The Board of Directors takes pleasure in presenting its Report
on the performance of Bharat Petroleum Corporation Limited
(BPCL) for the year ended March 31, 2026.

PERFORMANCE OVERVIEW
Group Performance

In FY 2025-26, the aggregate refinery throughput of BPCL's
refineries at Mumbai, Kochi and Bina was 41.15 Million Metric
Tons (MMT) as compared to 40.51 MMT in FY 2024-25. The
BPCL Group ended the year with product sales of 55.72 MMT
(comprising domestic market sales of 54.18 MMT and export

sales of 1.54 MMT), as compared to 53.63 MMT (comprising
domestic market sales of 52.40 MMT and export sales of
1.23 MMT) in the previous fiscal year 2024-25. The growth
in physical parameters is mainly on account of increase in
demand of petroleum products.

In FY 2025-26, the Group achieved Gross Revenue from Operations
of I 5,22,820.41 crore as compared to I 5,00,517.48 crore
in FY 2024-25. The Net Profit attributable to BPCL stood at
I 25,843.45 crore in FY 2025-26 as against I 13,336.55 crore in
the previous year. The Group has recorded Earnings per Share
of I 60.49 per share in the current year as against I 31.21 per
share in FY 2024-25.

BPCL achieved Gross Revenue from Operations of
I 5,22,668.25 crore in FY 2025-26 as compared to
I 5,00,371.25 crore in FY 2024-25. The Profit before Tax
for the financial year was I 31,104.00 crore as compared
to I 17,664.33 crore in FY 2024-25. After providing for
Tax (including Deferred Tax, Short/(Excess) provision
for previous years) of I 7,800.78 crore, as against
I 4,389.07 crore during the previous year, the Profit after
Tax for the fiscal year stood at I 23,303.22 crore as against
I 13,275.26 crore in FY 2024-25.

Profit for the current year is higher as compared to the previous
year mainly due to increase in refining margins during the year.

Internal Generation after adjusting Dividend, Depreciation and
Deferred Tax during the year was higher at I 20,159.63 crore as
against I 13,849.28 crore in FY 2024-25, mainly on account of
the higher Profit after tax.

The Basic and Diluted Earnings per Share amounted to I 54.54
per share for FY 2025-26 as compared to I 31.07 per share for
FY 2024-25. The Basic and Diluted Earnings per Share is after
adjustment of "BPCL Trust for Investment in Shares".

BPCL's contribution to the exchequer by way of Taxes, Duties and
Dividend during FY 2025-26 amounted to I 1,62,294.73 crore as
against I 1,48,347.60 crore in the previous year.

As on March 31, 2026, BPCL's total equity stands at
I 95,232.74 crore as against I 80,960.09 crore for the
previous year.

Dividend

The Board of Directors has declared and distributed two Interim
Dividends during FY 2025-26 totaling I 17.50/- per share
amounting to I 7,592.38 crore (i.e. @175% of the paid up share
capital) on the paid up share capital of I 4,338.50 crore. The
Board of Directors has not recommended any Final Dividend for
FY 2025-26.

As per Regulation 43A of the Securities and Exchange Board
of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 the top thousand listed entities shall
formulate a Dividend Distribution Policy. Accordingly, Dividend
Distribution Policy has been adopted to set out the parameters
and circumstances that will be taken into account by the Board in
determining the distribution of Dividend to its shareholders and/
or retaining the profit into the business. The policy is available
on the Company's website athttps://www.bharatpetroleum.in/
bharat-petroleum-for/investors/disclosure-under-regulation-
46-and-62-of-sebi-lodr-regulations/ddp%20final%20file.pdf

Transfer to Reserves

Out of amount available in Retained Earnings, an amount of
I 10,000 crore has been transferred to General Reserve.

MATERIAL CHANGES AND COMMITMENTS
AFFECTING THE FINANCIAL POSITION OF
THE COMPANY BETWEEN THE END OF THE
FINANCIAL YEAR AND THE DATE OF THE
REPORT

Subsequent to March 31, 2026, continuing geopolitical
developments and uncertainties in the Middle East region have
contributed to volatility in global energy markets, including
fluctuations in crude oil prices, freight rates, insurance costs
and foreign exchange movements. Developments affecting
key international energy trade routes and supply chains have
also influenced crude oil, LPG and LNG sourcing dynamics and
refining economics during the period.

The Company's refining, marketing, gas and distribution
operations have continued uninterrupted in order to support
energy requirements across its areas of operation. During the
period, the Company continued to import LPG as required to
meet domestic demand, notwithstanding elevated import
premiums and volatile market conditions. Simultaneously,
optimization of refinery operations and sourcing strategies

contributed towards strengthening domestic LPG availability
and reducing overall dependence on imports.

The Company has continued to operate its refineries, LPG
bottling plants, gas business, retail network and other key
business units in line with operational requirements while
ensuring continuity of supply of petroleum products and gas.
The Company has also coordinated with Government authorities
and relevant stakeholders to support continuity of logistics and
energy supply operations.

The Company continues to closely monitor developments
relating to crude oil and LNG sourcing, commodity price
movements, freight costs, shipping availability, foreign
exchange fluctuations and downstream demand trends. To
strengthen supply resilience and mitigate potential disruptions,
the Company has undertaken measures towards diversification
of crude oil, LPG and LNG sourcing, including enhanced
procurement flexibility, portfolio optimization and evaluation of
alternative supply arrangements from diversified geographies.

Based on the assessment carried out up to the date of this
Report, the Company does not presently anticipate any material
adverse impact on the continuity of its operations, asset
base or overall financial position. The Company continues to
monitor developments and undertake appropriate operational,
commercial and risk-mitigation measures, as necessary.

Except as stated above, no material changes and commitments
affecting the financial position of the Company have occurred
between the end of the financial year and the date of this Report.

Borrowings

Total Borrowings of the Company as on March 31, 2026
stood at I 10,480.09 crore as against I 23,277.72 crore as on
March 31, 2025.

Deposits from Public

The Company has not accepted any deposit from the public
during the year. The amount of deposits, matured but unclaimed,
at the end of the year was Nil.

Capital Expenditure

The total group Capital Expenditure of the company during the
year was I 21,372.47 crore as compared to I 15,709.39 crore
during the previous year.

The Company has entered into a Memorandum of Understanding
(MoU) with Government of India for the purpose of performance
assessment. Capital Expenditure incurred by the Company
and its proportionate share of Capital Expenditure by its
Subsidiaries (Group), JVCs and Associates during the year is
I 23,491.95 crore.

Comptroller and Auditor General of India's
(C&AG) Audit

The Comptroller and Auditor General of India's (C&AG) comment
upon or supplement to the Statutory Auditors' Report on the
Accounts for the year ended March 31, 2026 is appended as
Annexure E.

As on March 31, 2026, there are nine pending published paras
related to the C&AG audit which are appended as Annexure F.

REFINERIES

Over the past year, the global oil and refining landscape
continued to evolve amid shifting demand dynamics and
geopolitical developments, including tensions in the US-Iran
region, which intermittently influenced supply expectations
and market sentiment. Crude prices remained relatively range-
bound compared to earlier periods of heightened volatility, even
as periodic disruptions and uncertainty persisted. Meanwhile,
new refining capacities, particularly in Asia and the Middle East,
exerted pressure on product cracks, leading to a more normalized
margin environment. These developments have underscored the
need for greater operational agility, cost competitiveness, and
continuous innovation across refining operations.

Against this backdrop, BPCL Refineries have delivered resilient
performance, demonstrating strong operational reliability,
improved efficiency, and sustained focus on value maximization.
The refineries have further strengthened their competitive
positioning through digital transformation, energy optimization,
and strategic investments in petrochemicals and sustainability,
while continuing to advance long-term growth and transition
priorities. Safety and sustainability continue to remain the
cornerstones of our operations. During the year, all three refineries
achieved zero Lost Time Accidents (LTA) for employees, reflecting
the strong safety culture embedded across our organization.
Additionally, focused contractor safety management initiatives,
including rigorous safety training, competency development,
enhanced supervision, and strict adherence to safe work
practices, have further strengthened our safety performance
and reinforced a culture of shared responsibility across all
stakeholders. This accomplishment highlights our unwavering
commitment to robust systems, proactive risk management, and
the guiding principle of 'Safety First, Safety Must'.

BPCL Refineries recorded their highest-ever crude throughput
of 41.2 MMT in FY 2025-26, surpassing the previous record
of 40.5 MMT achieved in FY 2024-25. This milestone reflects
improved asset utilization, enhanced operational reliability,
and sustained focus on efficiency improvements. The average
capacity utilization reached 116.6%, registering a notable increase
over 115% in the previous year and ranking among the highest in
the industry.

Our Gross Refining Margin (GRM) for FY 2025-26 stood at
11.74 $/bbl and, despite prevailing geopolitical tensions, remained
the highest among Indian PSU Oil Marketing Companies
(OMCs), supported by a strong distillate yield of 84.6%.

This robust performance was driven by strategic crude sourcing,
operational flexibility, and a sustained focus on margin-accretive
product optimization.

During the year, BPCL refineries also introduced six new crude
grades from four different geographies into the processing
slate, further diversifying the crude basket and enhancing the
ability to respond effectively to evolving market dynamics and
feedstock economics.

Aligned with our sustainability agenda, BPCL continued to
implement a wide range of energy efficiency and decarbonization
initiatives across its refineries during FY 2025-26. A total of energy
conservation initiatives undertaken across refineries resulted in a
cumulative reduction of over 40,000 Metric Tons of Oil Equivalent
(MTOE) and more than 1,29,581 Metric Tons of CO2 equivalent
emissions, reflecting sustained focus on energy optimization and
carbon management. BPCL made strong progress in expanding its
renewable energy portfolio with the commissioning of a 71 MW
solar power plant at Prayagraj, supplying green power to refineries
and contributing substantially to emission reduction.

Kochi Refinery (KR) achieved a breakthrough in circular economy
initiatives with the commissioning of the 150 TPD Municipal Solid
Waste (MSW)-based Compressed Bio-Gas (CBG) plant, which is
expected to play a vital role in sustainable waste management,
renewable energy generation, and environmental improvement
in surrounding areas. BPCL also continues to enhance renewable
energy adoption, supported by ongoing wind power projects
and expanding clean energy infrastructure. Complementing
these efforts, sustained focus on resource conservation
through water management, digital monitoring of emissions,
and environmental compliance has further strengthened BPCL's
sustainability framework. These initiatives collectively reinforce
BPCL's commitment to a low-carbon future, while advancing its
long-term vision of becoming a sustainable and future-ready
energy Company.

BPCL's strategic thrust on petrochemicals continues to gather
strong momentum. The Bina Petrochemical Refinery Expansion
Project (BPREP) and the 400 KTPA Polypropylene project at
Kochi are progressing in line with planned timelines, with targeted
commissioning in May 2028 and October 2027, respectively.
Once completed, these projects will significantly augment BPCL's
refining and petrochemical capacities, enabling the Company to
cater to the growing domestic demand for polymers and other
value-added petrochemical products. Additionally, the Board has
approved pre-project activities for the Andhra Pradesh Refinery
and Petrochemical Project near Ramayapatnam Port, with ~6,000
acres of land sanctioned by the Government of Andhra Pradesh to
set up a 9 MMTPA refinery-cum-petrochemical complex. Process
licensor selection is currently underway in coordination with the
Detailed Feasibility Report (DFR) consultant, while key technical
studies and site-related surveys have been completed to support
detailed engineering and cost estimation. On the statutory front,
major milestones have been achieved, including successful
public hearing, completion of Environmental Impact Assessment
(EIA), Rapid Risk Assessment (RRA) and Coastal Regulation

Zone (CRZ) studies, issuance of No Objection Certificate (NOC)
by the Andhra Pradesh Pollution Control Board (APPCB), and
recommendation for Coastal Regulation Zone (CRZ) clearance
by the Andhra Pradesh Coastal Zone Management Authority
(APCZMA). Land acquisition is progressing steadily, with
3,383 acres already registered, keeping the project firmly on track
towards execution.

BPCL's refineries continued to demonstrate a strong focus on
innovation and operational excellence during FY 2025-26. At
Mumbai Refinery (MR), significant advancements were achieved in
process optimization and product diversification, with successful
implementation of new process improvements and specialty
product enhancements, contributing to improved operational
efficiency and value realization. Kochi Refinery (KR) strengthened
its processing flexibility and efficiency through commissioning
of key process improvements such as advanced crude blending
systems and optimization initiatives, enabling better crude
selection and enhanced product yield. At Bina Refinery (BR),
operational resilience was further strengthened through
enhancements in process reliability and utilities optimization,
along with continued progress in cleaner fuel adoption and
energy efficiency measures, contributing to improved overall
performance and reduced energy intensity.

Across all refineries, focused initiatives toward process
optimization, energy efficiency, and introduction of new product
streams have led to enhanced yields, improved reliability, and
better utilization of assets. These efforts collectively reflect
BPCL's commitment to driving innovation through process
excellence and operational improvements, enabling sustainable
and competitive growth.

Digital technology continues to serve as a key enabler of
operational excellence across BPCL refineries, strengthening
decision-making, reliability, and safety performance. During
FY 2025-26, the Company made significant strides under
its digital transformation initiatives, including large-scale
deployment of AI and Machine Learning-based predictive
analytics solutions across ~90 critical equipment, enabling early
detection of anomalies and potential failures, thereby improving
asset reliability and reducing unplanned downtime. Advanced
Ultra-Critical Video Analytics (UCVA) solutions were further
strengthened and expanded, leveraging artificial intelligence
for real-time monitoring of safety compliance and critical field

Performance of Refineries

operations, with seamless integration into the Work Permit
System. BPCL also continued to enhance its capabilities in
immersive technologies through deployment of Virtual Reality
(VR) training modules and development of Augmented Reality
(AR)-based use cases, enabling effective training for low-
frequency, high-impact scenarios and improving workforce
preparedness. Operations Driven Reliability (ODR) initiatives were
further integrated with digital platforms, enabling comprehensive
digitization of field data, real-time abnormality detection,
and structured tracking of equipment performance, thereby
enhancing reliability and operational discipline across refineries.
In addition, deployment of GenAI and LLM-based applications,
including conversational assistants and intelligent dashboards,
has enabled faster access to knowledge, improved analytics, and
enhanced decision support capabilities. Digital infrastructure and
cybersecurity frameworks were also significantly strengthened,
with expansion of 24x7 Operational Technology (OT) Security
Operations Centers (SOC), implementation of advanced
Information Technology - Operational Technology (IT-OT)
integrated cybersecurity architecture, and adoption of secure
cloud-based platforms, ensuring resilient and secure operations
across refineries. Complementing this, initiatives such as Real¬
Time Location Systems (RTLS), automated dashboards, and digital
applications for turnaround and asset monitoring have further
improved operational visibility and efficiency.

