Hindustan Petroleum Corporation Q2 FY27 results: net profit down 6.1% to ₹3,625 crore, revenue up 26.0%

How did Hindustan Petroleum Corporation perform in Q2 FY27?

Hindustan Petroleum Corporation reported consolidated revenue of ₹1,39,114 crore for Q2 FY27, up 26.0% from ₹1,10,397 crore in the year-ago quarter. EBITDA rose 32.0% to ₹9,048 crore from ₹6,852 crore, and the EBITDA margin moved up 0.3 percentage points to 6.5% from 6.2%. Profit before tax rose 28.5% to ₹6,347 crore from ₹4,938 crore.

Net profit for the quarter was ₹3,625 crore, down 6.1% from ₹3,859 crore in Q2 FY26, with basic EPS of ₹17.04 against ₹18.14. Against the previous quarter, the company moved from a net loss of ₹12,265 crore to a net profit of ₹3,625 crore, while revenue fell 4.2% from ₹1,45,225 crore and the EBITDA margin moved up 17.6 percentage points to 6.5%.

On a standalone basis, the company reported net profit of ₹3,483 crore in Q2 FY27 against ₹3,830 crore in Q2 FY26, with revenue of ₹1,39,140 crore, up 26.1%. The company reported gross refining margin before export cess of US$ 32.15 per barrel for the quarter against US$ 8.80 per barrel a year ago.

What changed in Hindustan Petroleum Corporation's costs and profit?

Total expenses rose 25.7% to ₹1,33,228 crore from ₹1,05,981 crore in the year-ago quarter. Cost of materials increased by ₹8,911 crore to ₹45,573 crore, other expenses fell by ₹4,823 crore to ₹10,023 crore, and employee cost declined by ₹115.82 crore to ₹711.13 crore.

Finance costs rose by ₹435.06 crore to ₹1,259 crore and depreciation increased by ₹291.38 crore to ₹1,904 crore. Other income fell by ₹60.42 crore to ₹461.90 crore. There was no exceptional item in either the quarter reported or the year-ago quarter.

Tax expense rose by ₹1,923 crore to ₹3,195 crore from ₹1,272 crore, which was higher than the rise in profit before tax. The company said the results reflected performance of the Refineries and Marketing divisions in the midst of the ongoing West Asia crisis.

How did the first half of FY27 go?

For the first half of FY27, consolidated revenue was ₹2,84,339 crore, up 23.3% from ₹2,30,590 crore in H1 FY26, and total income was ₹2,85,419 crore, up 23.2% from ₹2,31,620 crore. The company reported a gross refining margin before export cess of US$ 27.89 per barrel for the half year against US$ 5.95 per barrel a year ago.

The first half swung to a loss. Profit before tax moved from ₹10,596 crore in H1 FY26 to a loss of ₹11,852 crore, and net profit moved from ₹7,970 crore to a net loss of ₹8,639 crore. Basic EPS was negative ₹40.6 against positive ₹37.46 in the year-ago half. Standalone, the company reported a net loss of ₹8,044 crore against a profit of ₹8,201 crore.

What do the balance sheet and cash flow show?

Total assets rose to ₹2,13,815 crore as on 30 September 2026 from ₹2,03,039 crore as on 31 March 2026, while total equity fell to ₹52,688 crore from ₹65,556 crore. Borrowings rose to ₹68,855 crore from ₹50,899 crore, and cash was lower at ₹103.68 crore against ₹124.29 crore. Inventories stood at ₹45,464 crore against ₹39,559 crore.

Operating cash flow for H1 FY27 was negative ₹7,805 crore, against positive ₹19,093 crore in H1 FY26. Investing cash flow was negative ₹3,365 crore compared with negative ₹5,743 crore a year earlier, while financing cash flow was positive ₹15,716 crore against negative ₹7,201 crore. Capital expenditure was ₹4,182 crore for the half year against ₹4,099 crore.

How has Hindustan Petroleum Corporation done over the last 8 quarters?

Revenue rose year on year in each of the last five quarters. Across the reported series, revenue was highest at ₹1,45,225 crore in Q1 FY27 and lowest at ₹1,10,397 crore in Q2 FY26, before easing to ₹1,39,114 crore in Q2 FY27.

Net profit bottomed at a loss of ₹12,265 crore in Q1 FY27 and recovered to ₹3,625 crore in Q2 FY27, against a high of ₹6,065 crore in Q4 FY26. The EBITDA margin reached its low of -11.1% in Q1 FY27, peaked at 7.4% in Q4 FY26 and stood at 6.5% in the quarter reported.

Which businesses drove the quarter?

Downstream Petroleum reported revenue of ₹1,39,299 crore in Q2 FY27, up 26.3% from ₹1,10,308 crore in the year-ago quarter, with EBIT of ₹7,339 crore against ₹5,414 crore. The segment's EBIT margin was 5.3%.

The Others segment reported revenue of ₹84.23 crore, down 14.8% from ₹98.88 crore, with EBIT of negative ₹69.74 crore against negative ₹85.51 crore. Its EBIT margin was -82.8%.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with the auditors' limited review report. The meeting began at 2:30 p.m. and concluded at 4:40 p.m. The company also filed disclosures on the utilisation of proceeds of its non-convertible debentures and a NIL security cover certificate.

The same-day filings did not announce a dividend, a fund raise or any appointment. The company stated that the deviation statement for proceeds of public issue, rights issue, preferential issue or qualified institutional placement was not applicable, and that there was no default in payments on outstanding loans, revolving facilities or unlisted debt securities. An investor presentation for the 23 October 2026 conference call was also posted on the company website.

What did Hindustan Petroleum Corporation's management say?

The earnings call was held on 27 October 2026. No guidance, priorities, risks or analyst concerns from the call were recorded in the available information, and the company made no guidance change. The company said in its press release that the results reflected performance of the Refineries and Marketing divisions in the midst of the ongoing West Asia crisis.

The company said capex in Q2 FY27 was ₹2,085 crore and ₹3,819 crore for the first half, focused on strengthening refining and marketing infrastructure and improving operating efficiencies. It also said the debt arrangement of ₹51,970 crore of HPCL Rajasthan Refinery Limited was refinanced or repriced with lenders at a lower cost.

How did Hindustan Petroleum Corporation shares react?

The results were filed after market hours on 22 October 2026. From the price when the filing appeared, the stock moved down 1.4% after five minutes, down 1.0% after 15 minutes and down 1.7% after 30 minutes. On the reaction day, the stock closed 0.7% lower than the previous close of ₹340.80.

By the next day's close, the stock was up 0.1% from its pre-results close, and by the fifth session it was down 0.1%. The Refineries & Marketing sector median moved down 1.7% on the reaction day and down 0.6% over five sessions, so the stock's excess move was 1.0 percentage point on the day and 0.6 percentage point over five sessions. Earlier reaction-day moves were down 2.0% on 22 July 2026, up 5.5% on 13 May 2026 and down 7.7% on 25 October 2024.

How did other Refineries & Marketing companies do?

Seven other Refineries & Marketing companies had filed this quarter by 4 November 2026, and their median revenue growth was 28.6%. Three peers grew slower than Hindustan Petroleum Corporation's 26.0% revenue growth and four grew faster. Of the six peers compared on profit, four reported higher profit.