Hindustan Petroleum Corporation Ltd. (HPCL) returned to profit in the July to September quarter of FY27, beating analyst estimates. The oil refiner reported standalone net profit of Rs. 3,483 crore, reversing its Rs. 11,526 crore loss in the previous quarter. Stronger refining margins helped restore operating profitability, although pressure on marketing margins remained a concern.
HPCL reported revenue of Rs. 1.34 lakh crore, slightly above Bloomberg’s Rs. 1.33 lakh crore estimate. Revenue nevertheless declined around 4% from Rs. 1.40 lakh crore in Q1 FY27, while EBITDA reached Rs. 9,074 crore. Analysts had expected an EBITDA loss of Rs. 141 crore, making the operating turnaround a key earnings highlight.
Refining Margins Support the Recovery
HPCL’s gross refining margin before export cess rose to USD 32.15 per barrel in Q2 FY27. The figure compared with USD 23.80 per barrel in the previous quarter and USD 8.80 a year earlier. Stronger refining economics helped offset challenges from subdued marketing margins and volatile crude oil prices.
The company also received Rs. 3,960 crore in compensation for domestic LPG under-recoveries during April to September. This support contributed to its financial performance during the first half of the fiscal year.
Fuel Sales and Infrastructure Spending Grow
HPCL’s total sales, including exports, increased 5.5% year over year to 12.73 million metric tons. Domestic sales grew 4.9%, while combined petrol and diesel sales climbed 10% to 7.78 million metric tons.
Capital expenditure reached Rs. 2,085 crore during the quarter, supporting refining and marketing infrastructure. HPCL reported 25,245 retail outlets, 6,394 LPG distributors and 77,984 piped natural gas connections as of September 30.
Despite the quarterly recovery, standalone net profit remained below the Rs. 3,830 crore recorded a year earlier. Sustained earnings growth will depend on refining margins, crude price movements and marketing profitability.
The year-on-year comparison also highlights continuing pressure on HPCL’s earnings. Standalone profit fell 9% from Rs. 3,830 crore in Q2 FY26, with higher crude costs and tax expenses weighing on performance. The quarterly recovery remains encouraging, although future results will depend on how refining gains compare with marketing costs.
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