While FY 2025-26 has been marked by resilient performance and
continued strategic progress, it also reflects the evolving dynamics
of the global refining landscape. Geopolitical developments,
including intermittent tensions in the US-Iran region, have
influenced supply expectations and market sentiment, while
refining margins have largely moderated toward more normalized
levels. Sustained competitiveness in this environment will
require sharper focus on innovation, supply chain agility, energy
integration, and product portfolio diversification.

BPCL Refineries remain well-positioned to address these
challenges, supported by a strong culture of operational
excellence, technological advancement, and commitment to
sustainability. As we look ahead, we continue to reinforce our
focus on delivering long-term value to stakeholders while aligning
with the nation's priorities of energy security, Atmanirbharta, and
a sustainable energy transition.

MARKETING

FY 2025-26 was marked by significant achievements for BPCL's
marketing business. Despite intense competition in the industry,
particularly from private players, BPCL recorded its highest-
ever domestic market sales of 54.18 MMT, reflecting a growth
of 3.4%. The Company's marketing Strategic Business Units
(SBUs)—Retail, LPG, Lubes, Aviation, Industrial & Commercial
(I&C), and Gas—delivered a strong performance, achieving the
highest-ever market share in Motor Spirit (MS), Commercial LPG,
Packed LPG, and Aviation Turbine Fuel (ATF). Among the public
sector oil marketing companies (PSU OMCs), BPCL's market
share stood at 27.27% as on March 31, 2026

A detailed discussion on the performance of the Marketing
function is given in the Management Discussion & Analysis
Report (MDA).

PIPELINES

The Company owns a multi-product pipeline network of
3962 KM with a design capacity of 23.5 MMTPA and 937 KM of
crude pipeline with a design capacity of 7.8 MMTPA.

During the year, 425 KM KHPL (Krishnapatnam Hyderabad
Multiproduct Pipeline) was commissioned in record time by
pumping the first HSD parcel from Krishnapatnam Installation.

Mumbai Manmad Bijwasan Pipeline (MMBPL), Mumbai Uran LPG
Pipeline (MUPL), and Bina Panki Pipeline (BPPL) achieved their
highest-ever throughput of 7965 TMT, 847 TMT, and 2100 TMT,
respectively. Pipeline re-routing was successfully completed
across the MMBPL Mej River at Ch 953, restoring the Kota-Piyala
section within a record time of 60 days, as against the scheduled
time of 105 days.

All standard operating procedures were strictly followed,
resulting in 'NIL' fatalities and 'NIL' Lost Time Accidents (LTA).
Pipelines business remains at the forefront of ensuring the
security and safety of its assets. A total of 12 tapping attempts
were successfully foiled due to effective Pipeline Intrusion
Detection System (PIDS) monitoring. In a first-of-its-kind
initiative by the company, a joint exercise with the Territorial
Army (with over 90 Army personnel) was conducted for MMBPL
in the Bharatpur ROU area.

Pipelines Division of the Company has launched BPCA 2.0,
an advanced, fully integrated digital platform for end-to-end
management of pipeline crossing NOCs. The initiative aims
to streamline workflows, improve transparency, ensure better
tracking and monitoring of NOCs, and deliver an enhanced
and user-friendly experience for internal as well as third-party
users. Pipelines entity leveraged drone technology for pipeline
surveillance and successfully completed the drone survey across
all pipeline regions, covering around 787 KM of pipeline length.

The OFC Leasing Initiative—a first-of-its-kind revenue initiative
in Pipelines—unlocked I 84.65 crore of additional wallet capital,
establishing a new revenue stream for Pipelines.

To promote the culture of People First, the "Saha Yatra"
program was conducted for 889 frontline contract workers
across all regions to honor their unwavering commitment and
deepen engagement.

MAJOR PROJECTS

Details of major ongoing projects during the year are given
below. Approved project cost indicated for each project is net
of input tax credit.

•    Bina Petchem and Refinery Expansion Project (BPREP)

The project involves the installation of a Dual Feed Cracker
to produce 1200 Kilo Tons Per Annum (KTPA) of Ethylene,
downstream units for the production of 1150 KTPA of
Polyethylene [High-Density Polyethylene (HDPE) + Linear
Low-Density Polyethylene (LLDPE)] and 550 KTPA of
Polypropylene (PP), as well as liquid chemicals such as
Benzene, Toluene, Xylene, etc. This includes associated
units, utilities, off-sites, and the expansion of the Refinery
capacity to approximately 11 Million Metric Tons Per Annum
(MMTPA). As on March 31, 2026, the project achieved an
overall progress of 23.3% and is scheduled for completion in
May 2028. The project cost is I 43,367 crore.

•    Petro Resid Fluidized Catalytic Cracking (PRFCC) Unit and its
associated facilities at Mumbai Refinery

Mumbai Refinery (15 MMTPA) is implementing a state-of-the-
art Petro Resid Fluidized Catalytic Cracker (PRFCC) unit to
replace two aging units and enhance reliability, safety, and
operational efficiency. The project also includes a revamp
of the existing Hydrocracker, increasing its capacity from
1.97 MMTPA to 3.07 MMTPA.

The project will enable the processing of higher-sulfur crude,
reduce heavy fuel oil production, and convert residue into
high-value products such as propylene, Motor Spirit (MS) and
High Speed Diesel (HSD). It will also help reduce emissions,
increase transportation fuel production by approximately
1.3 MMTPA, and support petrochemical diversification
through the production of 440 KTPA of chemical-grade
propylene, along with associated utility and process upgrades.

As on March 31, 2026, the project achieved an overall progress
of 3.8% and is scheduled for completion in September 2029.
The approved cost of the project is I 13,626 crore.

•    Polypropylene Unit at Kochi Refinery

The project involves setting up a 400 Kilo Tons Per Annum
(KTPA) Polypropylene Unit along with associated facilities and
revamping the Petro Fluid Catalytic Cracking (PFCC) Unit for
production of Homo Grade Polypropylene at Kochi Refinery.
The approved project cost is I 4,850 crore, with scheduled
completion in October 2027. The project achieved an overall
progress of 28.5% as on March 31, 2026.

•    Coprocessing facility in Kerosene Hydro-Treater (KHT)
Unit for production of Sustainable Aviation Fuel (SAF) at
Mumbai Refinery

The Company is establishing a Sustainable Aviation Fuel
(SAF) co-processing facility at its Mumbai Refinery by
integrating renewable feedstock into the existing Kerosene
Hydro-Treater (KHT) unit. The project aims to meet upcoming
blending mandates and reduce carbon emissions from the
aviation sector. By leveraging the existing infrastructure,
the project will accelerate the Company's decarbonization
efforts and reinforce its leadership in sustainable energy.
The total approved cost of the project is I 677 crore, with
scheduled phase 1 completion by December 2026 and phase
2 by December 2027.

•    GAS Turbine GT-3 upgrade from frame 6B to 6B.03

The Company is upgrading the GT-3 Gas Turbine from Frame
6B to the advanced 6B.03 standard at Mumbai Refinery.
The modernization project aims to increase power output,
enhance fuel efficiency, and improve operational reliability.
By incorporating advanced materials and improved cooling
technologies, the upgrade is expected to reduce maintenance
downtime and ensure long-term energy security for refinery
operations. The total approved cost of the project is
I 218 crore, with scheduled completion in July 2027.

•    POL and LOBS installation with receipt pipelines at
Rasayani, Maharashtra

The project involves the construction of a 22-inch POL
pipeline and a 10-inch Lube Oil Base Stock (LOBS) /
De-Aromatized Solvent (DAS) pipeline spanning 40 km
from Mumbai Refinery to Rasayani. In addition, the project
includes the construction of a Base Oil Terminal with storage
tank capacity of 82,600 KL and a POL Installation with
product storage capacity of approximately 1.84 lakh KL at
Rasayani. The project achieved an overall physical progress
of 79.1% as on March 31, 2026. The approved project cost is
I 2,585 crore, with scheduled completion by September 2026.

•    Irugur - Devangonthi Multiproduct Pipeline

The project involves laying a 352 km long, 16-inch diameter
multiproduct cross-country pipeline with a throughput
capacity of 3.5 MMTPA from Irugur (Tamil Nadu) to
Devangonthi (Karnataka). The approved cost of the project
is I 1,725 crore. The project achieved an overall physical
progress of 81.6% as on March 31, 2026, and is scheduled
for completion in September 2026.

•    Augmentation of CCKPL and IDPL Pipelines Capacity along
with Setting up of Palakkad Top, Kerala

The project involves augmenting the capacity of the Cochin-
Coimbatore-Karur Pipeline (CCKPL) from 3.3 MMTPA to
7 MMTPA, along with associated facility enhancements.
It includes the implementation of the 16-inch Irugur-
Devangonthi Pipeline (Phase 2), designed for a capacity of
3.5 MMTPA, with provision for future expansion up to 5 MMTPA

through the addition of intermediate pumping facilities. The
project also entails the development of the Palakkad POL
Terminal, which will draw a tap-off from the CCKPL. Land
for this terminal is secured from M/s. KINFRA to establish
retail POL facilities, including an intermediate pumping
station at Palakkad. The estimated cost of the project is
I 1,130 crore. The project has achieved overall progress of
34.1% as on March 31, 2026 and it is scheduled for completion
in August 2028.

•    ATF Pipeline from Malkapur (Hyderabad) POL Installation to
Hyderabad International Airport

The project involves the construction and installation of a
56.2 km, 14-inch diameter Aviation Turbine Fuel (ATF) pipeline,
connecting the Company's Malkapur POL Installation to the
Hyderabad International Airport. As on March 31, 2026,
the project achieved an overall progress of 24.1% and is
scheduled for completion in September 2027. The project
cost is I 215 crore.

•    50 MW Wind Power Plants in Maharashtra & Madhya Pradesh

The projects involve setting up 50 MW (±5%) wind power
plants in Maharashtra and Madhya Pradesh to cater to the
energy needs of the Mumbai Refinery and Bina Refinery,
respectively. These initiatives aim to expand the renewable
energy portfolio and reduce CO2 emissions. Each project
has an estimated cost of I 483.14 crore and is scheduled for
completion by April 2027. Project activities are in progress
for both the plants.

•    Common User Facility POL Terminal at Sadashibpur
(Meramundali), Odisha

The project envisages setting up a POL Terminal at
Sadashibpur (Meramundali), Odisha on Common User Facility
(CUF) basis for PSU OMCs (IOCL, BPCL & HPCL), with BPCL
as lead company, to meet the demands of Central / North
Odisha economically. Currently, PSU OMCs do not have any
depot / terminal located centrally, and large volumes are met
through long distance road movement from Paradeep Coastal
Terminal. The approved cost of the project is I 393.54 crore.
The project has achieved overall progress of 76.7% as on March
31, 2026 and scheduled for completion in September 2026.

•    LPG plant at Hathua, Dist. Gopalganj, Bihar

The proposed LPG bottling plant with a rail unloading
facility in Hathua, District Gopalganj, Bihar, will enhance the
company's bottling capacity to meet the increasing LPG
demand in Bihar and supplies to nearby LPG bottling plants.
The project cost is I 340 crore, with a scheduled completion
date of March 31, 2027. As on March 31, 2026, the project
achieved overall progress of 48%.

•    Kanpur LPG Bottling Plant

Construction of an LPG Bottling Plant featuring dual
24-station electronic carousels and comprehensive allied
facilities. The project includes a robust fire protection

system designed in full compliance with OISD STD 144
and its associated regulatory standards. The project cost is
I 202 crore, with a scheduled completion date of
September 30, 2027. As on March 31, 2026, the project
achieved overall progress of 50%.

•    Bulk Loading Hub - Kanpur

Construction of a railway gantry for bulk unloading and a
tank lorry gantry for bulk loading, including comprehensive
allied infrastructure such as pumping systems and dedicated
firefighting facilities. The project cost is I 186 crore, with a
scheduled completion date of September 30, 2027. As on
March 31, 2026, the project achieved overall progress of 50%.

•    Pre-project - AP Refinery and Petrochem Complex Phase 1

The Company is initiating Phase 1 of a Greenfield Refinery and
Petrochemical Complex in Andhra Pradesh. This pre-project
phase lays the groundwork for a world-class, integrated
facility designed to bridge the regional demand-supply gap
for fuels and high value petrochemicals. The project cost is
I 2,100 crore for carrying out pre-project activities.

•    City Gas Distribution (CGD) Projects

The Company has been authorized by the Petroleum
and Natural Gas Regulatory Board (PNGRB) to lay, build,
operate, and expand City Gas Distribution (CGD) networks in
26 Geographical Areas (GAs), covering 81 districts across
the country. The authorization was granted under the
6^th, 9^th, 10^th, 11^th, 11A, and 12^th rounds of bidding for a
period of 25 years.

The GA awarded under the 12^th round is currently at the
Detailed Feasibility Report (DFR) finalization stage. In the
remaining 25 GAs, project activities are under implementation
with an approved cumulative cost of I 47,688 crore.

Project activities across all GAs are progressing in line with
the Minimum Work Program (MWP) targets stipulated by
PNGRB. The MWP targets have already been achieved in four
GAs from the 6^th round and one GA from the 9^th round, while
work in the remaining 20 GAs is progressing as per schedule.

PROJECTS COMPLETED IN FY 2025-26

•    Multiproduct Pipeline from Krishnapatnam Coastal
Terminal to POL Terminal at Malkapur near Hyderabad

The project involved the construction of a 455 km long,
16-inch diameter multi-product pipeline with a throughput
capacity of 4.4 MMTPA, running from Krishnapatnam Coastal
Terminal to the POL Terminal at Malkapur near Hyderabad.
Additionally, the project included the construction of
additional tankages at Krishnapatnam and Ongole. The
approved cost of the project was I 2,208 crore. The
project was mechanically completed in August 2025 and
commissioned on February 24, 2026.

•    Augmentation of Cryogenic Facilities at Uran LPG Import
Terminal in Maharashtra

The project envisaged debottlenecking and augmentation
of cryogenic facilities at Uran to meet future import
requirements and ensure uninterrupted and smooth supply
chain operations to cater to the growing LPG demand. The
approved cost of the project was I 1,630 crore. The project
was mechanically completed in December 2025.

