HPCL Posts Narrower-Than-Expected Q1 Loss of Rs 11,526 Crore

Hindustan Petroleum Corporation Ltd. (HPCL) reported a consolidated net loss of Rs 11,526 crore for the first quarter of FY27, as volatility in crude oil prices weighed on the company's earnings. The loss marked a sharp reversal from the Rs 4,902 crore net profit recorded in the previous quarter. However, the result was better than market expectations, with the reported loss coming in lower than the Bloomberg consensus estimate of Rs 12,296 crore. Despite the earnings setback, HPCL posted strong growth in revenue during the quarter.

Revenue from operations increased 17.4% quarter-on-quarter to Rs 1.40 lakh crore, up from Rs 1.15 lakh crore in the previous quarter and above the Bloomberg estimate of Rs 1.29 lakh crore. The company also reported an EBITDA loss of Rs 16,141 crore, compared with an EBITDA profit of Rs 8,979 crore in the preceding quarter. Although operational performance weakened, the EBITDA loss was narrower than analysts had anticipated. HPCL's average gross refining margin (GRM) improved significantly to $23.8 per barrel, compared with $3.08 per barrel in the corresponding period last year.

HPCL's refining operations remained robust during the quarter, with its refineries processing 6.52 million metric tonnes (MMT) of crude oil at 107% of installed capacity. The Visakh Refinery processed 3.97 MMT of crude while operating at 106% capacity, whereas the Mumbai Refinery processed 2.55 MMT at 108% capacity. The company also expanded its refining capabilities by successfully processing two new grades of crude oil during the quarter, highlighting operational flexibility despite challenging market conditions.

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On the sales front, HPCL recorded total sales, including exports, of 13.12 MMT, representing a modest 0.6% year-on-year increase. Domestic sales were largely unchanged, slipping 0.1% from the same period last year. Combined petrol and diesel sales rose 8.1% year-on-year to 8.8 MMT, while LPG sales stood at 1,729 thousand metric tonnes (TMT). The results reflect the mixed impact of volatile crude prices and strong refining performance, with investors likely to focus on how fuel marketing margins and global oil prices influence the company's performance in the coming quarters.

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