HPCL Q4 profit jumps 46% on strong refining margins

Hindustan Petroleum Corporation Limited reported a sharp rise in profit for the fourth quarter and full financial year 2025-26, supported by stronger refining margins, higher refinery throughput, and steady growth in fuel sales volumes.

The state-run oil marketing company announced its financial results for the quarter and year ended March 31, 2026, on Wednesday.

The company said the performance reflected resilient refinery operations, sustained market sales growth, and continued progress in strengthening its financial position.

The company’s board also recommended a final dividend of ₹19.25 per equity share with a face value of ₹10 for FY26, subject to shareholder approval at the annual general meeting.

Profit rises sharply in FY26

HPCL reported a 133% year-on-year increase in standalone profit after tax for FY26 at ₹17,175 crore, compared with ₹7,365 crore in FY25.

Consolidated profit after tax rose 168% year-on-year to ₹18,047 crore in FY26 from ₹6,736 crore a year earlier.

For the March quarter, standalone profit after tax increased 46% to ₹4,902 crore from ₹3,355 crore in the corresponding quarter last year.

Consolidated quarterly profit stood at ₹6,065 crore, compared with ₹3,415 crore in Q4 FY25.

Revenue from operations for FY26 rose to ₹4,78,543 crore from ₹4,66,346 crore in FY25.

Quarterly revenue increased to ₹1,23,602 crore from ₹1,18,334 crore in the year-ago period.

HPCL’s quarterly net profit stood at about 49.02 billion rupees, helped by stronger refining margins and stable fuel demand.

Refining margins and throughput improve

The company reported robust gross refining margins during the financial year.

Gross refining margin for FY26 stood at $8.79 per barrel, compared with $5.74 per barrel in FY25.

In the fourth quarter, GRM increased to $14.27 per barrel from $8.44 per barrel a year earlier.

HPCL’s refineries recorded their highest-ever crude throughput of 26.04 million metric tonnes during FY26, marking a 3% increase from 25.27 MMT in FY25.

The company said its refineries also achieved their highest-ever distillate yield of 75.8% during the year.

Visakh Refinery processed 16.04 MMT of crude during FY26 and operated at 107% of its installed capacity.

Mumbai Refinery processed 10.00 MMT and operated at 105% of its capacity.

During the March quarter, total refinery throughput stood at 6.43 MMT.

The company also processed four new grades of crude oil during the quarter, taking the total number of grades processed during FY26 to 52.

Fuel sales remain steady

HPCL reported total sales volumes, including exports, of 51.45 MMT during FY26, up 3.3% year-on-year.

Domestic sales growth stood at 2.6%, while combined petrol and diesel sales rose 2.4% to 31.06 MMT.

LPG sales increased 5.2% to 9.41 MMT during the year.

For the fourth quarter, total sales volumes rose 2.4% year-on-year to 13.0 MMT.

Combined petrol and diesel sales for the quarter increased 3.3% to 7.83 MMT.

Financial discipline and expansion plans

HPCL said continued focus on financial discipline helped improve its standalone debt-equity ratio to 0.80 as of March 31, 2026, from 1.38 a year earlier.

The company incurred capital expenditure of ₹15,705 crore during FY26, including ₹4,611 crore in the March quarter.

Investments were focused on refining and marketing infrastructure, subsidiaries, joint ventures, and new business lines.

HPCL Rajasthan Refinery Limited commenced crude processing trials during February 2026 and processed 176 TMT of crude during the trial run.

The company said a fire broke out at the CDU unit of the refinery on April 20, 2026.

The fire was brought under control without any loss of life or injuries.

Restoration work is currently underway.

Sustainability and energy transition initiatives

HPCL continued expanding its renewable and clean energy initiatives during FY26.

The company added one compressed biogas plant under the SATAT scheme during the quarter, taking the total number of plants to 18.

HPCL also added 75 CNG outlets during Q4, taking the total count to 2,253. Solar-powered retail outlets increased to 23,824, representing 95% of its retail network powered by renewable energy.

The company signed multiple agreements during the year, including collaborations related to sustainable aviation fuel, LNG marketing, green hydrogen procurement, and used oil recycling infrastructure.

Shares of HPCL were trading 4.8% higher in afternoon trade on Wednesday, although the stock has declined around 23% so far this year.