•    Integrated 2G +1G Ethanol Bio-refinery at Bargarh, Odisha

To meet the blending targets outlined in the National
Biofuel Policy 2018, BPCL established an integrated 2G
and 1G Bio-Ethanol Plant at Bargarh, Odisha, with a total
ethanol production capacity of 200 kiloliters per day. The
ethanol produced at the facility is intended for blending
with motor spirit (MS). The project, with an approved cost of
I 1,557 crore, saw the commissioning of the 1G plant in
October 2025 and the 2G plant in March 2026.

•    Replacement and Extension of Jetty Pipelines for
Kochi Refinery

The project envisaged the replacement of old Jetty product
pipelines for black and white oil and the laying of new pipelines
to enhance tanker loading rates, reduce tanker turnaround
time, and ensure uninterrupted product evacuation from KR
through coastal routes. The approved cost of the project was
I 372 crore. The project achieved mechanical completion in
February 2026.

•    Installation of Independent De-Aromatized Solvents (DAS)
unit at Mumbai Refinery

The project envisaged setting up an independent train of
DAS U nit with a capacity of 200 TMTPA to meet the growing
demand for various grades of specialty DAS products such
as D40, D60, D110 and D130, in addition to D80 grade.
DAS, which were largely imported, found extensive use in
consumer products such as household insecticides, mosquito
repellents and aerosols. The approved cost of the project was
I 405 crore. The project was mechanically completed on
February 10, 2026 and commissioned on March 17, 2026.

•    Common User Facility POL Terminal at Jammu

The project involved the construction of a new POL Terminal
at Jammu on a Common User Facility (CUF) basis for PSU
Oil Marketing Companies (IOCL, BPCL & HPCL), with BPCL
as the lead company. The new facility replaced the existing
old depots of the OMCs and strengthened the marketing
logistics infrastructure in the Union Territories of Jammu &
Kashmir and Ladakh. The upgrade catered to the present
and future volume demands of the entire J&K and Ladakh
region, including the requirements of the Defence Forces. The
approved cost of the project was I 706 crore. The project was
mechanically completed in January 2026.

•    Lube Oil Blending and Filling Plant at Rasayani, Maharashtra

The project envisaged the construction of fully automated
and efficient Lube Oil Blending and Filling Plant with modern
processing facilities at Rasayani as a re-sitement of existing
Wadilube plant. The approved cost of the project was
I 526.56 crore. The project was mechanically completed in
December 2025 along with commissioning of Phase 1.

•    71 MWp (DC) Solar Power Project at Prayagraj,
Uttar Pradesh

Under the Net Zero initiative, the company completed a
71 MWp (DC), 52 MW (AC) solar power project in Prayagraj.
The approved project cost was I 308.3 crore. The project was
mechanically completed in August 2025 and commissioned
in December, 2025.

RESEARCH AND DEVELOPMENT (R&D)

The Company continued to demonstrate a strong commitment
to Research and Development (R&D) during FY 2025-26
through its Corporate Research & Development Centre (CRDC),
Greater Noida, and the Product & Application Development
Centre (PADC), Mumbai. R&D initiatives were aligned with
the Company's strategic priorities of business growth,
sustainability, energy transition, decarbonization, self-reliance,
and operational excellence. Significant progress was achieved
across key domains, including Carbon Capture, Utilization and
Storage (CCUS), Green Hydrogen, Biofuels, Circular Economy,
Petrochemicals, Specialty Chemicals, Advanced Materials,
Refinery Process Optimization, Digital Technologies, and
Lubricants. These initiatives are aligned with the national vision
of 'Aatmanirbhar Bharat' and support BPCL's long-term Net Zero
ambitions and competitiveness.

At India Energy Week 2026, the Company showcased two
landmark indigenously developed innovations. These included
an electrolyzer-free green hydrogen production system based
on an electro-mechano-chemical redox process enabling
decentralized hydrogen generation using raw water, and Bharat-
Shakti, an advanced LPG formulation delivering improved
thermal performance, lower emissions, and enhanced fuel
efficiency. These innovations underscore BPCL's commitment
to sustainable energy solutions and technological self-reliance.

During the year, notable progress was achieved in the areas of
CCUS, Green Hydrogen, Biofuels, Specialty Chemicals, Circular
Economy, and Digital Technologies. A key milestone included
the initiation of a 15 TPD CO2 capture demonstration unit at
Bina Refinery. The Company also advanced technologies for
the conversion of CO2 into methanol, formic acid, synthetic
natural gas (SNG), and Sustainable Aviation Fuel (SAF),
alongside progress in energy-efficient carbon capture solutions
using HiGee absorption and Simulated Moving Bed (SMB)
technologies. Laboratory-scale development of electrochemical
technologies for hydrogen production and CO2 conversion was
also successfully demonstrated.

Under the National Green Hydrogen Mission, BPCL
commissioned an indigenous 500 kW alkaline electrolyzer
based on BARC technology at Cochin International Airport,
enabling a 24x7 green hydrogen-powered refueling station
with a production capacity of approximately 240 kg/day.

In the area of refinery optimization and digitalization, the
Company successfully deployed the BPMARRK®-Aspen
HYSYS® Integrated Digital Twin-based Real-Time Optimization
(RTO) solution at Kochi Refinery, expected to deliver significant
economic benefits through enhanced operational efficiency
and real-time process optimization. Further, BPMARRK® 2.0, a
web-based platform for crude assay, yield prediction, and crude
evaluation, was developed and commercialized through services
to external organizations.

BPCL continued to make progress in commercialization of
indigenous technologies. The BharatH2Sep membrane-
based hydrogen recovery technology advanced towards
commercialization, with continuous field operations at Mumbai
Refinery and engineering activities initiated for a commercial-
scale unit. The Basic Design Engineering Package (BDEP) for a
20 KTPA Super Absorbent Polymer (SAP) plant was completed
in collaboration with Engineers India Limited. Additionally,
significant progress was made in developing indigenous refinery
catalysts, FCC additives, dewaxing catalysts, anti-scalants,
corrosion inhibitors, and specialty process additives, contributing
to import substitution and enhanced operational reliability.

The Company strengthened its focus on sustainable fuels
and circular economy solutions. A novel bio-oil co-processing
process in FCC units was developed, enabling improved
gasoline yields without hardware modifications. Progress was
also made in the development of SAF from Used Cooking Oil
(UCO), bio-based isobutanol for diesel blending, and advanced
hydrogen burners. Further initiatives included development of
technologies for biodegradable plastics from distillers' dried
grains with solubles (DDGS), tyre-grade green silica from boiler
ash, and enriched fermented organic manure (e-FOM) from
Compressed Bio Gas (CBG) plants, promoting sustainable
utilization of biorefinery by-products.

In the specialty fuels segment, BPCL successfully developed
and demonstrated X-treme Winter Grade Diesel with an ultra¬
low pour point of -40°C for high-altitude defence applications.
Advanced LPG formulations, including Bharat-Shakti and Winter
Grade LPG, were developed to ensure reliable performance
under extreme climatic and oxygen-deficient conditions.
Field trials validated their superior performance, supporting
commercial deployment.

The Company further strengthened its collaborative
ecosystem with premier academic and research institutions,
including I IT Roorkee, I IT Bombay, I IT (BHU) Varanasi, IISER
Thiruvananthapuram, ICGEB, CSIR laboratories, and NIT Calicut,
among others. These collaborations supported technology
development across carbon capture, catalysis, petrochemicals,
sustainable fuels, biotechnology, energy storage, and waste

valorization. Key outcomes included development of energy
storage materials from petroleum coke, bio-based production
of 1,4-butanediol (BDO), advanced wastewater treatment using
algal photobioreactors, and indigenous catalyst technologies
for Dimethyl Ether (DME) and SAF.

In lubricants, R&D efforts focused on developing advanced
solutions aligned with evolving industry requirements. Key
developments included long-life stationary gas engine oils,
premium mineral-based refrigeration compressor oils, next-
generation motorcycle engine oils, specialized lubricants for
LNG-powered vehicles, long-drain axle oils, synthetic automatic
transmission fluids, long-life greases, and specialized EV fluids
for thermal management and efficiency in electric vehicles.

BPCL's R&D achievements received significant recognition
during the year, including the CII Industrial Intellectual Property
Award 2025, CII Industrial Innovation Award 2025, and CII
Innovation Award 2025 for BPMARRK® 2.0 and K-Model®.
Additional accolades were received for sustainability initiatives,
including Net Zero Retail Outlet, Plastic Waste Geocell Project,
and Bharat FurnoChem initiatives.

During FY 2025-26, the Company filed 22 patent applications
and was granted 7 Intellectual Property Rights (IPRs). The
R&D teams also published 8 technical papers and contributed
4 book chapters.

In addition to the R&D initiatives in the Company, the business
units have undertaken various innovative initiatives in their
constant endeavor to improve processes, boost operational
efficiencies and reduce energy consumption.

Some of the innovation initiatives are detailed below :

BPCL is spearheading innovation across its refineries through
several impactful projects. Various innovation initiatives at
Kochi Refinery are aimed to reduce Green House Gas (GHG)
emissions, improve long term sustainability, enhance efficiency
and operational reliability.

In Mumbai Refinery, the Remote Monitoring and Diagnostic
Services (RMDS) Project is an AI-based predictive analytics
solution, designed for super-critical rotating turbomachinery
through continuous remote monitoring to enhance reliability,
minimize unplanned downtime and optimize maintenance costs.

The Light Diesel Oil (LDO) project at Bina Refinery converts
low-value stream into a marketable fuel thereby improving
refinery flexibility, enhancing margins and strengthening BPCL's
competitive position in fuel markets.

During FY 2025-26, Digital Business continued to strengthen
our digital ecosystem by embedding technology across
customer journeys and core business operations. In LPG, Digital
Business enhanced governance, safety, and consumer trust
through advanced e-KYC, operator-centric digital tools, and
intelligent trip planning, enabling more efficient and reliable
service delivery. Digital Business also introduced WingTip, a
first-of-its-kind integrated digital platform for Aviation, bringing

end-to-end automation and real-time visibility to aviation
fuelling operations. In City Gas Distribution business, Digital
Business advanced the digitalization of the customer lifecycle,
enabling customers to seamlessly onboard, transact, and track
their service journey with greater transparency at every stage.
Across our Retail and Lubricants businesses, digital innovations
strengthened customer engagement through enhanced loyalty
programmes, increased adoption of scan-based rewards, and
frictionless digital interactions, creating more personalised and
rewarding customer experiences.

The total expenditure on R&D activities and innovation initiatives
during the year 2025-26 was I 295.84 crore.

INDUSTRIAL RELATIONS

BPCL continued to foster a stable and progressive industrial
relations environment through sustained engagement,
meaningful dialogue, and close partnership with employee
unions across the organization. The industrial relations climate
remained positive and cooperative, reflecting a shared
commitment towards organizational priorities, operational
excellence and business growth. Trade Unions continued to play
a constructive role by actively partnering with the organization
across various initiatives and supporting efforts aimed at
enhancing operational effectiveness and employee welfare.

The year witnessed a positive and enabling work environment
across locations, facilitating smooth operations and seamless
business continuity. BPCL remained committed to strengthening
a transparent, inclusive, and employee-centric work culture, with
organizational and employee-related matters being addressed
through regular communication, mutual trust and a collaborative
approach to resolution.

CORPORATE SOCIAL RESPONSIBILITY

Guided by its vision of "Energizing Lives," BPCL continues to
extend its i mpact beyond business operations th roug h dedicated
and sustained Corporate Social Responsibility (CSR) initiatives.
The Company's CSR framework is founded on the conviction
that meaningful development should be inclusive, fair, and
sustainable. BPCL remains deeply committed to contributing
to the nation's developmental agenda while strengthening
and uplifting communities, particularly in vulnerable and
underserved areas.

BPCL CSR strategy, reinforced its commitment towards inclusive,
equitable and sustainable development during FY 2025-26
through focused initiatives, aligned with the provisions of
Section 135 of the Companies Act, 2013, Schedule VII thereto,
Sustainable Development Goals (SDGs) and the guidelines
issued by the Department of Public Enterprises (DPE).

The CSR Policy of the Company, approved by the Board of
Directors on the recommendation of the CSR Committee,
outlines the guiding principles and the mechanism for selection,
implementation and monitoring of CSR projects and is available

on the Company's website:https://www.bharatpetroleum.in/
social-responsibility/social-responsibility.aspx.

In FY 2025-26, the Company allocated a portion of its CSR
Budget, amounting to I 160.87 crore (60.21% of the total
CSR expenditure) towards the thematic area of "Health and
Nutrition" as per the guidelines set forth by the Department of
Public Enterprise, in continuation from FY 2024-25. Health &
Nutrition continued to be the dominant CSR thrust area during
the year, consistent with national priorities and DPE guidelines,
with substantial investments made towards strengthening
healthcare infrastructure, improving access to quality
healthcare services, and addressing nutrition and preventive
healthcare needs of vulnerable communities. The Company also
undertook CSR projects across Education, Skill Development,
Community Development, Environmental Sustainability and
other permissible activities under Schedule VII. The projects
were implemented through direct execution as well as through
eligible implementing agencies across multiple States and
Union Territories. The Annual Report on CSR, the composition
of the CSR Committee and a comprehensive overview of the
company's CSR programs is enclosed in Annexure B.

From the overall CSR allocation for the year of I 747.76 crore.
(which is inclusive of interest earned on CSR funds during the
year), an expenditure of I 26717 crore was incurred. Several
CSR projects approved by the Company are multi-year in
nature. Expenditure on such ongoing projects is incurred in line
with defined milestones. An unspent amount of I 240.02 crore
relating to ongoing projects approved for the Financial year
ending March 31, 2026, has been transferred to a dedicated
Unspent CSR Account and will be utilized within the stipulated
timelines in compliance with the Companies Act, 2013.

The Company supported strengthening of government hospitals
and health institutions through provisioning of advanced medical
and diagnostic equipment, dialysis units, oncology and specialty
healthcare support, maternal and child healthcare, cataract and
other corrective surgeries, screening and treatment for cancer,
anemia and sickle cell disease, menstrual hygiene management
and nutrition focused interventions.

For strengthening public healthcare, BPCL supported
the Government's 'TB Mukt Bharat Abhiyaan' through the
deployment of 450 handheld TB screening devices across
Haryana and Maharashtra under the National Tuberculosis
Elimination Program (NTEP). Implemented through the
respective State Health Departments, the project aims to
enhance early detection and diagnosis of tuberculosis, including
drug-resistant TB, particularly in remote and underserved
areas. The WHO-endorsed portable molecular diagnostic
systems enable rapid and accurate testing at PHC and CHC
levels, significantly improving access to timely healthcare.
With an estimated annual screening capacity of over 16 lakh
tests, the initiative is expected to strengthen the public health
infrastructure and contribute meaningfully towards India's goal
of eliminating tuberculosis.

