Bharat Petroleum Corporation (BPCL) shares climbed 4% on Friday, despite the company’s fourth-quarter earnings falling short of expectations due to lower refining margins. This increase in stock value occurred as Citi maintained a bullish stance on BPCL, issuing a ‘buy’ call with a target price of ₹760.

What Happened: BPCL, a Maharatna public-sector undertaking, reported a 30% year-on-year decrease in consolidated net profit, which stood at ₹4,789.57 crore. Its turnover remained nearly flat year-on-year at ₹1.32 lakh crore.

Although the quarter saw a miss led by refining, BPCL experienced a recovery in EBITDA from the previous quarter. Additionally, the company's board approved a 1:1 bonus issue, promising one extra share for each share held.

The company recorded a pre-tax profit 20% below Citi’s estimates and a 39% decline in net income due to a ₹1,800 crore impairment of investments in a subsidiary. Nevertheless, the full-year FY24 earnings per share (EPS) was robust at ₹125, analysts observed.

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Morgan Stanley noted that Indian fuel refiners, including BPCL, demonstrated strong quarterly earnings, signalling a shift toward higher profitability in FY24. BPCL notably excelled in margin performance, while HPCL increased its market share in fuel.

BPCL also achieved an average ethanol blending of 11.69% in FY24, peaking at 12.15% in the fourth quarter. The company expanded its network by adding 308 petrol pumps and 323 CNG stations, bringing its total networks to 21,840 and 2,031 respectively.

G Krishnakumar, chairman and managing director of BPCL, announced a planned capital outlay of ₹1.7 lakh crore over the next five years to fuel growth and create long-term value for shareholders. BPCL aims to expand its refining capacity from 35.3 million tonnes per annum to 45 million tonnes and to add 4,000 new fuel stations by FY29.

Price Action: BPCL shares were trading 3.83% higher at ₹614.80 on Friday midday.

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