CHENNAI: Public sector oil marketing company Hindustan Petroleum Corporation Limited (HPCL) reported a consolidated net profit of Rs 4,110.93 crore for the first quarter of FY 2025-26, marking a sharp rise of about 548% from Rs 633.94 crore in the same period last year. On a standalone basis, profit jumped even more dramatically—up around 1,128% year-on-year—to Rs 4,370.87 crore compared to Rs 355.80 crore a year earlier. The surge was driven by inventory gains from stable retail fuel prices amid lower input costs, along with improved operating margins.
Total revenue remained steady at about Rs 1.20 lakh crore, marginally lower than Rs 1.21 lakh crore in Q1 FY25. Refinery throughput rose 15.6% to 6.66 million metric tonnes from 5.76 MMT a year ago, while total sales, including exports, increased 3.2% to 13.04 MMT. Domestic sales of petrol and diesel combined were up 1.1%, and LPG sales saw a robust 6.6% growth.
Although gross refining margins declined to US $3.08 per barrel from US $5.03 a year earlier, HPCL’s operating margin improved sharply to 5.04% from 0.54%, and net profit margin rose to 3.64% from just 0.29%. Sequentially, the company recorded a 30% increase in standalone profit over the previous quarter, supported by higher EBITDA and improved margins.
The company’s board has also approved plans to raise up to Rs 10,000 crore through private placement of debt instruments to strengthen its balance sheet and support strategic projects. Overall, the quarter’s results highlight HPCL’s strong operational performance and margin recovery despite softer refining spreads, setting a positive tone for the rest of the financial year.