HPCL reports 6% decline in profit for Q2 amidst rising fuel prices

Hindustan Petroleum Corp has reported a 6% decline in consolidated net profit for the second quarter of FY27. The company returned to profitability in Q2 FY27 after suffering a significant loss in Q1 FY27. Revenue from product sales increased by 26% compared to the previous year's second quarter. Despite the quarterly revenue growth, losses were reported for the first half of FY27 due to high crude oil prices.

Mumbai: State-run Hindustan Petroleum Corp on Thursday reported a decline of 6% in its consolidated net profit for the second quarter of FY27 at ₹3,625.22 crore against ₹3,859 crore in the year-ago period.

The company returned to profitability in Q2FY27, after reporting a loss of ₹12,264.67 crore in Q1FY27, supported by healthy marketing margins after the retail fuel prices were hiked by a cumulative ₹7 in May 2026.

During the quarter, HPCL's consolidated revenue from sale of products rose 26% to ₹1.38 lakh crore in Q2FY27 against ₹1.09 lakh crore in Q2FY26. Total income for the quarter under review also rose by 25.8% to ₹1.39 lakh crore against ₹1.11 lakh crore in Q2FY26.

For the first half of FY27, however, the company reported a loss of ₹8,639.45 crore, compared with a profit of ₹7,970 crore in April-September FY26, on the back of crude oil prices surpassing $100 per barrel due to the West Asia war. This squeezed the company's marketing margins.

"During April-September 2026, due to the suppressed marketing margins on certain petroleum products, the profitability is impacted," the company said in a regulatory filing.

Refining margins, however, improved during the first half of FY27. The company's average gross refining margin during April-September stood at $27.89 per barrel against $5.95 per barrel in year-ago period.