In continuation of the long-standing commitment to cancer
care specifically, BPCL has provided brachytherapy machines
for cancer treatment at Homi Bhabha cancer hospital & Research
Centre, Muzaffarpur, Bihar and Cachar Cancer Hospital and
Research Centre, Silchar, Assam. Healthcare infrastructure
was set up through construction of hospital, setting up
surgical and burns ICUs and providing the required life-saving
medical equipment.

Community based healthcare delivery was enhanced through
Mobile Medical Units (MMUs), health camps, and technology
enabled interventions including tele-medicine platforms,
particularly in rural, tribal, aspirational districts and urban
underserved geographies. Flagship initiatives such as Lifeline
Express (Hospital on Train), Jan Arogyam Community Healthcare
Programme and First Meal Programmes continued to benefit
a large number of people across the country. Similarly, over
180 open gyms were set up in different parts of the country,
promoting community health and well-being by providing
accessible and affordable fitness infrastructure in public spaces.

BPCL's education initiatives focused on improving access to
quality education and strengthening learning infrastructure.
Support was extended towards construction and upgradation
of school buildings, smart classrooms, science laboratories,
digital learning facilities and supply of educational materials in
government and aided schools.

Towards enhancing the quality of education among tribal
students, BPCL supported the establishment of 75 Space
Labs in Eklavya Model Residential Schools (EMRS) across
18 States and 1 Union Territory. Implemented through the
Ministry of Tribal Affairs, with technical guidance from ISRO,
the project aims to promote scientific curiosity and strengthen
STEM-based learning among tribal students. The initiative is
designed to directly benefit more than 18,000 students by
providing advanced educational infrastructure and exposure to
space science and technology.

Scholarships and education support programs benefited
students from economically weaker and marginalized sections
of society, particularly in areas surrounding BPCL's operational
locations. Support to residential schools and hostels contributed
to improved Enrollment, retention and educational outcomes
among students in remote and underserved regions.

The Company continued its emphasis on skill development
and livelihood enhancement through structured vocational
training, apprenticeship engagement and women centric skilling
programs. Through ongoing investment in skill development,
BPCL remains committed to supporting employability and
contributing to the creation of a future-ready workforce for
the country

Reinforcing its focus on nurturing young talent, the company
continued its apprenticeship program during the year by
onboarding around 1,100 apprentices over and above the
mandated 2.5% of workforce, across various functions. The
initiative offers practical industry exposure and structured

on-the-job learning, helping apprentices build technical
capabilities and improve career readiness.

Skill development programs covered vocational trades,
automotive maintenance, tailoring, handicrafts, digital skills and
entrepreneurship, enabling income generation and economic
self-reliance among beneficiaries across rural and semi urban
areas. The company has launched an all-India sports scholarship
program for empowering future sports champions.

The company has always stood by advancement of inclusion and
accessibility through initiatives for persons with disabilities like
providing mobility devices, Al-based smart vision glasses, health
equipment and setting up rural centers of excellence.

Environmental stewardship remained integral to BPCL's CSR
portfolio. Initiatives undertaken during the year included
plantation drives, Miyawaki based afforestation, solar RO water
systems, water conservation measures and Mission LiFE aligned
interventions, contributing towards climate resilience and
sustainable resource management. Over 500 solar & high mast
lights were provided as an important step towards improving
public safety, enhancing energy access, and promoting
environmental sustainability.

Community development programs addressed essential
infrastructure needs including safe drinking water, sanitation
facilities, public hygiene, sports and fitness infrastructure, road
development and community assets in underserved locations.

BPCL actively participated in national cleanliness and awareness
campaigns, undertaking extensive outreach and action-oriented
activities across its locations. Swachhata Pakhwada 2025 was
observed with the participation of a whopping 7 lakh persons
from the company and its network.

Swachhata Hi Seva was celebrated by BPCL in true spirit
from September 17 to October 2, 2025 and more than 900
activities were conducted with participation by employees and
BPCL network.

Through its CSR initiatives during FY 2025-26, BPCL reaffirmed
its commitment to nation-building and inclusive growth. By
focusing on high impact interventions across health, education,
skill development, environmental sustainability and community
well being, the Company continues to create sustainable
and measurable social impact in alignment with India's
development priorities.

PROMOTION OF SPORTS

BPCL continued to strengthen its culture of sports and wellness
through a wide range of initiatives aimed at promoting employee
well-being, fitness, and engagement across the organization.
During the year, multiple sporting and wellness activities were
organized across locations, fostering teamwork, camaraderie,
and a healthy work environment. Employees enthusiastically
participated in several sporting events and engagement
programs such as Cricket tournaments, National Badminton
Championship, Online Chess Championship, Stepathon

challenges, and sports coaching activities for employees'
children, reflecting the growing spirit of fitness and active living
within the organization.

A notable initiative during the year was BPCL Fitdivaz, a dedicated
wellness platform for women employees and spouses of male
employees. The platform organized various fitness sessions,
wellness programs, games, and engagement activities aimed
at promoting healthy lifestyles, overall well-being, and greater
community bonding among participants.

Reinforcing its commitment towards sports promotion beyond
the organization, BPCL also launched a scholarship program for
100 promising sportspersons across 14 sporting disciplines
in the 13-25 years age group, supporting young athletes in
pursuing excellence at national and international levels.

BPCL also takes pride in being associated with several eminent
sportspersons, including Suryakumar Yadav, Kuldeep Yadav,
Sanju Samson, Shreyas Iyer, Shivam Dube, Saina Nehwal,
Deepika Kumari, and Atanu Das, who continued to bring laurels
to the nation and the Corporation through their outstanding
performances and achievements. To further encourage
participation in sports and fitness activities, BPCL strengthened
sports infrastructure across more than 100 locations
nationwide, including facilities for badminton, volleyball, table
tennis, and other recreational activities. The Corporation also
actively encouraged participation in marathons, walkathons,
and community fitness initiatives, reaffirming its commitment
towards building a healthier, more engaged, and wellness-
oriented workforce.

RESERVATION AND OTHER WELFARE
MEASURES FOR SCHEDULED CASTES/
SCHEDULED TRIBES/OTHER BACKWARD
CLASSES AND PERSONS WITH BENCHMARK
DISABILITIES

BPCL has been following in letter and spirit the Presidential
Directives and other guidelines issued from time to time by
the Ministry of Petroleum & Natural Gas (MoP&NG), Ministry of
Social Justice and Empowerment and the Department of Public
Enterprises relating to reservations/concessions for Scheduled
Castes (SCs), Scheduled Tribes (STs), Other Backward Classes
(OBCs) and Economically Weaker Sections (EWS). An adequate
monitoring mechanism has been put in place for sustained
and effective compliance uniformly across the Company.
Rosters are maintained as per the directives and are regularly
inspected by the Liaison Officer of the Company as well as
the Liaison Officer of MoP&NG to ensure proper compliance
of the directives. SC/ST and economically backward students
are encouraged by awarding scholarships to those pursuing
education in the secondary school and up to graduation level.
BPCL zestfully amalgamates persons with special abilities in its
workforce. The Company complies with provisions under 'The
Rights of Persons with Disabilities (RPWD) Act, 2016' relating
to providing equal employment opportunities for Persons with

Benchmark Disabilities (PWBDs). BPCL has also formulated an
'Equal Opportunity Policy' and complies with the same.

Details relating to representation of SC/ST/OBC/EWS
candidates and PWBDs are appended as Annexure C.

MATERNITY BENEFITS

In accordance with the Maternity Benefit Act, 1961, the
Company provides statutory maternity benefits, including
paid leave, medical benefits, and related facilities for its female
employees, and affirms complete compliance with the provisions
of the Maternity Benefit Act, 1961.

IMPLEMENTATION OF OFFICIAL LANGUAGE
POLICY

In line with the Official Language Policy of the Government
of India, business requirements, and customer needs, BPCL
continued to promote the extensive use of Hindi and other Indian
languages across the organization. The Corporation diligently
implemented the Annual Program in FY 2025-26 issued by the
Department of Official Language under the Ministry of Home
Affairs for the effective and progressive usage of the official
language throughout the Corporation.

The progressive use of Hindi was regularly reviewed and
evaluated on a quarterly, half-yearly, and annual basis
through key committees such as the Official Language
Implementation Committee (OLIC) and the Town Official
Language Implementation Committee (TOLIC) at various levels,
including regions, offices, locations, and refineries. In addition,
the Parliamentary Committee on Official Language, MoPNG,
Ministry of Home Affairs conducted inspections at several
BPCL offices and locations and appreciated the Corporation's
sustained efforts toward effective implementation of the official
language policy.

To strengthen compliance with the Official Language Policy,
BPCL organized Hindi training programs and workshops on
Indic bilingual software, voice typing, and machine translation.
The Corporation also undertook several initiatives to promote
Hindi, including the observance of Hindi Fortnight/Week,
publication of the in-house Hindi magazines - Rajbhasha
Gunjan, Pashchim Varta, Rajbhasha Sangrah, Garvi Gujarat,
Srijan and the quarterly e-magazine Dharohar, celebration of
important national days and project milestones, administration
of pledges of national importance, observance of World Hindi
Day. Various competitions, programs, and cultural activities
were also conducted, witnessing enthusiastic participation from
employees across the organization.

Since 2023, BPCL has been conferred with the prestigious
'Rajbhasha Kirti Award' for three consecutive years under various
categories for its exemplary implementation of the Official
Language Policy. In 2023, BPCL received the 2^nd prize for our
in-house Hindi magazine Gunjan under Best in-house Magazine
Category; in 2024, 2^nd prize for outstanding implementation
of the Official Language Policy in office operations under PSU

Category; and again, 2^nd prize for Gunjan magazine under
Best in-house Magazine Category in 2025. The awards were
conferred by the Ministry of Home Affairs during the All-India
Official Language Conference and Award Distribution Ceremony
organized on the occasion of Hindi Day.

BPCL was also conferred the "Outstanding Public Undertaking"
award by Aashirwad Literary-Socio Cultural Organization on
33^rd Official Language Award Distribution Ceremony held on
24.02.2026, in recognition of its effective implementation
of the Official Language policy. At the all-India level, BPCL
received several accolades from the Town Official Language
Implementation Committee (TOLIC) at various locations,
including the Chairman's Office, Roorkee LPG Plant, Western
Regional Office - Kharghar, Koyali Installation, State Office -
Ahmedabad, Gaigaon Depot, Mumbai Refinery, Kochi Refinery,
Southern Regional Office - Chennai, and Eastern Regional Office
- Kolkata, for excellence in Hindi implementation during the year.

In addition, Peethampur LPG Plant was awarded the Regional
Rajbhasha Puraskar (2^nd Prize) under the PSU Category in
recognition of its exemplary implementation of the Official
Language Policy. Further, Goa Territory Office (Goa TOLIC) was
honored with the Regional Rajbhasha Puraskar (3^rd Prize) under
the TOLIC Category for its outstanding contribution towards
the promotion and effective implementation of the Official
Language. These accolades were conferred during the Regional
Rajbhasha Sammelan held at Indore on January, 2026.

CITIZEN'S CHARTER, PUBLIC GRIEVANCE
REDRESSAL (PG) & CUSTOMER CARE SYSTEM
(CCS) AND RIGHT TO INFORMATION (RTI)

At BPCL, customers remain at the heart of our business
philosophy and operations, reflecting a deeply embedded
culture of service excellence. In an increasingly competitive
and dynamic marketplace, superior customer service continues
to be a key driver of sustainable growth, brand strength and
enduring stakeholder relationships. Guided by this philosophy,
Marketing Corporate remains steadfast in its commitment to
delivering responsive, reliable and customer-centric service
across touchpoints.

BPCL continues to set benchmarks in customer service by
consistently enhancing convenience, strengthening service
delivery and ensuring timely grievance redressal through
robust and well-defined mechanisms that align with evolving
customer expectations.

Citizen's Charter:

BPCL's internal processes are closely aligned with the high
standards of service it seeks to provide to every customer.
The Citizens' Charter reflects the Corporation's commitment
to transparency, accountability and responsiveness,
thereby reinforcing trust between the service provider and
its stakeholders.

Published on the corporate website, the Citizens' Charter
outlines the range of services offered to customers and
provides an overview of the Corporation's marketing activities,
policy guidelines and processes for the marketing of petroleum
products. It also sets out the Corporation's mandate, customer
rights, service standards, timelines for delivery and the
grievance redressal framework. These service standards
are reviewed periodically and updated in line with changing
business requirements.

Public Grievance Redressal (PG)

Public grievances in BPCL are monitored through the Centralized
Public Grievance Redress and Monitoring System (CPGRAMS),
an online portal developed by the National Informatics Centre
(NIC) under the Department of Administrative Reforms and
Public Grievances (DARPG).

Grievances received through CPGRAMS are centrally reviewed
at the Corporate level and routed through a robust online
network to the relevant Business Units and entities for resolution.
An established escalation matrix supports timely closure and
helps maintain the quality of redressal.

In FY 2025-26, BPCL redressed and closed 6,826 grievances
out of 8,764 received, with an average disposal time of 12 days.

The Company also closed 572 appeals out of 589 received
through the CPGRAMS portal during FY 2025-26.

Customer Care System (CCS)

'SmartLine', BPCL's centralized Customer Care System (CCS),
is a pioneering initiative in India's oil and gas industry. It serves
as a single-window interface for customers across digital and
non-digital platforms. Enabled by advanced CRM technology,
SmartLine strengthens customer engagement, creates deeper
customer insights and presents a unified face of BPCL across
its businesses.

Since its launch in 2013, SmartLine has recorded 1,61,12,999
customer interactions. It continues to serve as the first point
of contact for BPCL's growing customer base for queries
and grievance redressal, supported by a dedicated team of
111 executives and a robust digital CRM backbone.

As BPCL accelerates its digital journey, CCS continues to support
customers across businesses and geographies in navigating
this transformation. The increasing use of technology and AI is
helping enhance service responsiveness, strengthen customer
support and improve safety. Beyond grievance resolution,
insights generated through the system are leveraged to drive
continuous improvements in service delivery at the grassroots
level. Customer delight remains central to all our endeavors.

'Ek Call... Sab Solve' continues to guide SmartLine's service
philosophy, even after 13 years of successful operations.

