Hindustan Petroleum Reports Q1 FY27 Loss Despite Higher Revenue

Hindustan Petroleum Corporation Ltd. (HPCL) reported a standalone net loss of ₹11,526.41 crore for the quarter ended 30 June 2026 (Q1 FY27), compared with a net profit of ₹4,370.87 crore in the corresponding quarter last year. The company's total comprehensive loss stood at ₹12,332.76 crore, against a comprehensive income of ₹4,575.87 crore a year earlier.

Revenue, however, remained strong during the quarter. Total income increased to ₹1,46,407.30 crore, from ₹1,20,657.65 crore in the year-ago period. Revenue from the sale of products rose to ₹1,44,530.72 crore, while other operating revenue stood at ₹595.50 crore and other income came in at ₹1,281.08 crore.

The company's total expenses climbed sharply to ₹1,63,853.40 crore, compared with ₹1,14,831.76 crore in the same quarter last year. As a result, HPCL reported a loss before tax of ₹17,446.10 crore, against a pre-tax profit of ₹5,825.89 crore a year earlier. The company recorded a tax credit of ₹5,919.69 crore, resulting in the reported net loss for the quarter. Earnings per share (EPS) came in at a loss of ₹54.17, compared with earnings of ₹20.54 per share in Q1 FY26.

Margins Hit By Weak Marketing Environment

HPCL said its average gross refining margin (GRM) during the quarter was US$23.80 per barrel, compared with US$3.08 per barrel in the corresponding period last year. However, the company noted that profitability was impacted by suppressed marketing margins on certain petroleum products.

The company also recognised ₹1,980 crore during the April-June quarter as compensation towards LPG under-recoveries. This amount represented three monthly instalments of the compensation approved by the Ministry of Petroleum and Natural Gas. Despite this, the cumulative unrecognised negative buffer on LPG stood at ₹16,405.92 crore as of 30 June 2026.

Operational Performance Remains Stable

Operationally, HPCL's refining and marketing performance remained largely stable during the quarter. Crude throughput stood at 6.52 million metric tonnes (MMT), compared with 6.66 MMT a year earlier. Domestic market sales were 12.24 MMT, marginally lower than 12.26 MMT in the corresponding quarter last year. Export sales increased to 0.88 MMT, from 0.78 MMT, while pipeline throughput was 6.61 MMT, compared with 6.70 MMT a year ago.

HPCL's debt-equity ratio increased to 1.52 times as of 30 June 2026, from 1.01 times a year earlier. Outstanding debt rose to ₹72,596.95 crore, while net worth declined to ₹47,735.73 crore following the quarterly loss. The current ratio stood at 0.56, while the net profit margin slipped to negative 7.94% from a positive 3.64% in the corresponding quarter last year.

Prior to the announcement of the quarterly results, the Hindustan Petroleum share price declined by 2.89% to close ₹395.20 on the National Stock Exchange.

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