Hindustan Petroleum Corporation (HINDPETRO) Q1 26/27 earnings summary

Executive summary

• The quarter was marked by extreme volatility in crude prices, operational challenges, and supply chain pressures, but throughput was maintained and new initiatives launched.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, with auditor review confirming compliance with accounting standards and SEBI regulations.

• Rajasthan refinery (HRRL) commenced commercial operations, ramping up to 60% utilization, with full capacity expected in Q3 and petchem by year-end.

• Over 100 years of operations with Maharatna status and a strong pan-India presence in oil & gas, refining, and marketing.

• Second largest product pipeline network and LPG marketer in India, with significant R&D and export activities.

Financial highlights

• Q1 FY27 standalone total income was ₹1,46,407.30 crore, up from ₹1,24,538.40 crore in Q4 FY26; standalone net loss was ₹11,526.41 crore.

• Q1 FY27 consolidated net loss was ₹12,264.67 crore, compared to net profit of ₹6,065.26 crore in Q4 FY26.

• Average Gross Refining Margin (GRM) for Q1 FY27 was $23.80/bbl, but profitability was impacted by suppressed marketing margins.

• Significant under-recoveries: INR 26,000+ crore for the quarter, with INR 20,000 crore on petrol and diesel, and the rest on LPG.

• LPG loss averaged INR 510 per cylinder for the quarter, with June at INR 680 and July at INR 490.

Outlook and guidance

• Management is confident about a turnaround, expecting improved performance as new assets stabilize and supply chain optimizations take effect.

• Compensation of ₹7,920 crore for LPG under-recoveries to be disbursed in 12 monthly instalments, with ₹1,980 crore recognized for Q1 FY27.

• Cumulative negative buffer (unrecognized) for LPG as of June 30, 2026, stands at ₹16,405.92 crore.

• CapEx for FY 2027 is targeted at INR 9,700 crore but may be lower depending on market conditions.

• Committed to achieving net zero Scope 1 & 2 emissions by 2040 with a ₹60,000 Cr investment.