BPCL vs IOC
Side-by-side comparison of Bharat Petroleum Corporation Ltd. and Indian Oil Corporation Ltd.. Descriptive only — not investment advice.
Bharat Petroleum Corporation Ltd.
Energy
Quality Score: 60/100
Indian Oil Corporation Ltd.
Energy
Quality Score: 49/100
At a glance
| Metric | BPCL | IOC |
|---|---|---|
| Quality Score | 60/100 | 49/100 |
| P/E (trailing) | 4.9 | 4.5 |
| Forward P/E | 7.5 | 7.9 |
| ROE | +28.5% | +21.0% |
| Profit margin | +5.7% | +5.4% |
| Debt-to-equity | 54.33 | 58.45 |
| Dividend yield | +6.71% | +7.13% |
| 1Y price return | -1.7% | +4.3% |
| From 52w high | -24.2% | -24.9% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.58 | 2.55 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Bharat Petroleum Corporation Ltd. (BPCL) is an Indian state-owned oil marketing company (OMC) trading at ₹296.85, below both its 50-DMA (₹297.27) and 200-DMA (₹329.32) and 24.2% off its 52-week high. The company reported Q4 FY26 consolidated PAT of ₹5,625 crore, up 28% YoY, on revenue growth of 6%, while carrying a debt-to-equity ratio of 54.33 — a leverage structure characteristic of large OMCs but sensitive to crude price and policy risk. At a trailing PE of 4.91 and dividend yield of 6.71%, BPCL ranks 2nd on both PE and quality score among its 6 Energy sector peers.
Indian Oil Corporation (IOC) is a state-owned oil refining and marketing company trading at ₹140.24 with a trailing PE of 4.54x and a dividend yield of 7.13%. Q4FY26 net profit surged 57–81% year-on-year, yet the stock trades below both its 50-DMA (₹141.68) and 200-DMA (₹151.32), 24.85% off its 52-week high. The company carries a debt-to-equity of 58.4 and has generated FCF in only 2 of the available fiscal years.
Pros
- ✓Highest ROE among 6 Energy peers at 28.47%, ahead of Coal India (28.12%), ONGC (12.70%), Reliance (9.14%), GAIL (8.69%), and IOC (20.97%).
- ✓5-year earnings CAGR of 28% and free cash flow positive in 4 of the available persistence years, alongside a falling debt trend.
- ✓Dividend yield of 6.71% is among the most significant income distributions in the large-cap Energy space, supported by Q4 FY26 profitability.
- ✓Second-lowest trailing PE (4.91) in the 6-stock Energy peer group, with only IOC (4.54) trading cheaper on this metric; forward PE of 7.48 reflects a modest step-up from trailing earnings.
- ✓Trailing PE of 4.54x is the lowest among the 6 Energy peers tracked, with ONGC at 8.0x, Coal India at 9.4x, GAIL at 14.2x, and Reliance at 22.1x — IOC trades at a significant discount to the sector median.
- ✓Dividend yield of 7.13% alongside Q4FY26 consolidated profit up 57–81% year-on-year and a declared final dividend of ₹1.25 per share for Q4FY26.
- ✓ROE of 20.97% ranks 3rd among 6 Energy peers — above Reliance (9.14%), GAIL (8.69%), and ONGC (12.7%), though behind Coal India (28.12%) and BPCL (28.47%).
- ✓Revenue growth of 6.7% over 5 years with a recent Q4 21% EPS beat versus analyst estimates, suggesting near-term earnings momentum has exceeded modelled expectations.
Cons
- ✗Debt-to-equity of 54.33 is exceptionally high for a non-financial company; interest cost exposure and capex obligations (including the Mozambique LNG project at 42% completion) add to balance sheet risk.
- ✗Trailing profit margin of 5.68% leaves limited buffer against crude price swings or government-mandated retail price caps — a margin structure that has historically compressed sharply in adverse policy environments.
- ✗ROE has exceeded 15% in only 3 of the persistence window years, indicating the current 28.47% ROE may not represent a durable baseline; earnings consistency score stands at 61.
- ✗Price has declined 23.1% over 3 months and 1.69% over 1 year, trading below both key moving averages (50-DMA ₹297.27, 200-DMA ₹329.32) with no identified near-term technical catalyst.
- ✗Debt-to-equity of 58.4 is structurally elevated for a non-bank company; FCF has been positive in only 2 of the available fiscal years, limiting the company's ability to reduce leverage organically.
- ✗Earnings and quality consistency is low: consistency score of 39/100, ROE above 15% in only 2 of available years — the earnings improvement may reflect cyclical refining margin expansion rather than a durable shift in capital returns.
- ✗Quality score of 49 ranks 4th of 6 Energy peers, and the forward PE of 7.90 versus trailing PE of 4.54 implies the consensus model embeds a meaningful earnings decline from the current Q4 level.
- ✗Price is below both the 50-DMA (₹141.68) and 200-DMA (₹151.32); the stock has declined 22.41% over 3 months despite positive earnings news, with support at ₹130.22–₹130.53 and resistance at ₹148.34–₹149.30.
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