HPCL stock: Q2 profit returns as refining margins surge
Published on 11/06/2026 at 01:22 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSHPCL profit recovery faces margin pressure
- HPCL returned to consolidated profit in the second quarter of fiscal 2027 after a substantial loss in the preceding quarter.
- Refining margins and fuel sales improved, while first-half profitability remained negative.
- The company continued spending on refining, marketing, pipelines and lower-carbon energy projects.
Hindustan Petroleum Corporation Limited returned to consolidated profit in the quarter ended September 30, 2026, after a loss in the preceding quarter. The Economic Times reported the result on October 22, 2026.
Consolidated net profit reached INR 3,625.22 crore in the second quarter of fiscal 2027, compared with a net loss of INR 12,264.67 crore in the first quarter. Profit still declined 6.1 percent from INR 3,859 crore a year earlier. Revenue from operations increased 26.1 percent year on year to INR 139,140 crore.
Refining gains lift quarterly earnings
HPCL's gross refining margin before export cess rose to USD 32.15 per barrel from USD 8.80 per barrel in the year-earlier quarter. Refinery throughput reached 6.20 million metric tonnes, with the combined facilities operating at full capacity.
Total sales, including exports, increased 5.5 percent year on year to 12.73 million metric tonnes. Petrol and diesel sales rose 10 percent to 7.78 million metric tonnes, while LPG sales reached 2.03 million metric tonnes.
First-half loss remains a risk
Despite the quarterly recovery, the first half of fiscal 2027 remained loss-making. The average refining margin for the first six months was USD 27.89 per barrel, sharply above USD 5.95 per barrel a year earlier, but marketing conditions continued to weigh on overall profitability.
Capital expenditure reached INR 2,085 crore in the quarter and INR 3,819 crore in the first half. Projects included refining and marketing infrastructure, a completed LPG pipeline segment in West Bengal and a blue hydrogen unit at the Visakh refinery.
HPCL's integrated energy model
HPCL is an India-based state-owned energy company operating refineries, fuel retail outlets, LPG distribution, lubricants, aviation fuel, natural gas, pipelines and petrochemicals. Its business also includes research and development, international trade and renewable-energy projects, according to the company's official website.
Hindustan Petroleum at a glance
- Company: Hindustan Petroleum Corporation Limited
- ISIN: INE094A01015
- Ticker: HINDPETRO.NS
- Business: Refining, fuel marketing, LPG, pipelines, natural gas and petrochemicals
- Reporting period: Second quarter of fiscal 2027, ended September 30, 2026
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