Mumbai: Hindustan Petroleum Corporation Limited (HPCL) reported robust financial results for the third quarter ended December 31, 2025, reflecting a sharp improvement in profitability driven by higher refining margins, steady fuel demand, and government compensation for LPG under-recoveries. The PSU oil major continued to strengthen its balance sheet despite volatility in global energy markets.
Q3 FY26 Financial Highlights (Standalone)
- Net Profit: ₹4,072.49 crore, up 34.7% YoY from ₹3,022.90 crore
- Revenue from Operations: ₹1,25,169.47 crore (Q3 FY25: ₹1,19,408.17 crore)
- Earnings Per Share (EPS): ₹19.14 (Q3 FY25: ₹14.20)
- Net Worth: ₹55,013.70 crore
- Debt-Equity Ratio: Improved to 0.89
Refining and Marketing Performance
HPCL’s profitability was primarily supported by a strong recovery in refining margins.
- Average GRM (9M FY26): US $6.91 per barrel, up from US $4.73 per barrel last year
- Crude Throughput: 6.38 million metric tonnes (MMT)
- Domestic Sales Volume: 12.68 MMT
Improved product cracks and operational optimization helped offset challenges related to crude quality issues and forex volatility.
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Government LPG Compensation Provides Earnings Support
- HPCL recognised ₹1,320 crore for two months as part of a ₹7,920 crore LPG compensation package from the Ministry of Petroleum and Natural Gas
- Despite this support, the company continues to carry a legacy LPG under-recovery buffer of ₹13,424 crore, subject to future government resolution
Consolidated Financial Performance
- Consolidated Net Profit (Q3 FY26): ₹4,011.40 crore
- Consolidated Net Worth: ₹59,881.70 crore
- Consolidated Debt-Equity Ratio: 0.87
- Interest Service Coverage Ratio: 8.23 times
The consolidated results include contributions from subsidiaries and joint ventures, including Mangalore Refinery and Petrochemicals Limited (MRPL).
Revenue Composition (Q3 FY26)
- Sale of Petroleum Products: ₹1,23,953.30 crore
- Other Operating Revenue: ₹529.93 crore
- Other Income: ₹686.24 crore
Governance, Audit and Board Approval
- Results reviewed by the Audit Committee
- Approved by the Board of Directors on January 21, 2026
- Statutory Auditors’ Report: Unmodified
Key Strengths and Risks
Positives
- Strong recovery in refining margins
- Improved capital structure and reduced leverage
- Formal LPG compensation mechanism improves revenue visibility
Risks
- High dependence on volatile global refining margins
- Foreign exchange losses of ₹1,041.55 crore in 9M FY26
- Operational risks highlighted by the B-80 crude contamination incident
- Limited diversification beyond downstream petroleum operations
Outlook
HPCL’s Q3 FY26 results highlight the company’s ability to benefit from favorable refining cycles while strengthening its financial position. However, long-term sustainability will depend on managing margin volatility, resolving LPG under-recovery liabilities, and successfully executing its energy transition and green energy initiatives.
About HPCL
Hindustan Petroleum Corporation Limited (HPCL) is a leading Indian oil refining and marketing public sector undertaking with major refineries, a vast nationwide fuel retail network, and a growing presence in energy infrastructure. HPCL plays a key role in India’s energy security while gradually expanding into cleaner and sustainable energy solutions.
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