Right to Information (RTI)

BPCL has been implementing the Right to Information Act, 2005
since its inception and remains fully committed to the norms
prescribed under the Act. In line with statutory requirements,
relevant information, including suo motu disclosures
under Section 4(1)(b), has been hosted on the Company's
corporate website to facilitate greater public understanding
and transparency.

In addition to physical applications, the Company also receives
online RTI requests and processes them through the Government
of India's unified RTI online portal.

RTI queries received through the portal were addressed
within the stipulated 30-day time limit, thereby ensuring full
compliance and avoiding any penalty on account of delay. The
Company's network of 54 Central Public Information Officers
(CPIOs) and 18 First Appellate Authorities (FAAs), spread across
the country, supports efficient handling of RTI matters across
major SBUs and entities, including Retail, LPG, Aviation, Lubes,
Industrial and Commercial, Mumbai Refinery, Kochi Refinery,
Bina Refinery, Gas, HR, International Trade, Vigilance, Biofuels,
CPO and Pipeline.

From 2005 to March 31, 2026, the Company has successfully
handled 60,292 RTI applications, 8,617 first appeals and
1,628 second appeals before the Central Information
Commission (CIC), reaffirming its commitment to transparency
and accountability in business operations.

In FY 2025-26, BPCL received 3,545 RTI queries, 547 first
appeals and 107 second appeals (CIC hearings), all of which
were duly processed.

PUBLIC PROCUREMENT: MICRO AND SMALL
ENTERPRISES

The Company continues to adhere to the Public Procurement
Policy for Micro and Small Enterprises (MSEs) Order, 2012,
and its subsequent amendments. In FY 2025-26, the total
procurement value of goods and services in categories where
MSEs were eligible to participate stood at I 11,874 crore. Against
this, procurement from MSEs amounted to I 3,822 crore,
representing 32.19% of eligible procurement and surpassing
the prescribed target of 25%. The Company also achieved the
stipulated targets for procurement from MSE SC/ST and MSE
Women enterprises, with procurement levels reaching 4.22%
and 4.70%, respectively.

Out of the Company's total procurement value of Goods and
Services in FY 2025-26 of I 11,874 crore, I 6,980 crore was
procured through GeM

The Company also extends the benefits of the Trade Receivables
Discounting System (TReDS) to its Micro, Small and Medium
Enterprises (MSME) vendors. As part of its ongoing efforts
to strengthen engagement with MSEs and enhance inclusive
procurement, the Company participated in various Vendor
Development Programs organized by MSME Development

and Facilitation Offices (DFOs), which saw participation from
over 2,200 vendors. In addition, the Company conducted two
online Special Vendor Development Programs for BPCL vendors
belonging to MSE SC/ST and MSE Women categories. These
programs featured detailed presentations by officials from
MSME and the National SC/ST Hub Office (NSSHO). Across
these initiatives, vendors were apprised of the Company's
current and future business requirements, as well as emerging
trends and technologies.

Vigilance

The Vigilance function in the Company plays a pivotal role in
promoting high standards of probity, integrity and transparency,
thereby strengthening the overall framework of corporate
governance. Vigilance activities are pursued through an
integrated approach encompassing Punitive Vigilance,
Preventive Vigilance, and Participative Vigilance, aimed at not
only addressing instances of misconduct but also preventing
their occurrence and fostering ethical awareness across
the organization.

The Company has established an effective Vigilance Mechanism
to enable reporting of genuine concerns and to safeguard the
interests of employees and other stakeholders. The Vigilance
function is headed by the Chief Vigilance Officer (CVO), who is
supported by a dedicated team at the Headquarters in Mumbai,
along with four regional vigilance offices and vigilance units at
three refineries.

The CVO advises the Management on vigilance-related
matters and serves as the primary interface between the
Company and statutory and investigative agencies such as the
Central Vigilance Commission (CVC) and the Central Bureau
of Investigation (CBI). The Vigilance Mechanism operates in
accordance with the Vigilance Manual, guidelines and circulars
issued by the CVC, directives of the Department of Personnel
& Training (DoPT), and instructions received from the Ministry
of Petroleum & Natural Gas (MoP&NG). Periodic reports on
vigilance activities and initiatives are submitted to the CVC and
MoP&NG to ensure transparency and accountability.

Emphasis was placed on Preventive Vigilance in FY 2025-26
through awareness generation, system improvements and
enhanced procedural compliance.

In FY 2025-26, a total of 130 training sessions were conducted,
benefiting 3,792 participants across various locations. To assess
compliance with established procedures, surprise inspections
were carried out at 46 locations, 22 retail outlets, and 14 LPG
distributorships. Preventive checks were also extended to
major projects, works and procurement activities with the
objective of identifying systemic weaknesses and suggesting
remedial measures.

Other preventive initiatives undertaken during the year
included system studies, CTE-type inspections, scrutiny
of tender documents, and examination of annual property

returns. These measures were aimed at fostering transparency,
efficiency, objectivity and accountability in administrative and
operational processes.

Participative Vigilance was strengthened through widespread
stakeholder engagement. Vigilance Awareness Week (VAW)
was observed from October 27 to November 2, 2025, on
the theme 'Vigilance: Our Shared Responsibility'. A range of
activities such as walkathons, seminars and webinars, school
outreach programmes, Nukkad Nataks, vendor/transporter/
customer meets, Gram Panchayat events, and Integrity Jingles
at retail outlets were organized across the country to reinforce
ethical values and collective responsibility.

Further, Integrity Clubs were established in seven schools
to inculcate the values of honesty and integrity among
students at an early age. The quarterly newsletter 'Vigilance
Plus' was published during the year to enhance awareness
and dissemination of vigilance-related information and best
practices across the organization.

While Preventive and Participative Vigilance form the foundation
of vigilance efforts, Punitive Vigilance remains critical for
addressing instances of misconduct and ensuring deterrence.
Complaints and cases were examined and investigated in a
timely manner in accordance with CVC guidelines, with due
regard to principles of fairness and natural justice.

The position of vigilance investigations during FY 2025-26 is
summarized below:

The pending cases primarily relate to vigilance investigations
and disciplinary proceedings at various stages of inquiry.
Continuous efforts are being made to ensure their expeditious
disposal. Timely conclusion of cases serves the interests of both
the organization and the concerned employees by enabling
appropriate action, reinforcing accountability, and acting as a
deterrent against future misconduct.

SUBSIDIARIES, JOINT VENTURES AND
ASSOCIATE COMPANIES

BPCL has three subsidiaries and 25 Joint Venture Companies
and Associate Companies as on March 31, 2026.

A separate statement containing the salient features of the
financial statements of Subsidiaries/ Associates/Joint Venture
Companies in Form AOC-1 pursuant to provisions of Section
129 (3) of the Act, is attached along with the financial statement.

The Company has placed its financial statements including
the Consolidated Financial Statements and all other
documents required to be attached thereto, on its website
www.bharatpetroleum.inas per Section 136(1) of the Act.
Further, the Company has also placed separate Annual Reports/
audited accounts of its Subsidiaries on its above website.
A copy of the said documents is available for inspection and will
be provided to any shareholder of the Company who asks for it.

The policy for determining material Subsidiaries is posted on the
Company's website at the link:https://www.bharatpetroleum.in/
images/files/policy-for-material-subsidiaries.pdf

BPCL SUBSIDIARY COMPANIES
BHARAT PETRORESOURCES LIMITED (BPRL)

BPRL, established in October 2006 as a wholly owned subsidiary
of BPCL, was tasked with spearheading upstream Oil & Gas
investments. Its portfolio comprises of blocks in different phases
of exploration, appraisal, development, and production.

BPRL holds Participating Interest (PI) in 15 blocks, with 8 blocks
located in India and 7 blocks in overseas. Additionally, BPRL
has equity stakes in two Russian entities, which hold licenses
for four producing blocks in Russia. While BPRL directly holds
PI in domestic blocks, its stakes with respect to blocks in Brazil,
Mozambique, Indonesia, UAE and equity stakes in Russian
entities are held through step-down wholly owned subsidiaries
or joint ventures (JVs) of the wholly owned subsidiaries located
in the Netherlands and Singapore.

As on March 31, 2026, BPCL's investment is I 15,300 crore in
the equity capital of BPRL (apart from equity component of
I 126.37 crore recognized on fair valuation of concessional rate
loan given to BPRL). There is no loan outstanding from BPCL to
BPRL as on March 31, 2026. BPRL has recorded a consolidated
total income of I 405.57 crore and a consolidated loss of
I 1,423.27 crore for the financial year ending March 31, 2026.

In FY 2025-26, BPRL Group's share of Oil & Gas production was
2.64 MMTOE.

A detailed discussion on the blocks is given in the Management
Discussion & Analysis Report (MDA).

BPCL-KIAL FUEL FARM PRIVATE LIMITED (BKFFPL)

BKFFPL was incorporated in May 2015 with an equity
participation of 74% by BPCL and 26% by Kannur International
Airport Limited. The company was formed to design, construct,
commission and operate the Fuel Farm at Kannur International
Airport for the supply of ATF on an exclusive basis. The Fuel
Farm started operating from December 2018, along with the
commissioning of Kannur International Airport. As on March 31,

2026, the authorized share capital of the company is I 50 crore
and paid-up share capital is I 9 crore. In FY 2025-26, the fuel
throughput was 46,861 KL. The company earned revenue from
operations of I 12.28 crore in FY 2025-26 and the profit during
the period was I 1.38 crore.

BKFFPL is being managed under a joint control mechanism.
Hence, in the consolidated financial statements of the group
for the period ending March 31, 2026, the financials have been
consolidated as a Joint Venture as per the principles of Indian
Accounting Standards.

BHARAT PETROLEUM GLOBAL ENERGY
SERVICES (SINGAPORE) PTE LIMITED (BPGES)

Bharat Petroleum Global Energy Services (Singapore) Pte Ltd.
(BPGES), a 100% Subsidiary of BPCL, was incorporated in
Singapore on 26^th February 2026 as a trading arm of BPCL with
an initial capital of $ 2 Million. The new entity marks an important
step in strengthening BPCL's global footprint and elevating
its international trading and sourcing capabilities. Apart from
leading the crude oil procurement BPGES would explore
trading opportunities both in terms of Crude oil and petroleum
products such as LPG, Naphtha, Fuel Oil, and LNG. The Company
is currently in its pre-operational phase and yet to commence
business activities.

BPCL JOINT VENTURE COMPANIES AND
ASSOCIATESPETRONET LNG LIMITED (PLL)

PLL was formed in April 1998 for importing Liquefied Natural
Gas (LNG) and setting up a LNG terminal with facilities like jetty,
storage, regasification, etc. to supply natural gas to various
industries in the country. The Company has an authorized share
capital of I 3,000 crore and paid-up share capital of I 1,500 crore.
PLL was promoted by four public sector companies, viz. BPCL,
Indian Oil Corporation Limited (IOCL), Oil and Natural Gas
Corporation Limited (ONGC) and GAIL (India) Limited (GAIL).
Each of the promoters holds 12.5% of the equity capital of PLL.
BPCL's equity investment in PLL currently stands at I 98.75 crore.

PLL recorded consolidated revenue from operations of
I 43,494.91 crore in FY 2025-26, as against I 50,982.03 crore
recorded in FY 2024-25. The consolidated profit for the year
stood at I 3,912.53 crore, as compared to I 3,972.68 crore in
FY 2024-25. The consolidated EPS for FY 2025-26 is I 26.08,
as compared to I 26.48 in FY 2024-25. In FY 2025-26, PLL has
recommended a final dividend of I 3 per share, in addition to an
interim dividend of I 7 per share during the year. In the previous
year, PLL had declared a special interim dividend of I 7 per share
and a final dividend of I 3 per share.

INDRAPRASTHA GAS LIMITED (IGL)

IGL is a joint venture company promoted by BPCL and GAIL
and set up in December 1998. IGL is a City Gas Distribution

(CGD) company supplying natural gas to transport, domestic,
commercial and industrial consumers. The operations of IGL are
spread over NCT of Delhi, Noida and Greater Noida, Ghaziabad
and Hapur, Gurugram, Meerut (except areas already authorized),
Shamli, Muzaffarnagar, Karnal, Rewari, Kanpur (except areas
already authorized), Hamirpur-Fatehpur districts, Kaithal, Ajmer,
Pali, Rajsamand, Banda, Chitrakoot and Mahoba districts. IGL
also holds 50% of equity in M/s. Central UP Gas Limited, Kanpur
and M/s. Maharashtra Natural Gas Limited, Pune, which are the
joint venture companies promoted by BPCL and GAIL.

The company has an authorized share capital of I 1,000 crore
and paid-up share capital of I 280 crore. BPCL had invested
I 31.50 crore for 22.5% stake in its equity. The company added
102 new Compressed Natural Gas (CNG) stations and 3.7 lakh
new Piped Natural Gas (PNG) domestic connections during the
year. As on March 31, 2026, IGL has 1,024 CNG stations and
34.40 lakh PNG domestic connections.

IGL has registered consolidated revenue from operations of
I 17,846.31 crore and consolidated profit of I 1,543.51 crore for
the year ending March 31, 2026, as compared to consolidated
revenue from operations of I 16,451.55 crore and consolidated
profit of I 1,713.01 crore in the previous year. The EPS for the
year stood at I 11.07, as against I 12.27 in FY 2024-25. The IGL
Board has recommended a final dividend of I 1.50 per share
(face value of I 2 each), in addition to an interim dividend of
I 3.25 per share during the year. In the previous year, IGL had
declared an interim dividend of I 5.50 per share (face value of
I 2 each) and final dividend of I 1.50 per share.

SABARMATI GAS LIMITED (SGL)

SGL, a joint venture company promoted by BPCL and Gujarat
State Petroleum Corporation (GSPC), was incorporated in
June 2006 with an authorized share capital of I 100 crore for
implementing City Gas Distribution projects for supply of CNG
to the household, automobile, industrial and commercial sectors
in Gandhinagar, Mehsana, Aravali, Sabarkantha and Patan
districts of Gujarat. The paid-up share capital of the company
is I 20 crore. As on March 31, 2026, BPCL has a stake of 49.94%
in the equity capital of SGL. SGL has set up 161 CNG stations
and is supplying PNG (Domestic) to 3.60 lakh customers. SGL
has achieved a turnover of I 2,728.01 crore and a profit of
I 282.87 crore for the year ending March 31, 2026, as against
I 2,583.30 crore and I 280.52 crore respectively for the previous
year. The EPS for the year stood at I 141.44 as against I 140.26
in FY 2024-25. The Company has recommended a final dividend
of I 80 per share for FY 2025-26. In the previous year, SGL had
declared final dividend of I 80 per share.

