Summary:
Hindustan Petroleum Corporation Limited reported Q2FY27 consolidated net profit of ₹3,625.22 crore, down 6% year-on-year. Revenue rose 26% to ₹1,39,113.50 crore, while gross refining margins surged to $32.15 per barrel from $8.80 a year earlier.
State-run Hindustan Petroleum Corporation Limited (HPCL) reported a 6% year-on-year (YoY) decline in consolidated net profit to ₹3,625.22 crore for the quarter ended September 30, 2026 (Q2FY27), compared with ₹3,859.30 crore in the corresponding quarter last year. Despite the decline in profit, the company recorded a sharp improvement in refining margins, while revenue from operations increased by more than 26%.
HPCL returned to profitability after reporting a consolidated net loss of ₹12,264.67 crore in Q1FY27, supported by improved fuel marketing margins following cumulative retail petrol and diesel price increases of over ₹7 per litre in May 2026. However, higher expenses and pressure from elevated crude oil prices continued to affect overall profitability.
HPCL Q2 Results: Revenue Rises 26% While Profit Declines
HPCL's consolidated revenue from operations increased to ₹1,39,113.50 crore in Q2FY27 from ₹1,10,396.98 crore in Q2FY26, reflecting strong growth in operating income. However, total expenses also increased significantly, limiting the improvement in net earnings.
The company's consolidated profit before tax (PBT) increased by approximately 33% YoY to ₹6,820.13 crore from ₹5,130.91 crore. Despite the improvement in pre-tax earnings, higher tax expenses weighed on the bottom line.
The key consolidated financial figures reported in the newspaper are presented below:
| Particulars | Q2FY27 | Q2FY26 |
| Revenue from operations | ₹1,39,113.50 crore | ₹1,10,396.98 crore |
| Total expenses | ₹1,33,228.03 crore | ₹1,05,981.18 crore |
| Profit before tax | ₹6,820.13 crore | ₹5,130.91 crore |
| Consolidated net profit | ₹3,625.22 crore | ₹3,859.30 crore |
The tax expense increased to ₹3,195 crore from ₹1,272 crore in the corresponding quarter last year, contributing to the decline in consolidated net profit despite improved pre-tax profitability.
HPCL Refining Margins Surge to $32.15 Per Barrel
HPCL's gross refining margin (GRM), a key measure of profitability from processing crude oil into petroleum products, increased to $32.15 per barrel during July-September 2026 from $8.80 per barrel in the corresponding quarter last year.
The improvement represents a nearly fourfold increase in refining margins, reflecting stronger earnings from the company's refining operations.
For H1FY27, HPCL reported an average GRM of $27.89 per barrel, compared with $5.95 per barrel in the corresponding period of FY26.
The company's refineries processed 6.20 million metric tonnes (MMT) of crude oil in Q2FY27, operating at 100% of their combined capacity.
Higher Crude Oil Prices Continue to Pressure Profitability
Despite the improvement in refining margins, HPCL continued to face pressure from higher crude oil prices and subdued marketing margins on petroleum products.
For H1FY27, the company reported a consolidated net loss of ₹8,639.45 crore, compared with a net profit of ₹7,970 crore in the corresponding period last year.
The decline in profitability came as the West Asia conflict pushed crude oil prices above $100 per barrel, increasing input costs and putting pressure on fuel marketing margins.
HPCL Standalone Profit Falls 9% in Q2FY27
On a standalone basis, HPCL reported a net profit of ₹3,482.62 crore in Q2FY27, down approximately 9% from ₹3,830 crore in the corresponding quarter last year.
The decline came despite higher revenue and improved refining profitability. Increased tax expenses and elevated operating costs weighed on the company's standalone earnings.
However, the company recorded a sequential recovery, returning to profitability after reporting a standalone net loss of approximately ₹11,526 crore in Q1FY27.
What Lies Ahead for HPCL?
HPCL's Q2FY27 performance reflects a divergence between improving refining margins and continued pressure on overall profitability. While stronger refining margins and higher revenue supported operating performance, elevated crude oil prices and increased tax expenses limited the improvement in net earnings.
Going forward, crude oil price movements, domestic fuel pricing, marketing margins and refining spreads will remain important factors influencing HPCL's financial performance.
The company's return to quarterly profitability marks a recovery from the previous quarter's losses. However, the consolidated loss recorded in H1FY27 highlights the continuing impact of volatile energy prices on the company's earnings.
