Hindustan Petroleum Corporation Limited (HPCL) announced an exceptional financial and operational performance for the quarter and half-year ended September 30, 2025, driven by robust refining and marketing growth, improved margins, and strategic investments.
Financial Highlights: Profits and Margins Soar
HPCL’s performance in H1 FY26 marks a significant turnaround, underscored by a 731% year-on-year increase in standalone Profit After Tax (PAT), which surged to ₹8,201 crore from ₹987 crore in H1 FY25. The company also achieved a 507% jump in PAT for Q2 FY26, reaching ₹3,830 crore compared to ₹631 crore in Q2 FY25.
Revenue from Operations remained stable, touching ₹230,458 crore in H1 FY26 versus ₹229,074 crore in the previous year, while Q2 FY26 revenues stood at ₹110,323 crore, reflecting a marginal increase from ₹108,196 crore in Q2 FY25.
The company’s Gross Refining Margin (GRM) saw a notable improvement:
*H1 FY26: US$ 5.95 per barrel (up from US$ 4.03 per barrel in H1 FY25)
*Q2 FY26: US$ 8.80 per barrel (up from US$ 3.12 per barrel in Q2 FY25)
* On a consolidated basis, HPCL posted a PAT of ₹7,970 crore for H1 FY26, compared to ₹777 crore in H1 FY25.
Another major achievement was the company’s progress in deleveraging — reducing its standalone debt-equity ratio to 1.07 as of September 30, 2025, from 1.38 as of March 31, 2025.
Refining Operations: Record Throughput and Capacity Utilization
HPCL’s refineries delivered their highest-ever crude throughput of 13.23 MMT during H1 FY26, up 9.7% year-on-year. Visakh Refinery recorded 8.14 MMT, operating at 108% of its enhanced capacity (15 MMTPA). Mumbai Refinery achieved 5.09 MMT, operating at 107% of its nameplate capacity (9.50 MMTPA). In Q2 FY26, throughput reached 6.57 MMT, reflecting a 4.3% increase from the same period last year. HPCL also processed five new grades of crude oil during H1 FY26, enhancing flexibility and efficiency in refining operations.
Marketing and Sales: Steady Growth Across Segments
HPCL maintained its growth trajectory in marketing, with total sales (including exports) rising 3.5% to 25.11 MMT in H1 FY26.
Key highlights include:
*Petrol and Diesel sales: 15.18 MMT (↑1.9%)
*LPG (domestic and non-domestic): 4.60 MMT (↑6.2%)
*Pipeline throughput: 12.82 MMT
In Q2 FY26, HPCL’s sales reached 12.07 MMT, marking a 3.9% year-on-year increase. The company also recorded a 6.1% growth in aviation fuel sales, outperforming an industry-wide decline of 2%.
Strategic Investments and Infrastructure Expansion
HPCL continued to strengthen its infrastructure with a capital expenditure of ₹6,117 crore in H1 FY26, focusing on refining, marketing, and new business lines.
Key project milestones include:
*Commissioning of India’s largest LPG cavern at Mangalore (80 TMT capacity).
*Commissioning of Barmer-Palanpur Pipeline (BPPL) for transporting sour HSD to the Barmer refinery.
*Completion and commissioning of the Bhatinda-Sangrur Product Pipeline, part of the HMEL network.
*HP Aviation’s Solapur ASF commissioned under the UDAN initiative, raising the total count to 58 facilities.
HPCL Rajasthan Refinery Limited (HRRL): Nearing Completion
The HPCL Rajasthan Refinery achieved 89% overall physical progress, with the refinery section over 95% complete. Three major process units — Diesel Hydrotreating (DHDT), Hydrogen Generation (HGU), and Crude/Vacuum Distillation — are under pre-commissioning. Key facilities such as the Raw Water Treatment Plant, Cooling Towers, Effluent Treatment Plant, and Township Infrastructure have been commissioned. Crude oil inflow to the CDU is expected within the current calendar year.
Residue Upgradation Facility (RUF), Visakh: Advanced Pre-Commissioning Stage
The Residue Upgradation Facility at Visakh Refinery has reached an advanced stage of pre-commissioning:
*Hydrogen and flare headers have been commissioned.
*Catalyst loading is in progress after successful integrity testing under high pressure and temperature.
Network Expansion and Customer Outreach
HPCL continued to expand its retail footprint and distribution network:
*351 new retail outlets commissioned (total: 24,252)
*Three new LPG distributors added (total: 6,387)
*City Gas Distribution (CGD): 563 inch-km of steel and 116 km of MDPE pipelines laid
*8,950 new domestic PNG connections added, taking the total to 1,33,410
Innovation and R&D: Advancing Technology and Sustainability
Under its Project Samriddhi (EBITDA improvement program), HPCL achieved ₹823 crore in accruals (US$ 0.52/bbl) during H1 FY26.
The company also signed several key collaborations:
*A Joint Development and Cooperation Agreement (JDCA) with Lummus Technology, USA for commercializing HP-NTO technology.
*An MoU with the National Centre for Polar & Ocean Research (NCPOR), Goa, to promote joint research on decarbonization, sustainable aviation fuels (SAF), and compressed biogas (CBG) for Antarctic operations.
*As of September 30, 2025, HPCL Green R&D Centre (HPGRDC) has filed 684 patents, with 272 already granted — reaffirming its innovation-driven growth.
Sustainability and Energy Transition Initiatives
HPCL advanced its sustainability agenda through focused initiatives:
*Compressed Biogas (CBG): Commissioned one new plant under SATAT (total: 17); issued 9 new LOIs (total: 136) with a capacity of 332 TMT.
*Renewables: Commissioned a 1.5 MWp floating solar project at Visakh.
*Retail Energy Transition: Added 42 new CNG outlets (total: 2,113) and 304 solarized retail outlets (total: 22,747) — with 94% of HPCL’s outlets now powered by renewable energy.
Awards and Recognitions
HPCL’s excellence across governance, innovation, and employee engagement was recognized through several prestigious awards:
*SCOPE Eminence Award 2022–23 for Corporate Governance
*ET Brand Equity Martech+ Award for the HP Pay “Fuel Fest” campaign
*ETHR World Employee Experience Award 2025 in the PSU category
Looking Ahead
As per the press release, HPCL’s strong half-yearly performance reflects its strategic agility, operational excellence, and commitment to sustainable growth. With continued progress in refinery modernization, renewable energy, and digital innovation, the company is well-positioned to drive India’s energy transition in the years ahead.
