HPCL Share Price Falls Up to 5% as Q1 FY27 Loss Ends 14-Quarter Profit Streak

HPCL share price fell as much as 5% on Thursday after the state-owned oil marketing company reported its first quarterly loss in more than three years, as a surge in crude oil prices weighed on its marketing business during the June quarter.

At around 12:30 pm, HPCL shares were trading 3.73% lower at ₹380.45 on the NSE after hitting an intraday low of ₹376.55. The Nifty 50 was down 0.39% at 23,986.80.

Hindustan Petroleum Corporation Ltd (HPCL) reported a consolidated net loss of ₹12,264.67 crore for the April-June quarter, compared with a net profit of ₹4,110.93 crore in the corresponding period last year. The June quarter marked the company's first quarterly loss since Q3 FY23, bringing a run of 14 consecutive profitable quarters to an end.

The company attributed the loss to pressure on marketing margins after crude oil prices surged during the quarter amid geopolitical tensions in West Asia.

Revenue, however, remained resilient. Revenue from operations rose 21% year-on-year to ₹1.44 lakh crore from ₹1.19 lakh crore, while total income increased to ₹1.45 lakh crore from ₹1.20 lakh crore in the year-ago quarter.

HPCL Q1 FY27 Results: Refining Performance Remains Strong

Despite the weak bottom line, HPCL's refining operations continued to perform well during the quarter.

The company reported an average gross refining margin (GRM) of $23.80 per barrel, sharply higher than $3.08 per barrel recorded a year earlier.

Operational metrics also remained healthy. Product sales increased 0.6% year-on-year to 13.12 million tonnes, while petrol and diesel sales rose 8.1% to 8.8 million tonnes.

HPCL processed 6.52 million tonnes of crude oil during the quarter, with its refineries operating above installed capacity. The Visakh refinery processed 3.97 million tonnes at 106% capacity utilisation, while the Mumbai refinery processed 2.55 million tonnes at 108%.

Why Did HPCL Share Price Fall Today

Investors focused on the sharp deterioration in profitability, which overshadowed the company's strong refining performance.

The spike in crude oil prices during the quarter squeezed fuel marketing margins, resulting in HPCL's first quarterly loss in 14 quarters. Although refining margins remained robust and revenue continued to grow, the earnings miss weighed on investor sentiment, pushing the stock lower in Thursday's session.

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