HPCL slips after reporting Q1 FY27 net loss of Rs 11,526 crore

Hindustan Petroleum Corporation (HPCL) fell 2.61% to Rs 384.95 after the state-run oil marketing company reported a standalone net loss of Rs 11,526.41 crore in Q1 FY27, compared with a net profit of Rs 4,370.87 crore in Q1 FY26.

Despite the loss, the company's total income (excluding excise duty) increased 26.9% year-on-year (YoY) to Rs 1,39,889.86 crore in Q1 FY27.

HPCL said its financial performance reflected the impact of the ongoing West Asia crisis, although its refining and marketing operations remained resilient during the challenging period.

The company posted a pre-tax loss of Rs 17,446.10 crore in Q1 FY27, compared with a profit before tax of Rs 5,825.89 crore in the corresponding quarter of the previous year.

Average Gross Refining Margin (GRM) surged to $23.80 per barrel during the June quarter from $3.08 per barrel a year earlier, before accounting for the impact of the Special Additional Excise Duty and Road & Infrastructure Cess on exports of select petroleum products. However, HPCL said suppressed marketing margins on certain petroleum products adversely impacted profitability.

During the quarter, HPCL's refineries processed 6.52 million metric tonnes (MMT) of crude oil, operating at 107% of installed capacity.

Total sales volume, including exports, increased 0.6% YoY to 13.12 MMT. Combined petrol (MS) and diesel (HSD) sales rose 8.1% to 8.8 MMT, while LPG sales stood at 1,729 thousand metric tonnes (TMT). Pipeline throughput during the quarter was 6.61 MMT.

Operating margin deteriorated to negative 12.38% in Q1 FY27 from 5.04% in the year-ago quarter, while net profit margin slipped to negative 7.94% from 3.64%.

HPCL incurred capital expenditure of Rs 1,734 crore during the quarter, primarily towards strengthening refining and marketing infrastructure, expanding capacities through subsidiaries and joint ventures, entering new business segments, and improving operational efficiencies.

The company continued to expand its retail network during the quarter. As of 30 June 2026, HPCL had 25,160 retail outlets, 6,391 LPG distributors and 54,586 PNG connections. Its city gas distribution (CGD) network also expanded with the addition of 598 inch-km of steel pipelines and 693 inch-km of MDPE pipelines.

Hindustan Petroleum Corporation is mainly engaged in the business of refining of crude oil and marketing of petroleum products, production of hydrocarbons as well as providing services for management of E&P Blocks.

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