CENTRAL UP GAS LIMITED (CUGL)

CUGL is a joint venture company set up in February 2005 with
GAIL as the other partner for implementing projects for supply
of CNG to the automobile sector and PNG to the household,

industrial and commercial sectors in Kanpur (including
parts of Unnao district), Bareilly and Jhansi in Uttar Pradesh.
The Company has an authorized share capital of I 60 crore as
on March 31, 2026. The joint venture partners have each invested
I 15 crore for an equity stake of 25% each in the Company, while
the balance 50% is held by IGL. As on March 31, 2026, CUGL has
95 CNG stations. CUGL has achieved revenue from operations
of I 731.05 crore and profit of I 63.19 crore for the year ending
March 31, 2026, as against I 694.00 crore and I 70.03 crore
respectively, for the previous year. The EPS for the year stood
at I 10.53, as against I 11.67 in FY 2024-25. The Company
has recommended a final dividend of I 2.50 per share for
FY 2025-26. In the previous year, CUGL had declared a final
dividend of I 3 per share.

MAHARASHTRA NATURAL GAS LIMITED (MNGL)

MNGL was set up in January 2006 as a joint venture company
with GAIL for implementing the project for supply of natural gas
to the household, industrial, commercial and automobile sectors
in Pune and its nearby areas. The Company was incorporated
with an authorized share capital of I 100 crore. The paid-up
share capital of the company is I 100 crore. BPCL and GAIL
have invested I 22.50 crore each in MNGL's equity capital.
Maharashtra Industrial Development Corporation (MIDC), as a
nominee of the Maharashtra Government, holds 5% equity and
the balance 50% is held by IGL.

MNGL, while strengthening its roots in the existing authorized
GA covering Pune and adjoining areas, is also making significant
strides in expanding its footprint across new territories. Notably,
MNGL has achieved considerable progress in the Nasik GA and
Sindhudurg GA in Maharashtra, as well as the Ramanagara GA
in Karnataka—areas awarded by the Petroleum and Natural Gas
Regulatory Board (PNGRB) under the 9^th City Gas Distribution
(CGD) Bidding Round. MNGL has achieved an average sale of
1.97 million Metric Standard Cubic Meters per Day (MMSCMD)
in FY 2025-26, marking a robust year-on-year volume growth of
over 17%. In line with its aggressive expansion strategy, MNGL
successfully commenced commercial operations in multiple new
GAs secured under the 11^th CGD Bidding Round. These include
the districts of Buldhana, Nanded, and Parbhani in Maharashtra,
as well as Nizamabad, Adilabad, Nirmal, Mancherial, Kumuram
Bheem Asifabad, and Kamareddy in the state of Telangana.

MNGL has set up 373 CNG stations and is supplying PNG
(Domestic) to 11.63 lakh (5^th Largest in India) customers. MNGL
has achieved revenue from operations of I 4,308.93 crore and
profit of I 538.90 crore for the year ending March 31, 2026
as against Revenue of I 3,591.82 crore and profit of I 652.53
crore respectively, in the previous year. The EPS for FY 2025-26
stood at I 53.89, as against I 65.25 in FY 2024-25. The MNGL
Board has recommended a final dividend of I 8.20 per share, in
addition to interim dividend of I 8 per share during the year. In
the previous year, MNGL had declared a final dividend of I 11.60

per share, in addition to interim dividend of I 8 per share during
the year.

HARIDWAR NATURAL GAS PRIVATE LIMITED
(HNGPL)

HNGPL was incorporated in April 2016 as a joint venture company
with Gail Gas Limited on a 50:50 basis for implementation of a
CGD network in the GA of Haridwar District of Uttarakhand. As
on March 31, 2026, the authorized share capital of the company
is I 90 crore and paid-up share capital is I 87.16 crore. The
five-year Minimum Work Program (MWP) target as per PNGRB
authorization of 16,905 domestic PNG connections and 830
inch-km pipeline was achieved by the company in FY 2020-21.
As on March 31, 2026 the Company provided 27,127 domestic
connections and laid around 1,530.29 inch-km pipeline. Further,
the Company has set up 11 CNG stations. HNGPL achieved a
revenue from operations of I 127.41 crore and a profit of I 9.03 crore
for the year ending March 31, 2026, as against a revenue of
I 115.93 crore and profit of I 7.93 crore in the previous year.

GOA NATURAL GAS PRIVATE LIMITED
(GNGPL)

GNGPL was incorporated in January 2017 as a joint venture
company with GAIL Gas Limited on a 50:50 basis for
implementation of a City Gas Distribution Project in the GA
of North Goa. The authorized share capital of the company is
I 90.40 crore as on March 31, 2026 and the promoters have
infused I 40 crore each towards equity as on March 31, 2026.
The Company has already achieved its five-year MWP target of
providing 9,588 domestic connections and laying 650 inch-km
pipeline. As on March 31, 2026, the Company provided gas to
12,257 domestic connections and laid around 842.23 inch-km
pipeline in the North Goa GA. Further, the Company has 7 CNG
Stations operational in North Goa & Ponda and is supplying gas
to 57 Commercial and 37 Industrial PNG Customers. GNGPL
achieved revenue from operations of I 179.59 crore and a profit
of I 4.64 crore for the year ending March 31, 2026, as against
revenue of I 155.33 crore and a profit of I 4.05 crore in the
previous year.

BHARAT STARS SERVICES PRIVATE LIMITED
(BSSPL)

BSSPL, a joint venture company promoted by BPCL and ST
Airport Services Pte Ltd., Singapore was incorporated in
September 2007. BSSPL aims to provide world class Into Plane
services (ITP), Fuel farm management services and Aviation
solutions to customers. The authorized and paid-up share capital
of BSSPL is I 20 crore. The two promoters have each subscribed
to 50% of the equity share capital of BSSPL and BPCL's present
investment stands at I 10 crore. BSSPL also has a wholly-owned
subsidiary named Bharat Stars Services (Delhi) Private Limited,
which is providing Into-Plane (ITP) services at Delhi Airport.

The company commenced its ITP operations in Bengaluru
in 2008. BSSPL has now increased its footprint at different
airports across India, which includes major airports like Delhi,
Mumbai, Bengaluru and Chennai. BSSPL also provides Business
Support Services (manpower services for fueling operations)
in the petroleum sector. Presently, the company operates at
88 locations in India. BSSPL achieved consolidated revenue
from operations of I 106.56 crore and a consolidated profit of
I 12.64 crore for the financial year ending March 31, 2026,
compared to a consolidated revenue from operations of
I 94.52 crore and a consolidated profit of I 13.71 crore for the
previous year. The company has recommended a final dividend
of I 0.60 per share for FY 2025-26. In the previous year, BSSPL
had declared a final dividend of I 0.60 per share.

DELHI AVIATION FUEL FACILITY PRIVATE
LIMITED (DAFFPL)

A joint venture company, DAFFPL has been promoted by
BPCL, IOCL and Delhi International Airport Limited (DIAL) for
implementing open-access Aviation Fuel facility for T1, T2,
T3 and Cargo terminals at Indira Gandhi International Airport.
The authorized and paid-up share capital of the Company is
I 170 crore and I 164 crore respectively. BPCL and IOCL each
have subscribed to 37% of the share capital of the joint venture,
while the balance 26% is held by DIAL. DAFFPL has achieved
revenue from operations of I 59.22 crore and net loss of
I 20.87 crore for the year ending March 31, 2026, as against
revenue of I 74.67 crore and loss of I 19.60 crore respectively
during the previous year. The EPS for the year stood at I (1.27),
as against I (1.19) in FY 2024-25.

MUMBAI AVIATION FUEL FARM FACILITY
PRIVATE LIMITED (MAFFFL)

MAFFFL was incorporated in February 2010 by Mumbai
International Airport Limited (MIAL). BPCL, IOCL and HPCL
became joint venture partners with MIAL in October 2014
with each having an equity holding of 25%. Presently, BPCL has
invested an amount of I 52.92 crore towards equity. MAFFFL
started its operations from February 2015. The business of the
Company is to own, operate and maintain aviation fuel farm
facilities and to provide into-plane services at Chhatrapati Shivaji
Maharaj International Airport (CSMIA), Mumbai. The facility is
being operated on an open-access basis. The revenue to MAFFFL
is by way of Fuel Infrastructure Charges, payable by the suppliers
for utilizing the facility.

MAFFFL achieved a throughput of 17.93 Lakh KL during FY 2025-26,
which is an increase of 2.81% from 17.44 Lakh KL during the
previous year. The sales volume of 17.93 Lakh KL during the
year is the best performance of the Company post COVID-19.
MAFFFL has achieved revenue from operations of I 167.58 crore
and profit of I 79.90 crore for the year ending March 31, 2026 as
against revenue from operations of I 162.97 crore and profit of
I 75.96 crore respectively, during the previous year. EPS for

FY 2025-26 stood at I 3.77, as against I 3.59 in FY 2024-25.
The company has declared interim dividend twice during the
year, totalling to I 7.30 per share during the year.

KANNUR INTERNATIONAL AIRPORT LIMITED
(KIAL)

KIAL is an unlisted Public Company promoted by the Government
of Kerala, to build and operate the airport at Kannur, at
international standards, primarily to cater to the travelling needs
of the large NRI population in the region, which travels frequently
to various international destinations, and the flourishing
business community and tourists. The authorized share capital
of the company is I 3,500 crore and the paid-up share capital
of the company as on March 31, 2026 is I 1,338.39 crore,
out of which BPCL has contributed I 216.80 crore. Kannur
Airport was commissioned in December 2018 and it is one
of the four international airports in Kerala. During FY 2025-26,
total aircraft movements were 11,735 and passenger traffic
was approximately 14.34 lakh, as against 11,572 aircraft
movements and approximate passenger traffic of 13.40 lakh in
the previous year.

MATRIX BHARAT PTE LIMITED (MXB)

MXB is a joint venture company incorporated in Singapore in
May 2008 for carrying out bunkering business and supply of
marine lubricants in the Singapore market as well as international
bunkering, including expanding into Asian and Middle East
markets. The Company has been promoted by BPCL and Matrix
Marine Fuels L.P. USA, an affiliate of the Mabanaft group of
companies, Hamburg, Germany, contributing equally to the
share capital of $ 4 million. Matrix Marine Fuels L.P. USA has
subsequently transferred their share and interest in the joint
venture in favour of Matrix Marine Fuels Pte Limited, Singapore,
another affiliate of the Mabanaft group, which has been further
transferred in favour of Bomin International Holding GmbH,
Germany, yet another affiliate of the Mabanaft group. In March
2021, MXB carried out capital reduction and the revised share
capital of MXB stands at $ 0.50 million, with BPCL's share being
$ 0.25 million. The Company has ceased its operations since
July 2020 and is in process of winding up. MXB reported a loss of
$ 5 thousand for the year ending December 31, 2025, as against
a loss of $ 4 thousand for the year ending December 31, 2024.

KOCHI SALEM PIPELINE PRIVATE LIMITED
(KSPPL)

BPCL signed a Joint Venture agreement with IOCL for
implementation of the Kochi-Coimbatore-Salem LPG Pipeline
Project and formed a Joint Venture company, KSPPL in
January 2015, on a 50:50 basis. As on March 31, 2026, BPCL
has paid an amount of I 750.12 crore towards equity in the
Company. The project is being executed in four phases. The
Kerala portion of the pipeline has been commissioned in two
phases and is operational, with first phase comprising the 12 km

pipeline from Kochi Refinery (KR) to IOCL Udayamperoor Bottling
Plant (commissioned on August 20, 2017) and the 153 km
pipeline from Kochi Refinery to Palakkad Receipt Terminal
(RT) (commissioned on August 26, 2023), and second phase
comprising the 38.6 km pipeline from Puthuvypeen IOCL Import
Terminal to KR (commissioned on October 17, 2023). During the
FY 2025-26, 786.12 TMT of LPG was transported through the
Kerala section of the pipeline as against a quantity of 743.10 TMT
in the FY 2024-25. The project works on the Tamil Nadu section
of the pipeline is being executed from Palakkad to Salem, which
consists of third phase 58 km 12" inch pipeline from Palakkad RT
to Coimbatore RT and the fourth phase 194 km 8" inch pipeline
from Coimbatore RT to Salem RT. ROU permission for laying
the pipeline has been obtained for 94.75% of the Tamil Nadu
section. Critical permissions like NOC from Forest department
and Consent to Establish have been obtained. The Mainline
Laying activities are in full swing and as on March 31, 2026, and
approximately 70 km of pipeline has been lowered in the Tamil
Nadu section.

GSPL INDIA TRANSCO LIMITED (GITL)

GITL is a joint venture of Gujarat State Petronet Ltd. (GSPL),
IOCL, BPCL and HPCL. GSPL has 52% equity participation in
the company and the balance equity is held by IOCL (26%),
HPCL (11%) and BPCL (11%). GITL has been authorized to lay a
1,881 km long pipeline from Mallavaram to Bhilwara. The initial
section of 365 Kms pipeline and associated facilities of Project
from Pipeline Infrastructure Limited's (erstwhile Reliance)
interconnection point at Kunchanapalli (Dist. West Godawari-AP)
to Ramagundam Fertilizers & Chemicals Limited's Plant at
Ramagundam (Telangana) is in operations since FY 2019-20.
In FY 2025-26, the company transported approximately 544
MMSCM of gas, as against 755 MMSCM in the previous year.
GITL has reported revenue from operations of I 106.58 crore
and a loss of I 8.57 crore for the year ending March 31, 2026 as
against revenue from operations of I 110.98 crore and loss of
I 7.93 crore in the previous year.

GSPL INDIA GASNET LIMITED (GIGL)

GIGL is a joint venture of Gujarat State Petronet Ltd. (GSPL),
IOCL, BPCL and HPCL. GSPL has 52% equity participation in the
company and the balance equity is held by IOCL (26%), HPCL
(11%) and BPCL (11%).

GIGL is tasked with the development of critical cross-country
gas pipelines. The Company has been authorized to lay the
Mehsana-Bathinda Pipeline (MBPL) and the Bathinda-Gurdaspur
Pipeline (BGPL), the latter being the revised scope for the
Bathinda-Jammu-Srinagar pipeline as approved by the PNGRB.

