HPCL Reports 6% Drop in Q2FY27 Net Profit to ₹3,625 Crore

Hindustan Petroleum Corporation Limited (HPCL) has announced a 6% year-on-year decrease in its consolidated net profit for the second quarter of the financial year 2026-27, amounting to ₹3,625.22 crore. This marks a recovery from a substantial loss of ₹12,264.67 crore in the previous quarter, attributed to improved marketing margins following a government-mandated increase in retail fuel prices by ₹7 in May 2026.

Despite this quarterly recovery, HPCL faced a significant loss of ₹8,639.45 crore during the first half of FY27, contrasting sharply with a profit of ₹7,970 crore recorded in the same period of the previous fiscal year. The ongoing conflict in West Asia has driven crude oil prices above $100 per barrel, adversely affecting the company's marketing margins. HPCL acknowledged that suppressed margins on certain petroleum products have impacted profitability during the April-September 2026 period.

In terms of revenue, HPCL reported a 26% increase in consolidated revenue from product sales, reaching ₹1.38 lakh crore in Q2FY27 compared to ₹1.09 lakh crore in Q2FY26. The total income for the quarter also rose by 25.8%, totaling ₹1.39 lakh crore against ₹1.11 lakh crore in the same quarter last year. The company's average Gross Refining Margin (GRM) improved significantly to $27.89 per barrel, up from $5.95 per barrel during the corresponding period last year.

The Ministry of Petroleum and Natural Gas has communicated a compensation of ₹7,920 crore to HPCL for under-recoveries on domestic LPG sales, which will be disbursed in 12 monthly installments starting from November 2025. For the April-September 2026 period, HPCL has recognized six installments totaling ₹3,960 crore under 'Sale of Products'. However, the company reported a cumulative negative buffer of ₹18,048.82 crore as of September 30, 2026.

HPCL's crude throughput for Q2FY27 was recorded at 6.20 million tonnes, down from 6.57 million tonnes in Q2FY26. Domestic sales increased to 11.71 million tonnes, while exports rose to 1.02 million tonnes. The company invested ₹2,085 crore in capital expenditure during Q2FY27 and ₹3,819 crore in the first half of FY27, focusing on enhancing refining and marketing infrastructure and improving operational efficiencies.