Mumbai, May 13: Hindustan Petroleum Corporation Limited (HPCL) reported a strong financial performance for the fourth quarter of FY26, delivering earnings significantly ahead of market expectations despite challenging macroeconomic conditions, including higher crude oil prices, INR depreciation, and weak implied auto-fuel margins.
The company reported robust operational performance across both marketing and refining segments, supported by improved marketing margins and strong refining profitability.
HPCL’s adjusted EBITDA for Q4 FY26 stood at ₹70 billion, registering a 23% quarter-on-quarter growth. Recurring Profit After Tax (PAT) came in at ₹29 billion, up 6% sequentially. Including LPG compensation received during the quarter, reported PAT stood at ₹49 billion, reflecting a 20% quarter-on-quarter increase.
The Board of Directors also recommended a final dividend of ₹19.25 per equity share, in addition to the interim dividend of ₹5 per share already paid for FY26.
The company’s marketing segment delivered stronger-than-expected performance during the quarter. Calculated marketing margins improved to approximately ₹5.5 per litre compared to ₹5 per litre in the previous quarter, despite adverse industry conditions. Overall marketing volumes stood at 13 million metric tonnes, with domestic sales remaining stable.
In the refining segment, HPCL reported Gross Refining Margins (GRMs) of $14.3 per barrel during Q4 FY26. Refinery throughput increased to 6.4 million metric tonnes during the quarter. Visakh Refinery operated at 105% capacity utilisation, while Mumbai Refinery operated at 109% capacity utilisation.
HPCL also highlighted progress on its strategic growth projects. HPCL Rajasthan Refinery Limited (HRRL) commenced crude processing during trial operations in February 2026. However, the company informed that a fire incident occurred at the CDU unit of the refinery on April 20, 2026, which was promptly brought under control. Restoration work is currently underway, and commissioning activities are expected to resume shortly.
The company continued to strengthen its balance sheet during the quarter, reducing standalone debt by ₹11 billion sequentially to ₹476 billion. FY26 capital expenditure stood at ₹157 billion.
HPCL further stated that LPG under-recoveries for Q4 FY26 increased to ₹13.5 billion. The company has received compensation support from the Ministry of Petroleum and Natural Gas towards historical LPG under-recoveries, with instalment-based disbursements continuing through FY26.
Operational efficiency initiatives under “Project Samriddhi” contributed an EBITDA improvement of approximately ₹17 billion during FY26.
HPCL management indicated that detailed guidance and further outlook commentary would be shared during the company’s earnings call scheduled later today.
