HPCL Reports Consolidated Net Profit of ₹3,625 Crore in Q2 FY27

State-run Hindustan Petroleum Corporation (HPCL) on Thursday reported a 6 per cent year-on-year decline in its consolidated net profit at around ₹3,625 crore during the second quarter of fiscal year 2027. The company noted that gains from higher refining margins were offset by losses resulting from the sale of petrol, diesel, and liquefied petroleum gas (LPG) below market rates.

Sequentially, the public sector oil marketing company recovered from a loss of around ₹12,265 crore recorded in the previous quarter. HPCL operates more than 25,000 fuel retail outlets nationwide and posted a consolidated total income of roughly ₹1.40 lakh crore in Q2 FY27. This compares with ₹1.46 lakh crore in Q1 FY27 and ₹1.11 lakh crore in Q2 FY26.

Consolidated total expenses for the quarter stood at ₹1.33 lakh crore, against ₹1.64 lakh crore in Q1 FY27 and ₹1.06 lakh crore in Q2 FY26. HPCL stated that the financial results reflect resilient and robust performance by its refineries and marketing divisions amidst the ongoing West Asia crisis. Accruals under Project Samridhi 2.0, the company's EBITDA improvement programme, stood at ₹327 crore, or approximately $0.18 per barrel, during the first half of FY27.

The company’s average gross refining margin during April-September in FY27 rose to $27.89 per barrel, compared to $5.95 in the corresponding period of the previous year. This figure is calculated before factoring in the impact of the Special Additional Excise Duty and Road & Infrastructure Cess on the export of select petroleum products.

Profitability during April-September 2026 was impacted due to suppressed marketing margins on certain petroleum products. Public sector oil marketing companies have been selling petrol, diesel, and LPG below market rates to shield consumers from volatile prices driven by the West Asia conflict.

According to HPCL's filing with the BSE, the cumulative negative buffer on the sale of LPG cylinders below market rates reached around ₹18,048.82 crore as of September 30, 2026. This compares with ₹12,798.67 crore on March 31, 2026, and ₹14,240.64 crore on September 30, 2025.

Other expenses for April-September 2026 included around ₹313.80 crore toward losses on foreign currency transactions and translations, compared to ₹798.18 crore during the same period in the previous year. Refineries recorded a crude throughput of 6.20 million tonnes during Q2 FY27, operating at 100 per cent capacity. Total sales, including exports, rose by 5.5 per cent year-on-year to 12.73 million tonnes.

HPCL's capital expenditure in Q2 FY27 stood at ₹2,085 crore, bringing the cumulative capex for the first half of FY27 to ₹3,819 crore. The capital expenditure was primarily directed toward strengthening refining and marketing infrastructure and improving operating efficiencies.

"HPCL's Q2 FY27 performance highlights the dual pressures faced by state-run oil marketing companies during periods of geopolitical tension. While robust refining operations and higher gross refining margins provided solid support, absorbing losses on retail fuel sales to protect consumers continues to impact bottom-line profitability. Managing these unrecognised negative buffers and maintaining infrastructure investments will remain key operational priorities for the company going forward." — Dr. Shishir Gupta, Founder & CEO, StartupLanes