Hindustan Petroleum Corporation Limited (HPCL) has posted a standalone net profit of Rs 3,483 crore in the second quarter of FY27, even as the ongoing West Asia crisis continues to challenge the energy sector.
The company’s refining and marketing divisions delivered a resilient performance, backed by a sharp rise in refining margins and stronger fuel sales.
HPCL’s gross refining margin (GRM), before export cess, surged to US$ 32.15 per barrel in the July-September quarter, compared with US$ 8.80 per barrel in the corresponding quarter last year. Revenue from operations climbed to Rs 1,39,140 crore from Rs 1,10,323 crore a year earlier.
However, quarterly profit remained below the Rs 3,830 crore recorded in Q2 FY26, while the company reported a substantial loss for the first half of the financial year.
For the six months ended September 30, 2026, HPCL reported a standalone net loss of Rs 8,044 crore, against a profit after tax of Rs 8,201 crore in the corresponding period last year.
Consolidated results showed a net profit of Rs 3,625 crore for Q2 FY27, compared with Rs 3,859 crore a year earlier. For the first half, consolidated net loss stood at Rs 8,639 crore, against a profit of Rs 7,970 crore in H1 FY26.
Despite the losses, revenue from operations rose sharply to Rs 2,84,267 crore in the first half, up from Rs 2,30,458 crore in the year-ago period. Gross refining margin before export cess also climbed to US$ 27.89 per barrel from US$ 5.95 per barrel.
HPCL’s refineries processed 6.20 million metric tonnes (MMT) of crude oil in Q2 FY27, operating at 100% of capacity.
The Visakh Refinery processed 3.60 MMT at 95% capacity utilisation, while the Mumbai Refinery processed 2.60 MMT, operating at 109% of capacity.
For the first half, crude throughput reached 12.72 MMT, with the refineries collectively operating at 104% of capacity. The Visakh Refinery processed 7.57 MMT at 101% capacity utilisation, while the Mumbai Refinery processed 5.15 MMT at 108%.
The performance underscores the company’s continued focus on maximising refinery utilisation amid a volatile global energy environment.
HPCL’s total sales, including exports, increased 5.5% year-on-year to 12.73 MMT in Q2 FY27. Domestic sales grew 4.9%, while combined petrol and diesel sales rose 10% to 7.78 MMT.
LPG sales totalled 2.03 MMT during the quarter, while pipeline throughput reached 6.99 MMT.
For H1 FY27, total sales, including exports, grew 2.9% to 25.85 MMT. Domestic sales advanced 2.3%, and combined petrol and diesel sales increased 9% to 16.55 MMT. LPG sales stood at 3.76 MMT, while pipeline throughput reached 13.83 MMT.
HPCL invested Rs 2,085 crore in capital expenditure during Q2 FY27, taking cumulative investment for the first half to Rs 3,819 crore. The spending was directed towards strengthening refining and marketing infrastructure and improving operational efficiency.
In a boost to its Rajasthan refinery project, HPCL Rajasthan Refinery Limited (HRRL) received an upgrade in its long-term credit rating from AA to AA+, with a Stable outlook, from CRISIL Ratings.
HRRL also refinanced or repriced debt arrangements worth Rs 51,970 crore with lenders at a lower cost.
HPCL completed mechanical work on the 201-km LPG pipeline connecting Haldia and Panagarh in West Bengal during the quarter. The pipeline is now in the pre-commissioning stage.
The company also commissioned an Open Access Fuel Farm facility at Bhogapuram Airport and commenced refuelling operations.
HPCL commissioned what it described as India’s first refinery blue hydrogen unit at its Visakh Refinery during the quarter. The facility is based on patented Higas Technology and HP Novel Amine.
The company also launched HP Navya, a 10-kg composite LPG cylinder, and partnered with Swiggy Instamart to expand its presence in the quick-commerce ecosystem. HPCL released 0.36 lakh new connections up to September 2026.
Its EBITDA improvement programme, Project Samriddhi 2.0, generated accruals of Rs 327 crore during H1 FY27, equivalent to US$ 0.18 per barrel.
HPCL’s research and development operations also expanded their intellectual property portfolio. As of September 30, 2026, the HP Green R&D Centre had filed 800 patents, of which 339 had been granted.
The company further expanded its international lubricants business, recording sales in Turkey and Sudan and extending its footprint to 35 countries worldwide.
HPCL had 25,245 retail outlets and 6,394 LPG distributors as of September 30, 2026. Its network also included 77,984 piped natural gas (PNG) connections.
The company continued to expand its presence in cleaner mobility and renewable energy infrastructure. It had 2,296 compressed natural gas (CNG) outlets and 5,880 electric vehicle charging stations at the end of September.
A total of 24,172 retail outlets had been solarised, representing 96% of its outlets.
HP Renewable & Green Energy Ltd., HPCL’s renewable energy arm, secured Consent to Establish approvals from State Pollution Control Boards for nine compressed biogas (CBG) projects.
It also secured awards for four municipal solid waste-based projects from urban local bodies in Punjab and Bihar.
The company received Central Electricity Authority approval for its 70-MWp Gaaliveedu Solar Project.
With higher refining margins, rising fuel sales and continued investment in infrastructure, HPCL delivered a strong operational showing in the September quarter. However, the sharp first-half losses highlight the gap between improved operating indicators and overall financial performance as the company navigates a volatile global energy market.
