HPCL Q2 profit falls around 6% as revenue jumps 26%

Profit dip amid volatile crude prices

HPCL announced a net profit of Rs 3,483 crore in the quarter, a 9% YoY decline according to a press release cited by The Hindu. The same quarter’s consolidated profit was reported as Rs 3,625.22 crore, a 6.1% fall year‑on‑year, by The Economic Times. Both figures reflect the impact of renewed volatility in benchmark crude prices following the West‑Asia conflict.

Revenue jumps 26% year‑on‑year

Revenue from operations surged to Rs 1,39,140 crore, up 26.1% from Rs 1,10,323 crore in Q2FY26, as detailed in the Economic Times report. The jump was driven by higher sales volumes – total sales, including exports, rose 5.5% to 12.73 million metric tonnes (MMT), with domestic sales up 4.9% and combined petrol‑diesel sales up 10%.

Gross refining margin triples

The company’s gross refining margin (GRM) before export cess climbed to $32.15 per barrel, compared with $8.80 per barrel in the same quarter last year. For the first half of FY27, the GRM averaged $27.89 per barrel, up from $5.95 a year earlier – a clear sign of improved refinery economics.

Full‑capacity operations and infrastructure push

HPCL processed 6.20 MMT of crude, operating its refineries at 100% combined capacity utilisation (100.4% in the quarter). The Visakh Refinery ran at 95% capacity, while the Mumbai Refinery exceeded capacity at 109%. Capital expenditure reached Rs 2,085 crore in Q2, bringing H1FY27 capex to Rs 3,819 crore, largely earmarked for refining and marketing upgrades.

Expanding retail and green‑energy footprint

As of 30 September 2026, HPCL managed 25,245 retail outlets and 6,394 LPG distributorships. Its piped natural gas network counted 77,984 connections, while 2,296 CNG stations and 5,880 EV charging points underscored a push toward cleaner fuels. The company also commissioned India’s first refinery‑scale blue‑hydrogen unit at Visakh and solarised 96% of its retail sites.

Market reaction

HPCL shares closed at Rs 340.80 on the NSE, down 1.87% from the previous close. Year‑to‑date, the stock has slipped 31.65%, reflecting broader market sentiment rather than the company’s operational performance.

What it means for India’s energy security

The robust revenue growth and record‑high refining margins illustrate how a state‑owned oil marketer can turn price volatility into profitability. By keeping refineries running at full capacity, expanding retail access and investing in green‑energy projects, HPCL contributes to the nation’s energy stability and its transition to a lower‑carbon future.