Hindustan Petroleum Corporation Limited Reports Q1 FY27 Net Loss Despite Robust Revenue Growth and ₹1,734 Cr Capex
Mumbai, July 22, 2026: Hindustan Petroleum Corporation Limited (HPCL) reported its unaudited financial results for the quarter ended June 30, 2026, delivering strong revenue growth despite facing significant challenges from volatile global energy markets and the ongoing geopolitical tensions in West Asia.
While the company recorded a net loss during the quarter due to the exceptional market environment, HPCL continued to demonstrate operational resilience with refinery utilization exceeding installed capacity, steady growth in fuel sales, and continued investments in expanding its infrastructure.
Revenue Rises Over 20% Year-on-Year
HPCL reported Revenue from Operations of ₹1,45,126 crore in Q1 FY27, compared with ₹1,20,135 crore in the corresponding quarter of the previous financial year.
The increase in revenue reflects higher product realizations and sustained demand for petroleum products, even as the company navigated a challenging refining and marketing environment.
Financial Performance
Key Financial Highlights
| Particulars | Q1 FY27 | Q1 FY26 |
|---|---|---|
| Revenue from Operations | ₹1,45,126 crore | ₹1,20,135 crore |
| Gross Refining Margin (GRM) | US$23.80/bbl | US$3.08/bbl |
| Standalone Profit After Tax | Loss of ₹11,526 crore | Profit of ₹4,371 crore |
| Consolidated Profit After Tax | Loss of ₹12,265 crore | Profit of ₹4,111 crore |
Despite reporting a significant accounting loss during the quarter, HPCL highlighted that its operating performance remained strong, supported by healthy refinery operations and continued investments in strategic growth projects.
Refineries Operate Above Installed Capacity
HPCL’s refineries processed 6.52 million metric tonnes (MMT) of crude oil during the quarter, operating at 107% capacity utilization, demonstrating high operational efficiency and strong asset performance.
The company’s ability to maintain refinery throughput above nameplate capacity underscores the reliability of its refining operations.
Fuel Sales Continue to Grow
Overall sales volume, including exports, reached 13.12 MMT, representing a 0.6% year-on-year increase.
The combined sales of Motor Spirit (Petrol) and High-Speed Diesel (HSD) grew by 8.1% year-on-year to 8.8 MMT, reflecting sustained demand from the transportation and industrial sectors.
Strategic Investments Continue
HPCL invested ₹1,734 crore in capital expenditure during the first quarter as it continued to strengthen its refining, marketing, and infrastructure businesses.
One of the major milestones during the quarter was the declaration of Scheduled Commercial Operation (SCO) for HPCL Rajasthan Refinery Limited (HRRL) on June 22, 2026. The refinery was subsequently dedicated to the nation, marking an important achievement in HPCL’s long-term expansion strategy.
The company also received in-principle approval from the Gujarat Maritime Board for all-weather operations at the HPLNG Chhara LNG Terminal, which is expected to enhance LNG handling capabilities and improve supply chain efficiency.
Retail Network Expansion
HPCL continued expanding its nationwide marketing network during the quarter.
As of June 30, 2026, the company operated:
- 25,160 retail fuel outlets
- 6,391 LPG distributorships
The expanding distribution network is expected to support future growth in fuel marketing and customer reach across India.
Focus on Operational Efficiency
The company launched ‘Samriddhi 2.0’, an operational excellence initiative aimed at delivering an EBITDA improvement of approximately ₹1,500 crore through cost optimization, efficiency improvements, and business transformation.
HPCL also continued expanding its non-fuel retail business through strategic partnerships, creating additional revenue opportunities beyond traditional fuel sales.