Hindustan Petroleum Corporation Limited Earnings Summary — Q1 FY2027
HPCL Faces Massive Quarterly Loss as Suppressed Marketing Margins Offset High Refining Gains
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 22.3% sequentially in Q1 FY2027.
- Revenue of ₹1.41 Lakh Cr is 26.9% higher year-on-year.
- Revenue has compounded at 9.5% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹-12,265 Cr is 398.3% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 49.6% annualised across the period.
- Operating margin stands at -11.5% in Q1 FY2027.
- Operating margin compressed by 1820 bps year-on-year.
- Over the last two years operating margin has contracted by 1330 bps.
- PBT margin is -12.9%.
- Expenses grew 51.6% against revenue growth of 26.9%.
- Operating profit of ₹-16,122 Cr is 316.1% lower year-on-year.
- Operating leverage has been under pressure recently.
- 4 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 38/100 (Weak) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Accelerating | 1,40,584 | 1,14,937 | 1,15,153 | 1,00,856 | 1,10,825 | 1,09,633 | 1,10,608 | 99,957 | 1,13,888 | 1,14,678 |
| Expenses | Accelerating | 1,56,707 | 1,05,726 | 1,08,155 | 94,003 | 1,03,365 | 1,03,845 | 1,05,113 | 97,661 | 1,11,800 | 1,09,796 |
| Operating Profit | Volatile | -16,122 | 9,211 | 6,998 | 6,852 | 7,461 | 5,788 | 5,495 | 2,296 | 2,089 | 4,882 |
| Operating Margin | Volatile | -11.5% | 8.0% | 6.1% | 6.8% | 6.7% | 5.3% | 5.0% | 2.3% | 1.8% | 4.3% |
| Other Income | Volatile | 648 | 1,910 | 727 | 715 | 507 | 930 | 462 | 526 | 933 | 594 |
| Interest | Improving | 818 | 1,020 | 734 | 824 | 817 | 757 | 931 | 944 | 733 | 720 |
| Depreciation | Stable | 1,878 | 2,457 | 1,674 | 1,612 | 1,604 | 1,623 | 1,518 | 1,530 | 1,484 | 1,632 |
| Profit Before Tax | Volatile | -18,170 | 7,644 | 5,317 | 5,131 | 5,547 | 4,338 | 3,509 | 348 | 805 | 3,124 |
| Tax | Volatile | -5,905 | 1,578 | 1,306 | 1,272 | 1,436 | 923 | 965 | 206 | 171 | 415 |
| Net Profit | Volatile | -12,265 | 6,065 | 4,011 | 3,859 | 4,111 | 3,415 | 2,544 | 143 | 634 | 2,709 |
| Net Margin | Volatile | -8.7% | 5.3% | 3.5% | 3.8% | 3.7% | 3.1% | 2.3% | 0.1% | 0.6% | 2.4% |
Key Takeaways
- HPCL reported a significant standalone net loss of ₹11,526.41 crore for Q1 FY2027, a sharp reversal from the ₹4,901.50 crore profit in the prior quarter.
- Despite the net loss, Gross Refining Margins (GRM) surged to $23.80/bbl compared to $3.08/bbl in the same quarter last year.
- Profitability was severely impacted by suppressed marketing margins on certain petroleum products and a massive spike in raw material costs.
- Cost of materials consumed nearly doubled QoQ, rising from ₹37,744.99 crore to ₹63,562.06 crore.
- The corporation continues to carry a large unrecognised negative buffer for LPG under-recoveries totaling ₹16,405.92 crore as of June 30, 2026.
- Standalone Debt-Equity ratio deteriorated significantly to 1.52x from 0.80x in the previous quarter due to increased borrowing requirements.
- Average crude throughput remained stable at 6.52 MMT while domestic market sales saw a slight decline to 12.24 MMT.
Management Guidance
Management noted that profitability was primarily impacted by the inability to fully pass through costs in the marketing segment. The company recognized ₹1,980 crore as LPG compensation from the Government of India during the quarter as part of a staggered disbursement plan.
Sentiment Shift
Deteriorating
The transition from a healthy multi-billion rupee profit to a massive double-digit billion rupee loss highlights extreme margin compression and vulnerability to pricing regulations.
Outlook
The outlook remains clouded by suppressed marketing margins despite robust refining performance. Recovery depends on potential fuel price revisions or further government compensation for under-recoveries. The high debt-equity level adds financial pressure in the near term.
From the Annual Report (Key Quotes)
“Average Gross Refining Margin (GRM) during the period ended 30th June, 2026 was US $23.80 per BBL as against US $3.08 per BBL during the corresponding previous period.”
“Due to the suppressed marketing margins on certain petroleum products, the profitability is impacted.”
“The cumulative negative buffer (unrecognised) for the Corporation as on 30th June, 2026 is ₹16,405.92 Crore.”
Official Quarterly Documents
Ask AI about this quarter
This summary is AI-generated from Hindustan Petroleum Corporation Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.
← Back to Hindustan Petroleum Corporation Limited AI analysis