Significant progress has been made on the projects, with
1,387 km of pipeline commissioned out of a total of 1,445 km
constructed. During the fiscal year, GIGL successfully completed
the HPCL Rajasthan Refinery Ltd. (HRRL) pipeline connectivity
project and is advancing work on the Guru Gobind Singh

Refinery (GGSR) and National Fertilizers Limited (NFL) spur
lines in Bathinda. In FY 2025-26, the Company has transported
about 1,750.79 MMSCM gas, as against 1,343.87 MMSCM in the
previous year. GIGL has reported revenue from operations, of
I 315.03 crore and a loss of I 212.44 crore for the year
ending March 31, 2026 as against revenue from operations of
I 239.67 crore and a loss of I 265.32 crore in the previous year.

FINO PAYTECH LIMITED (FINO)

BPCL acquired shares in FINO in the year 2016-17. As on
March 31, 2026, BPCL has made an investment of I 260.17 crore
and holds 21.10% on a fully diluted basis. FINO Payments Bank
(FPB) is the main operational subsidiary of the company. FPB
is a listed company, wherein FINO holds a 75% share.

PETRONET INDIA LIMITED (PIL)

PIL was formed in the year 1997 as a financial holding company
to give impetus to the development of a pipeline network
throughout the country. The Company carried out business
through Special Purpose Vehicles (SPVs) and Joint Venture
Companies. In the new Pipelines policy, oil companies were
allowed to establish their own pipeline network. PIL obtained
appropriate approvals and proceeded to liquidate its investments
in joint ventures and subsidiaries. PIL's equity has been purchased
by the respective promoter companies, viz., the Petronet CCK
Limited stake has been taken over by BPCL, the Petronet MHB
Limited stake has been taken over by HPCL and ONGC and the
Petronet VK Limited stake has been taken over by IOCL and
Reliance Industries Limited (RIL). PIL filed an application before
NCLT and the paid-up share capital was reduced from I 100 crore
to I 1 crore and I 99 crore was returned to its promoters. BPCL
has 16% equity participation in the company, with current
investment of I 0.16 crore. In FY 2018-19, shareholders of
the Company had approved voluntary winding up of PIL and
appointed an Official Liquidator (OL) for the same. Liquidation
of the company is under process.

PETRONET CI LIMITED (PCIL)

PCIL was set up in the year 2000 for laying a pipeline for
evacuation of petroleum products from refineries at Jamnagar/
Koyali to feed consumption zones in central India. BPCL has an
equity participation of 11% in this JV. Promoter companies have
decided to exit from PCIL and provision for full diminution in the
value of investment has been done in the accounts of BPCL. The
company is under liquidation.

BHARAT RENEWABLE ENERGY LIMITED (BREL)

BREL was incorporated in June 2008 for undertaking the
production, procurement, cultivation and plantation of
horticulture crops such as Karanj, Jathropha and Pongamia,
trading, research and development, and management of all
the crops and plantation, including biofuels in the State of
Uttar Pradesh, with an authorized share capital of I 30 crore.

The Company has been promoted by BPCL with Nandan
Cleantec Limited (Nandan Biomatrix Limited), Hyderabad and
the Shapoorji Pallonji group, through their affiliate SP Agri
Management Services Pvt. Ltd. A company petition was filed
before the High Court of Judicature at Allahabad (Lucknow
Bench) for winding up BREL. By the judgement dated December
21, 2015 the Company was ordered to be wound up and an OL
was appointed to proceed in accordance with the provisions of
the Companies Act. All assets and records of the company have
been deposited with the OL and the OL has since submitted a
status request to the High Court of Judicature at Allahabad. A
reply to the report submitted by the OL has been given and the
matter is pending in the High Court of Judicature at Allahabad.

RATNAGIRI REFINERY AND PETROCHEMICALS
LIMITED (RRPCL)

Ratnagiri Refinery and Petrochemicals Limited (RRPCL) is a joint
venture company promoted by IOCL, BPCL and HPCL, with
equity participation in the ratio of 50:25:25. RRPCL has planned
to set up an integrated refinery-cum-petrochemical complex
on the west coast of Maharashtra. The allocation of land for the
project has been delayed. Land offered by the Government
of Maharashtra in the Ratnagiri District of Maharashtra for the
project, has been found technically unviable for the proposed
Refinery & Petrochemical complex. The unsuitability of the land
for the proposed project has been conveyed to Government of
Maharashtra with a request to identify alternate suitable land
parcel on the west coast of Maharashtra for the project. IOCL,
BPCL, HPCL, RRPCL, and Saudi Aramco signed an MoU in April,
2018, with ADNOC joining as a strategic partner in June 2018.
Initially valid for one year, the MoU was extended periodically
with last extension up to April, 2024. While the extension process
was underway, ADNOC withdrew due to changing priorities,
and Saudi Aramco sought to revisit the terms, putting further
extension discussions on hold.

IHB LIMITED (IHBL)

IHBL is a joint venture company of IOCL, BPCL and HPCL,
with equity participation in the ratio of 50:25:25. IHBL was
incorporated in July 2019 as IHB Private Limited to construct,
operate and manage approximately 2,805 km long Kandla-
Gorakhpur LPG Pipeline (KGPL) for meeting the LPG demand
of the bottling plants enroute to the pipeline in the States of
Gujarat, Madhya Pradesh and Uttar Pradesh. The Company
was converted into a public limited company with effect from
April 6, 2021. The pipeline will cater to the LPG requirement of
22 LPG bottling plants of IOCL, HPCL and BPCL located in the
aforementioned states.

The Kandla-Gorakhpur Pipeline would connect and meet the
requirement of eight LPG bottling plants of BPCL situated at
Hariyala, Indore, Bhopal, Jhansi, Kanpur, Lucknow, Allahabad
and Gorakhpur. The approved total cost of the KGPL project was
I 10,088 crore and I 7,972 crore have been incurred till March 31,

2026 under the project. As on March 31, 2026, BPCL has made
an equity contribution of I 764.50 crore. The overall progress
achieved for the KGPL Project as on March 31, 2026 is 95%.
The scheduled completion date of the KGPL project was
December 2021, which was revised by PNGRB to
December 2022 in view of the COVID-19 pandemic.
PNGRB has further revised the project scheduled
completion date to June 2026.

UJJWALA PLUS FOUNDATION (UPF)

UPF was incorporated in July 2017 as a joint venture company
among the three PSU Oil Marketing Companies, viz., BPCL,
HPCL and IOCL (in the ratio of 25:25:50) under Section 8
of the Companies Act, 2013 to provide LPG connections to
poor women who are left out of the Pradhan Mantri Ujjwala
Yojana. Subsequently, various schemes have been announced
by the Government of India, with an objective to expand the
coverage/usage of LPG by the poor in the country. Since the
core purpose of the UPF formation is getting fulfilled by way
of various Government schemes announced from time to
time, no major activity has been undertaken under the UPF.
Accordingly, Board of all 3 OMCs have accorded to wind up this
company. U PF has filed the application for conversion of section
8 company to private limited and then strike off the same. The
conversion application is pending with ROC.

NEUEN GREEN ENERGY PRIVATE LIMITED
(NeuEN)

NeuEN Green Energy Private Limited is a joint venture
incorporated on May 22, 2025, with Sembcorp Green Hydrogen
India Private Limited as the co-promoter on 50:50 basis, for
the development, production, and supply of green hydrogen
along with renewable energy infrastructure in India. As on
March 31, 2026, the authorised share capital of company is
1100 crore and paid up capital is 125 crore, out of which BPCL
has contributed 112.50 crore. The Company is currently in its
pre-operational/development phase. The Company has secured
a contract with Numaligarh Refinery Ltd. (NRL) for the supply of
10,000 tonnes per annum (10 KTPA) of green hydrogen. As part
of this engagement, NeuEN will establish a green hydrogen
production facility at NRL's refinery located in the State of
Assam, supported by a long-term offtake agreement.

Bharat GPS Bioenergy Private Limited (BGBPL)

BGBPL is a joint venture company incorporated on June 9,
2025 between BPCL and GPS Renewables Private Limited
on 50:50 basis, for implementing Compressed Biogas (CBG)
projects across various locations in India. During the year,
GPS Renewables Private Limited transferred its entire equity
shareholding in BGBPL to its step down subsidiary, GPSR
Arya Two Private Limited. Post such transfer, GPSR Arya Two
Private Limited holds 50% of the issued, subscribed and paid-
up equity share capital of BGBPL, with the balance 50% held

by BPCL. The Company has an authorised share capital of
1200 crore as on March 31, 2026, with a paid-up share capital
of 132.24 crore, equally held by both shareholders. As on
March 31, 2026, BGBPL is in the project implementation stage,
with construction activities underway at its Maharajganj
project, and other projects at various stages of land
acquisition, statutory approvals, and engineering.

ARUNACHAL GAS PRIVATE LIMITED (AGPL)

Arunachal Gas Private Limited (AGPL) was incorporated on
November 15, 2025 as a Joint Venture between Bharat
Petroleum Corporation Limited (BPCL) and Oil India Limited (OIL)
on 50:50 basis

The Company has been established to develop, establish, own,
operate and maintain City Gas Distribution (CGD) networks
across the State of Arunachal Pradesh. The Company's
primary objective is to provide clean, safe and reliable natural
gas through the supply of Compressed Natural Gas (CNG)
to the transportation sector and Piped Natural Gas (PNG) to
domestic households, commercial establishments and industrial
consumers, thereby contributing to the promotion of clean
energy and sustainable development in the State.

As on March 31, 2026, the Company's paid-up share capital stood
at 15 crore. During the year, the Company was primarily engaged
in preparatory activities for establishing the CGD infrastructure
and commercial operations are yet to be commenced as on
March 31, 2026.

MANAGEMENT DISCUSSION & ANALYSIS
REPORT (MDA)

The MDA for the year under review, as stipulated under Regulation
34(e) of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, is presented in a separate section forming
part of the Annual Report.

The forward-looking statements made in the MDA are based
on certain assumptions and expectations of future events.
The Directors cannot guarantee that these assumptions are
accurate or these expectations will materialize. The data, facts,
figures and information given in the portions of MDA other than
Company performance have been taken from reports, studies
and websites of various credible agencies.

CONSERVATION OF ENERGY, RESEARCH
AND DEVELOPMENT, TECHNOLOGICAL
ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO

The particulars as prescribed under Sub-Section (3)(m)
of Section 134 of the Companies Act, 2013 read with the
Companies (Accounts) Rules, 2014, are enclosed as Annexure
A to the Directors' Report.

MEMORANDUM OF UNDERSTANDING WITH
MINISTRY OF PETROLEUM & NATURAL GAS

BPCL has entered into a Memorandum of Understanding
(MoU) for FY 2025-26 with MoP&NG. An MoU for FY 2026-27
is under finalization. The Company has achieved an 'Excellent'
performance rating for MoU in FY 2024-25, with a composite
score of 92.67%.

BOARD EVALUATION

As per the provisions of Section 134(3)(p) of the Companies
Act, 2013, a listed entity is required to include a statement
indicating the manner of formal evaluation of performance of
the Board, its Committees and individual Directors. However,
the said provisions are exempted for Government Companies, as
the performance evaluation of the Directors is carried out by the
Administrative Ministry, i.e., Ministry of Petroleum and Natural
Gas (MoP&NG), as per the laid-down evaluation methodology.

In line with the Companies (Accounts) Rules, 2014, rule 8 (5)
(iiia), in the opinion of the Board, the Independent Directors
possess integrity, requisite expertise and experience.

PARTICULARS OF EMPLOYEES AND RELATED
DISCLOSURES

The provisions of Section 134(3)(e) of the Companies Act, 2013
are not applicable to a Government Company. Consequently,
details of Company's policy on Directors' appointment and other
matters are not provided under Section 178 (3) of the Act.

Similarly, Section 197 of the Companies Act, 2013 shall not
apply to a Government Company. Consequently, there is no
requirement of disclosure of the ratio of the remuneration of
each Director to the median employee's remuneration and other
such details, including the statement showing the names and
other particulars of every employee of the Company, who, if
employed throughout/part of the financial year, was in receipt
of remuneration in excess of the limits set out in the Rules in
terms of Section 197(12) of the Act read with Rule 5 (1)/(2) of
the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014.

The Chairman & Managing Director and the Whole-time Directors
of the Company did not receive any remuneration or commission
from any of its Subsidiaries.

BPCL being a Government Company, its Directors are appointed/
nominated by the Government of India as per the Government/
DPE Guidelines, which also include fixation of pay criteria,
determining of qualifications and other matters.

CORPORATE GOVERNANCE

The Report on Corporate Governance, together with the
Auditors' Certificate on compliance of Corporate Governance,
is appended as Annexure D as required under Listing Regulations

and Department of Public Enterprises Guidelines of Corporate
Governance for Central Public Sector Enterprises.

SECRETARIAL STANDARDS

The Company complies with the mandatory Secretarial
Standards issued by the Institute of Company Secretaries
of India.

SOCIAL, ENVIRONMENTAL, ECONOMIC,
STAKEHOLDER, CUSTOMER, HEALTH AND
SAFETY RESPONSIBILITIES AND BUSINESS
RESPONSIBILITY AND SUSTAINABILITY REPORT

The Company is committed to be a responsible Corporate
Citizen in society, which leads to sustainable growth and
economic development for the nation as well as all stakeholders.
In order to be a responsible business to meet its commitment,
the Board of Directors of the Company have adopted and
delegated to the Sustainability Committee the implementation
of a Business Responsibility Policy based on the principles of
National Voluntary Guidelines on Social, Environmental and
Economic Responsibilities of Business as issued by the Ministry
of Corporate Affairs, Government of India. BPCL's Sustainability
Report is in accordance with the Global Reporting Initiative (GRI).

As stipulated under the Listing Regulations, the Business
Responsibility and Sustainability Report describing the
initiatives taken by the Company from the Environmental, Social
and Governance (ESG) perspective is appended as part of the
Annual Report.

TRANSACTIONS WITH RELATED PARTIES

In FY 2025-26, the Company has entered into contracts or
arrangements with related parties, which were in the ordinary
course of business and on an arm's length basis.

The required information on transactions with related parties
are provided in Annexure G in Form AOC-2 in accordance with
Section 134(3) of the Act and Rule 8(2) of the Companies
(Accounts) Rules, 2014.

The Policy on related party transactions, including material
related parties, is available on the Company's website at the link
https://www.bharatpetroleum.in/images/files/related-party-
transaction-policy.pdf

PARTICULARS OF LOANS, GUARANTEES OR
INVESTMENTS

The Company has provided Loans/Guarantees to its Subsidiaries/
Joint Ventures and has made Investments in compliance with
the provisions of the Companies Act, 2013. The disclosure in
this regard as required under Regulation 34 read with Schedule
V of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 is given in Annexure H.

