Hindustan Petroleum Corporation Limited (HINDPETRO)

Oil Gas & Consumable Fuels · Petroleum Products · NSE · Updated 3 August 2026

By StockFin Research Team • AI-Assisted Analysis • Source: BSE/NSE Filings

₹389.75 ↓ 3.48% (1Y)

🎯 Key Takeaways

Hindustan Petroleum Corporation Limited (HINDPETRO) is currently in a transitional phase marked by strong operational performance and record profitability in FY26, followed by a sharp reversal into net losses in Q1 FY27 due to external geopolitical and regulatory pressures. While the company achieved record revenue of ₹4,78,543 crore and PAT of ₹17,175 crore in FY26 with 26.
Revenue grew 9.9% QoQ to ₹1.19 L Cr in Q3FY25.
⚠️ Ongoing geopolitical instability in West Asia continues to pressure refining margins and increase crude liability risks, with no immediate resolution

Market Cap

₹77,963

P/E Ratio

12.9

Div Yield

0.00%

Promoter

0.0%

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📖 The Story

Hindustan Petroleum Corporation Limited (HINDPETRO) is currently in a transitional phase marked by strong operational performance and record profitability in FY26, followed by a sharp reversal into net losses in Q1 FY27 due to external geopolitical and regulatory pressures. While the company achieved record revenue of ₹4,78,543 crore and PAT of ₹17,175 crore in FY26 with 26.04 MMT crude throughput and 106.3% capacity utilization, recent quarters show margin compression from West Asia crises, LPG under-recoveries, and foreign exchange volatility. Management is responding with the Samriddhi 2.0 program targeting ₹1,500 crore EBITDA improvement and ₹1,000 crore accrual in FY27, while advancing green hydrogen, renewable energy, and EV infrastructure initiatives. The narrative has shifted from consistent growth to managing short-term losses amid strategic investments in energy transition and operational resilience.

📰 What's Happening

In Q1 FY27, HPCL reported a consolidated net loss of ₹12,265 crore (up from ₹11,526 crore in the prior quarter), driven by a ₹17,712.65 crore loss in the Downstream Petroleum segment and a negative LPG under-recovery buffer of ₹16,405.92 crore. Despite revenue increasing 20.5% YoY to ₹1,45,126 crore, margins were pressured by West Asia market conditions and crude liability impacts. The board approved results on July 22, 2026, and recognized ₹1,980 crore from a ₹7,920 crore LPG compensation scheme to be disbursed over 12 months. Management highlighted progress on Samriddhi 2.0, targeting ₹1,500 crore EBITDA improvement with ₹1,000 crore expected in FY27, while advancing the Rajasthan Refinery (91.6% complete), solar projects, and expansion of EV charging infrastructure to 5,806 stations.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q4FY23	Q1FY24	Q2FY24	Q3FY24	Q4FY24	Q1FY25	Q2FY25	Q3FY25
Revenue	1.15 L Cr	1.19 L Cr	1.03 L Cr	1.18 L Cr	1.22 L Cr	1.21 L Cr	1.08 L Cr	1.19 L Cr
Operating Profit	5,708	10,245	8,581	2,689	5,329	2,634	3,214	6,422
OPM %	4.5%	8.1%	8.0%	1.8%	4.0%	1.7%	2.5%	5.0%
Net Profit	3,608	6,766	5,827	713	2,709	634	143	2,544
EPS	₹25.43	₹47.69	₹41.08	₹5.03	₹19.09	₹2.98	₹0.67	₹11.95

The financial trajectory shows a stark contrast between FY26's record performance and Q1 FY27's reversal into loss, despite revenue growth. While revenue rose 20.5% YoY to ₹1,45,126 crore in Q1 FY27, net loss widened to ₹12,265 crore from a ₹4,111 crore profit in Q1 FY26, indicating significant margin erosion. This pressure stems from external factors like West Asia instability and LPG under-recoveries, which management acknowledges as temporary but impactful. The company maintained strong operational metrics, processing 6.52 MMT of crude at 107% capacity and achieving US$23.80 barrel refining margins, up from US$3.08. However, rising interest expenses and crude liability pressures offset operational gains. The sequential improvement from Q4 FY26's loss of ₹11,526 crore to Q1 FY27's ₹12,265 crore loss suggests stabilization but not recovery, with management attributing the trend to transient geopolitical factors rather than structural weakness.

🔮 Management Outlook & What's Next

Management expressed a cautiously optimistic outlook focused on structural improvement through the Samriddhi 2.0 initiative, targeting ₹1,500 crore in EBITDA improvement with ₹1,000 crore expected to be realized in FY27. They emphasized progress in strategic areas including the commissioning of the HPCL Rajasthan Refinery, expansion of renewable energy (241 MW capacity), green hydrogen projects (5 KTPA agreement), and EV infrastructure (5,806 charging stations). The company also highlighted its record FY26 performance — ₹4,78,543 crore revenue, ₹17,175 crore PAT, and 26.04 MMT crude throughput — as a foundation for future growth. Management reiterated its Net Zero by 2040 commitment and plans to advance sustainability investments while navigating short-term macroeconomic headwinds, signaling confidence in long-term value creation despite current losses.

Extracted from official company announcements. Not StockFin.ai's opinion.

⚖️ Peer Comparison — Petroleum Products

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
Reliance Industries Limited	18.08 L Cr	21.7	11.2%	9.9%	0.41
Indian Oil Corporation Limited	1.90 L Cr	17.4	—	—	—
Bharat Petroleum Corporation Limited	1.23 L Cr	4.9	25.4%	30.2%	0.63
Hindustan Petroleum Corporation Limited	77,963	12.9	—	—	—
Mangalore Refinery and Petrochemicals Limited	26,345	32.0	—	—	—
Castrol India Limited	17,947	18.7	—	—	—
Chennai Petroleum Corporation Limited	15,025	40.4	—	—	—
Gulf Oil Lubricants India Limited	4,665	13.1	—	—	—
Savita Oil Technologies Limited	2,805	24.7	—	—	—
Veedol Corporation Limited	2,497	16.0	—	—	—

🔗 Peer Stock Analyses

RELIANCE IOC BPCL MRPL CASTROLIND

⚠️ Risk Factors

1. Ongoing geopolitical instability in West Asia continues to pressure refining margins and increase crude liability risks, with no immediate resolution in sight. 2. Persistent LPG under-recoveries have created a negative buffer of ₹16,405.92 crore, directly impacting profitability despite government compensation schemes. 3. Rising interest expenses and foreign exchange volatility are eroding net margins, as highlighted in recent quarterly results. 4. The company's transition toward sustainability and energy transition investments requires sustained capital outlay, which may pressure near-term cash flows and returns, especially if market conditions do not improve.

📋 Recent Filings

🧠 Analyst's Read

Hindustan Petroleum is navigating a pivotal transition from a period of record profitability to managing short-term losses amid external shocks and strategic reinvestment. The company's strong operational foundation and clear energy transition roadmap provide long-term confidence, but near-term performance remains vulnerable to geopolitical and regulatory factors. Investors should monitor the rollout of Samriddhi 2.0, progress on green hydrogen and renewable projects, and the impact of LPG compensation disbursements on margin recovery in upcoming quarters.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-08-03.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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