HPCL Q2 profit falls 6.1% to Rs 3,625 crore; revenue rises 26%

Hindustan Petroleum Corporation Ltd reported consolidated net profit of Rs 3,625.22 crore for the second quarter of FY27, down 6.1% from Rs 3,859 crore a year earlier, according to Economic Times Markets’ October 22 report. The result marked a return to profit after a net loss of Rs 12,264.67 crore in the preceding quarter.

Revenue from operations climbed 26.1% year-on-year to Rs 1,39,140 crore, against Rs 1,10,323 crore in Q2FY26. For the first half of FY27, revenue reached Rs 2,84,267 crore, compared with Rs 2,30,458 crore in the corresponding year-earlier period.

Refining margins rise sharply

Gross refining margin before export cess rose to $32.15 per barrel in Q2FY27 from $8.80 a year earlier. The first-half margin, also before export cess, increased to $27.89 per barrel from $5.95.

HPCL processed 6.20 million metric tonnes of crude during the quarter, operating at 100% of its combined refinery capacity. Visakh Refinery processed 3.60 million tonnes at 95% utilisation, while Mumbai Refinery handled 2.60 million tonnes at 109%.

First-half crude throughput totalled 12.72 million tonnes at 104% capacity utilisation. Visakh accounted for 7.57 million tonnes and Mumbai for 5.15 million tonnes.

Petrol and diesel sales lead volume growth

Total sales, including exports, grew 5.5% year-on-year to 12.73 million tonnes in the quarter, while domestic sales increased 4.9%. Combined petrol and diesel sales rose faster, gaining 10% to 7.78 million tonnes.

Quarterly LPG sales stood at 2.03 million tonnes and pipeline throughput at 6.99 million tonnes. For the first half, overall sales increased 2.9% to 25.85 million tonnes, with domestic sales up 2.3%. Petrol and diesel sales together rose 9% to 16.55 million tonnes.

Infrastructure spending and debt repricing

HPCL incurred capital expenditure of Rs 2,085 crore during Q2, taking first-half spending to Rs 3,819 crore. The expenditure went towards refining and marketing infrastructure and operational efficiency.

HPCL Rajasthan Refinery Ltd received a long-term credit rating upgrade from CRISIL Ratings to AA+ from AA, with a stable outlook. Debt arrangements worth Rs 51,970 crore were also refinanced or repriced at a lower cost, the report said.

The 201-km LPG pipeline connecting Haldia and Panagarh in West Bengal reached mechanical completion during the quarter but remained in pre-commissioning. Separately, HPCL commissioned an open-access fuel farm at Bhogapuram Airport and began refuelling operations.

Retail network and new energy projects

As of September 30, HPCL operated 25,245 retail outlets and 6,394 LPG distributorships, alongside 77,984 piped natural gas connections. Its network included 2,296 CNG outlets and 5,880 electric vehicle charging stations. Solar installations covered 24,172 retail outlets, or 96% of the network.

The company reported commissioning what it described as India’s first refinery blue hydrogen unit at Visakh Refinery, using patented Higas technology and HP Novel Amine. Its HP Green R&D Centre had filed 800 patents cumulatively by September 30, of which 339 had been granted.

HP Renewable & Green Energy Ltd secured consent to establish nine compressed biogas projects from state pollution control boards and awards for four municipal solid waste-based projects in Punjab and Bihar. The 70 MWp Gaaliveedu Solar Project received Central Electricity Authority approval. These milestones represent approvals and awards, rather than confirmation that the projects are operational.

HPCL said its earnings-improvement programme, Project Samriddhi 2.0, generated Rs 327 crore in accruals during the first half, equivalent to $0.18 per barrel. It also launched HP Navya, a 10-kg composite LPG cylinder, partnered with Swiggy Instamart for quick-commerce distribution and extended lubricant sales to Turkey and Sudan, bringing its international footprint to 35 countries.

Shares close lower

HPCL shares closed at Rs 340.80 on the NSE on October 22, down 1.87% from the previous close of Rs 347.30. The reported year-to-date decline stood at 31.65%, with market capitalisation at Rs 60,803 crore.