.
- Size: Indian Oil is worth about 1.5 times BPCL on the stock market.
- Record: On revenue the two have grown at much the same pace: BPCL compounded at about 8% a year (FY2018–FY2026) and Indian Oil at about 7% (FY2018–FY2026).
- What to watch: refining margins at BPCL; gross refining margins at Indian Oil.
| BPCL | Indian Oil | |
|---|---|---|
| Price | ₹302 | ₹144 |
| Market cap | ₹1.29L Cr | ₹1.98L Cr |
| P/E | 8.2 | 4.2 |
| P/B | 1.29 | 0.90 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Estimate withheld | Estimate withheld |
01Two businesses
A state refiner and fuel retailer
Bharat Petroleum Corporation (BPCL), majority-owned by the Government of India, runs refineries at Mumbai, Kochi and Bina and one of the country's largest networks of petrol pumps. It also sells LPG under the Bharatgas brand and has interests in upstream oil and gas.
India's biggest refiner and fuel retailer
Indian Oil Corporation (IOC) is a state-owned oil company and India's largest refiner, with refineries including Panipat, Mathura, Gujarat and Paradip. It runs the country's largest network of petrol pumps and of product pipelines.
02The records side by side
On revenue the two have grown at much the same pace: BPCL compounded at about 8% a year (FY2018–FY2026) and Indian Oil at about 7% (FY2018–FY2026). By revenue, Indian Oil is about 1.7 times the size of BPCL. BPCL kept 4.9% of revenue as net profit in FY2026; Indian Oil kept 4.8% of revenue as net profit in FY2026. BPCL was profitable in every year shown; Indian Oil reported a net loss in FY2020.
Full ten-year tables and charts are on each company's page: BPCL · Indian Oil.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Refining marginsProduct prices minus crude costs drive refining profit.
- Marketing marginsRetail fuel pricing decides marketing profit.
- Gross refining marginsThe difference between product prices and crude costs drives refining profit.
- Marketing marginsHow far retail prices are allowed to track costs decides fuel-retail profit.
05What could go wrong
- Government pricingRetail prices can be held down when crude rises.
- Crude volatilityInventory gains and losses swing reported profit.
- Government pricingRetail fuel prices can be held down when crude rises.
- Crude volatilitySharp moves in oil prices create big swings in reported profit.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is BPCL or Indian Oil better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, BPCL trades at 8.2 times earnings and 1.29 times book value, and Indian Oil at 4.2 times earnings and 0.90 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between BPCL and Indian Oil?
Bharat Petroleum Corporation (BPCL), majority-owned by the Government of India, runs refineries at Mumbai, Kochi and Bina and one of the country's largest networks of petrol pumps. Indian Oil Corporation (IOC) is a state-owned oil company and India's largest refiner, with refineries including Panipat, Mathura, Gujarat and Paradip.
Are BPCL and Indian Oil valued the same way?
Yes — both on estimate withheld, so their workings compare like for like.
What does today's price assume for BPCL and Indian Oil?
Worked backwards from the share price, BPCL needs about 0% growth and Indian Oil about 0% growth, against 3% and 2% in their own records.