Hindustan Petroleum Corporation (HINDPETRO) Q2 26/27 earnings summary

Executive summary

• Q2 returned to profit after steep Q1 losses, supported by strong refining and sales, improved marketing margins, and cost, working-capital and CapEx controls.

• H1 recorded a consolidated net loss of ₹8,639.45 crore; elevated crude prices, disrupted shipping, freight costs and LPG under-recoveries weighed on performance.

• Growth priorities include capacity expansion, petrochemicals, digital transformation and green energy, alongside Rajasthan refinery ramp-up.

Financial highlights

• Q2 EBITDA was INR 9,822 crore versus a Q1 loss of INR 14,816 crore; management cited a quarter-on-quarter swing of INR 24,681 crore.

• Q2 consolidated net profit was ₹3,625.22 crore versus ₹3,859.30 crore YoY; H1 consolidated net loss was ₹8,639.45 crore versus net profit of ₹7,970.23 crore in H1 FY26.

• Q2 standalone net profit was ₹3,482.62 crore; H1 standalone net loss was ₹8,043.79 crore, compared with net profit of ₹8,201.24 crore in H1 FY26.

• H1 revenue from operations was ₹2,84,267 crore; consolidated total income was ₹2,85,419.41 crore and sale of products was ₹2,83,176.70 crore.

• Q2 refinery GRM was $32.15/bbl pre-SAED; H1 average GRM was $27.89/bbl, gross of export cess.

Outlook and guidance

• Rajasthan refinery was at 55%-60% utilization; full operations were expected by end-Q3 and an 8-9 MMTPA run rate around December, subject to commissioning and stabilization.

• Rajasthan GRM was $12/bbl in Q2; October was $16.1/bbl post-SAED for the first 18 days, with management expecting $20+/bbl after high-sulfur crude starts.

• Refining capacity is targeted to rise from 35.8 MMTPA in FY26 to 46.0 MMTPA in FY28, including HRRL’s 9.0 MMTPA refinery-petrochemical complex.

• Rajasthan cracker startup is expected in Q4, with most petrochemical benefits expected next financial year; Vizag RUF full benefits are targeted around March, potentially slipping into April.

• Net-zero Scope 1 and 2 emissions target is 2040, backed by planned ₹60,000 crore investment; Samriddhi initiatives are expected to meet prior guidance.