RISK MANAGEMENT

The Company has laid down a Risk Management Policy that
provides a structured and disciplined approach to the risk
process within the Company, to facilitate informed decision¬
making on risks, with specific objectives elaborated as follows:

•    Promote an effective risk management system that supports
BPCL's growth strategy and business objectives.

•    Integrate risk management in strategic decision making.

•    Establish a structured processes for early identification,
assessment, risk response, monitoring, and reporting of risks
arising from internal and external factors.

•    Establish risk governance by providing clarity on the roles and
responsibilities in relation to risk management.

•    Facilitate compliance with the applicable regulatory
requirements related to risk management and reporting.

•    Foster a culture of innovation and risk awareness to actively
pursue opportunities that create value for the organization.

The Company's Risk Framework is based on leading risk
management standards such as ISO 31000:2018, that lay
down the risk management process. The Company has also
implemented Commodity Risk Management Policy and Financial
Risk Management Policy.

A Risk Management Committee has been constituted by the
Board of Directors for reviewing and recommending the risk
management plan comprising risks assessed and their mitigation
plans, along with reviewing and recommending the risk
management report for approval of the Board of Directors with
the recommendation of the Audit Committee. The Company's
internal financial controls and risk management systems are
assessed by the Audit Committee / Board.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 134(3)(c)/(5) of the Companies Act, 2013,
the Directors of the Company confirm that:

a)    In the preparation of the Annual Accounts for the year ended
March 31, 2026, the applicable Accounting Standards have
been followed along with proper explanation relating to
material departures;

b)    The Directors have selected such accounting policies
and applied them consistently and made judgments and
estimates that are reasonable and prudent so as to give a
true and fair view of the state of affairs of the Company at
the end of the financial year and of the profit and loss of the
Company for that period;

c)    The Directors have taken proper and sufficient care for
the maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and detecting
fraud and other irregularities;

d)    The Directors have prepared the annual accounts on a
'going concern' basis;

e)    The Directors have laid down internal financial controls to
be followed by the Company and such internal financial
controls are adequate and are operating effectively; and

f)    The Directors have devised proper systems to ensure
compliance with the provisions of all applicable laws and
such systems are adequate and operating effectively.

DIRECTORS AND KEY MANAGERIAL
PERSONNEL

Shri Krishnakumar Gopalan, Chairman & Managing Director
superannuated from the services of the Company at close of
work on April 30, 2025.

Shri Sanjay Khanna, Director (Refineries) was entrusted with
additional charge of Chairman and Managing Director w.e.f.
May 1, 2025. He was appointed as Chairman & Managing Director
(C&MD) of the Company w.e.f. April 9, 2026, and was also given
additional charge of Director (Refineries) w.e.f. April 9, 2026.

Shri Sukhmal Kumar Jain, Director (Marketing) superannuated
from the services of the Company at close of work on
April 30, 2025.

Shri Rajkumar Dubey, Director (Human Resources) was entrusted
with additional charge of Director (Marketing) w.e.f. May 1, 2025
till July 13, 2025.

Shri Subhankar Sen was appointed as an Additional Director
and Director (Marketing) of the Company w.e.f. July 14, 2025.
Thereafter, he was appointed as Director (Marketing) by
the shareholders at the Annual General Meeting held on
August 25, 2025.

Smt. Kamini Chauhan Ratan, Government Nominee Director,
ceased to be Director w.e.f. June 20, 2025 and Shri Asheesh Joshi,
Government Nominee Director was appointed as an Additional
Director of the Company w.e.f. June 20, 2025. Subsequently,
he was appointed as Director by the shareholders at the Annual
General Meeting held on August 25, 2025. He ceased to be the
Director of the Company w.e.f. December 1, 2025 on account
of completion of his tenure as it was on co-terminus basis with
his tenure at Ministry of Petroleum & Natural Gas.

Dr. (Smt.) Sushma Agarwal, Independent Director ceased to be
the Director of the Company w.e.f. March 10, 2026 on account
of completion of her tenure.

Shri Pradeep Vishambhar Agrawal, Prof. Bhagwati Prasad
Saraswat and Shri Gopal Krishan Agarwal, Independent Directors
were appointed as Additional Directors of the Company w.e.f.
March 28, 2025 for a period of one year or until further orders from
the Ministry of Petroleum & Natural Gas, whichever is earlier. They
were appointed as Independent Directors by the shareholders
at the Annual General Meeting held on August 25, 2025.

They ceased to be the Directors of the Company w.e.f.
March 28, 2026 consequent to completion of their tenure.

Shri Rajkumar Dubey, Director (Human Resources) superannuated
from the services of the Company at close of work on
March 31, 2026. Shri Subhankar Sen, Director (Marketing)
was entrusted with additional charge of Director (Human
Resources) w.e.f. April 1, 2026 up to May 26, 2026.

Shri Vedveer Arya, AS&FA, MoP&NG, was appointed as an
Additional Director of the Company w.e.f. March 9, 2026. As
he has been appointed as Additional Director, he will hold
office till the ensuing Annual General Meeting (AGM). Notice
under Section 160 of the Act has been received proposing his
candidature for the appointment as Director at the AGM.

Shri Pushp Kumar Nayar was appointed as Additional Director
and Director (Human Resources) of the Company w.e.f.
May 27, 2026. As he has been appointed as Additional Director,
he will hold office till the ensuing Annual General Meeting (AGM).
Notice under Section 160 of the Act has been received proposing
his candidature for the appointment as Director at the AGM.

Shri Vetsa Ramakrishna Gupta, Director (Finance), will retire by
rotation at the ensuing AGM as per the provisions of Section 152
of the Act, and being eligible, has offered his candidature for
reappointment as Director at the said meeting.

As required under the Regulation 36(3) of SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015, a
brief resume of the above Directors who are being reappointed
at the AGM is provided in the Notice.

DECLARATION OF INDEPENDENCE

The Independent Directors of the Company have provided
a declaration confirming that they meet the criteria of
independence as prescribed under the Companies Act, 2013
and SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015.

FAMILIARIZATION PROGRAMS

The Company has adopted a policy for the training requirements
of Board Members. The details thereof with the programs
sponsored for familiarization of Independent Directors with the
Company are available at the Company's web linkhttps://www.
bharatpetroleum.in/images/files/details-of-familiarization-
programmes-2024-25.pdf

AUDIT COMMITTEE

BPCL had Audit Committee till March 27, 2026 in the year
comprising all Independent Directors. All the meetings of Audit
Committee were held during the year till that date. The tenure
of all members of Audit Committee was till March 27, 2026.
Presently, BPCL does not have any Independent Director. BPCL,
being a Government Company, Government of India has been
approached for nomination of requisite number of Independent
Directors. On receipt of the nomination from Government of
India, the Audit Committee would be reconstituted.

The details of the composition of the Audit Committee, terms
of reference, meetings held, etc. are provided in the Corporate
Governance Report, which forms part of this Report. During the
year, there were no cases where the Board had not accepted any
recommendation of the Audit Committee.

VIGIL MECHANISM

There exists a vigil mechanism to report genuine concerns
in the Company. The Company has implemented a Whistle
Blower Policy to ensure greater transparency in all aspects of
the Company's functioning. The objective of the policy is to
build and strengthen a culture of transparency and to provide
employees with a framework for responsible and secure
reporting of improper activities.

The vigil mechanism provides adequate safeguards against
victimization of persons who use the mechanism and has
provision for direct access to the Chairperson of the Audit
Committee in appropriate or exceptional cases. The details of
establishment of this mechanism are disclosed at the Company's
web linkhttps://www.bharatpetroleum.in/images/files/whistle-
blower-policy-final.pdf

NUMBER OF MEETINGS OF THE BOARD AND
COMMITTEES OF THE BOARD

Seventeen meetings of the Board of Directors were held during
the year. The details of the Board and Sub-Committee meetings
held during the year and attendance of the members thereat
are provided in the Corporate Governance Report, which forms
a part of this Report. The intervening gap between the Board
meetings was within the period prescribed under the Companies
Act, 2013 and the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015.

ANNUAL RETURN

As required under Section 92 (3) of the Companies Act, 2013, the
Annual Return of the Company for the FY 2025-26 is available
on the Company website at the following link:https://www.
bharatpetroleum.in/bharat-petroleum-for/investors/disclosure-
under-regulation-46-and-62-of-sebi-lodr-regulations/
shareholders-meetings/annual-general-meeting

ADEQUACY OF INTERNAL FINANCIAL
CONTROLS WITH REFERENCE TO THE
FINANCIAL STATEMENTS

The details are included in the Management Discussion and
Analysis Report (MDA), which forms part of this Report.

STATUTORY AUDITORS

The Comptroller & Auditor General of India (C&AG), under the
provisions of Section 139(5) of the Companies Act, 2013, had
appointed M/s. M M NISSIM & CO. LLP, Chartered Accountants,
Mumbai and M/s. Manohar Chowdhry & Associates, Chartered
Accountants, Mumbai, as Statutory Auditors for FY 2025-26.
These appointed auditors will hold office till conclusion of the

ensuing Annual General Meeting. C&AG is in the process for
appointment of Statutory Auditors for FY 2026-27. The Auditors'
Report for FY 2025-26 does not contain any qualification,
reservation or adverse remark.

REPORTING OF FRAUDS BY AUDITORS

The Auditors have not reported any instance of fraud under
sub-section (12) of section 143 of Companies Act 2013.

COST RECORD AND COST AUDIT

The Company has prepared and maintained cost records as
prescribed under Section 148(1) of the Companies Act, 2013
for FY 2025-26. The Cost Audit Report for FY 2024-25 has
been filed with the Ministry of Corporate Affairs before due
date in XBRL Format. The Cost Auditors for FY 2024-25 were
M/s. Dhananjay V. Joshi & Associates and M/s. Diwanji & Co.

The Cost Auditors appointed for FY 2025-26 are M/s. Dhananjay
V. Joshi & Associates and M/s. Rohit & Associates. The Cost
Auditor shall, within a period of 180 days from the closure of the
financial year, forward the Cost Audit Report and the Company
is required to file the Cost Audit Report within 30 days of receipt
of the same.

SECRETARIAL AUDITOR

M/s. Ragini Chokshi & Co., Company Secretaries, has been
appointed as the Secretarial Auditor of the Company from
FY 2025-26 till FY 2029-30, to conduct the Secretarial Audit.
The Secretarial Audit Report for the year ended March 31, 2026
is appended as Annexure I to this Report.

The Secretarial Audit Report contains observations that during
the period under review, the Company has complied with the
provisions of the Act, Rules, Regulations, Guidelines, Standards,
etc. as applicable to the Company, except to the extent as
mentioned below:

• The Company has not complied with the requirement under
Regulation 17(1)(a)/(b) of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015, as the
Chairman of the Company is an Executive Director and the
number of Independent Directors is less than half of the Board
of Directors and the requirements under Regulations 18 to 21
of the said Regulation in respect of constitution of statutory
sub-committees for the period from March 28, 2026 to
March 31, 2026 in the financial year.

Explanation by the Board to the above observations in the
Secretarial Audit Report:

1. BPCL is a Government Company under Section 2(45) of
the Companies Act, 2013 under the administrative control
of Ministry of Petroleum & Natural Gas (MoP&NG). The
nomination of all categories of Directors are done by the
Government of India in accordance with the laid down
guidelines of Department of Public Enterprises. Accordingly,
the subject matter of nomination/ appointment of

adequate number of Independent Directors falls under the
purview of the Government of India. BPCL has from time to
time communicated to the Ministry of Petroleum & Natural
Gas with respect to the requirement of requisite number
of Independent Directors under the Companies Act, 2013
and SEBI (Listing Obligations & Disclosure Requirements)
Regulations, 2015 (SEBI LODR).

2. BPCL had shortage of one Independent Director since
May 1, 2023. Consequent to completion of tenure, four
Independent Directors ceased to be the Directors of the
Company in March 2026. As a result, BPCL did not have
any Independent Director on the Board for the period
starting from March 28, 2026 to March 31, 2026. Hence,
the Company was not able to comply with provisions of
Regulation 17(1)(a)/(b) of SEBI (LODR) relating to optimum
combination of Executive and Non-executive Directors,
requisite number of Independent Directors, for the entire
year and provisions of Regulation 18 to 21 regarding
proper composition of Audit Committee & Nomination
and Remuneration Committee, Stakeholders Relationship
Committee, Risk Management Committee for the period as
stated in the observations under the Secretarial Audit.

BPCL will be able to comply with the requirements under the
SEBI LODR / Act on receipt of nomination of Independent
Directors from Government of India.

GENERAL

There were no significant or material orders passed by the
Regulators or Courts or Tribunals impacting the going concern
status and Company's operations in future. The Company has not
issued equity shares with differential rights/sweat equity shares.

The provisions of the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act 2013, have been
implemented across the organization with the clear objective of
providing protection to women against sexual harassment at the
workplace and for the prevention and redressal of complaints of
sexual harassment. Central as well as Regional / Refinery Internal
Committees (IC) have been constituted, headed by senior
women employees, to receive and redress complaints of sexual
harassment in the workplace and to drive awareness about the
provisions of the Act.

In FY 2025-26, one complaint of sexual harassment was
received. The matter was addressed and closed within the same
financial year.

The Internal Committees have worked extensively on creating
awareness on the relevance of sexual harassment issues. Apart
from the sensitization workshops conducted for employees
of the organization, it is ensured that a session on Prevention
of Sexual Harassment at the Workplace (POSH) is included as
part of the Induction Training of all new recruits. Additionally,
an e-learning module on POSH has been included as part of
the mandatory trainings and was assigned to all employees.

The customer-centric approach of BPCL and its emphasis on
innovation has earned the Company the trust and enduring
support of business partners and shareholders alike. It has
inspired BPCL to actively build a dynamic Company that plays a
pivotal role in India's evolving energy landscape.

As India advances on its energy transition journey, BPCL remains
committed to supporting the nation's clean energy ambitions
through focused investments in sustainable and future-ready
energy solutions. The Company is steadily advancing its clean
and future-ready energy portfolio as part of its broader strategy
to achieve Net-Zero operational emissions by 2040. Through
these efforts, BPCL aims to strengthen energy resilience, create
sustainable growth opportunities and contribute meaningfully
to building a low-carbon future for India.

For and on behalf of the Board of Directors

Sd/-

Place: Mumbai    Sanjay Khanna

Date: July 31, 2026    Chairman & Managing Director