Hindustan Petroleum Corporation (HINDPETRO) Q1 25/26 earnings summary

Executive summary

• Achieved strong quarterly and annual performance with refining throughput at 6.66 million metric tons in Q1 FY26, up 15.6% year-over-year, and record annual throughput of 25.3 MMT in FY 2024-25, supported by capacity expansion at Vizag refinery.

• Standalone net profit for Q1 FY26 was ₹4,370.87 crore, up from ₹355.80 crore year-over-year, and FY 2024-25 profit after tax was ₹7,365 crore.

• EBITDA reached ₹8,124 crore in Q1 FY26 and ₹16,772 crore for FY 2024-25, with significant year-over-year growth.

• Operational efficiency programs and digital transformation initiatives are underway, targeting annual savings and improved retail throughput.

• Holds Maharatna status, operates India's largest lube refinery, and has a strong presence in refining, marketing, natural gas, renewables, and R&D.

Financial highlights

• Standalone EBITDA for Q1 FY26 was ₹7,374.02 crore; profit after tax was ₹4,371 crore, with EPS at ₹20.54, up from ₹1.67 year-over-year.

• FY 2024-25 revenue from operations reached ₹4,66,346 crore, with highest-ever refinery and pipeline throughput.

• Core GRM (excluding inventory losses) was $6.54/bbl in Q1 FY26, while average GRM was $3.08/bbl, down from $5.03/bbl year-over-year.

• Inventory losses in Q1 FY26 were ₹1,400 crore in refining and ₹600 crore in marketing.

• Debt-to-equity ratio improved to 1.01 standalone and 0.98 consolidated in Q1 FY26; total debt-equity ratio was 0.70 for FY 2024-25.

Outlook and guidance

• Refining capacity to increase from 35.8 MMTPA in 2024-25 to 45.3 MMTPA by 2027-28, with phased commissioning of Barmer refinery and Vizag bottom upgradation project.

• Market sales projected to grow at a CAGR of 4-6% through FY 2028.

• Major investments in renewables, biofuels, and net zero initiatives, with 36% of capex allocated and ₹60,000 crore investment plan targeting net zero Scope 1 & 2 emissions by 2040.

• Chhara Terminal capacity utilization targeted at 10-15% for FY26, rising to 35-40% in FY27.

• Management remains focused on deleveraging and expects further debt reduction, especially if LPG compensation is received.