Hindustan Petroleum (HPCL) on Thursday reported a staggering 548.4% year-on-year rise in its consolidated net profit for the first quarter of FY26, at Rs 4,110.93 crore, compared to Rs 633.94 crore in the same period last fiscal.
Sequentially, net profit rose 20% from Rs 3,415.44 crore recorded in the fourth quarter of FY25.
However, the company’s revenue from product sales declined marginally by 1%, coming in at Rs 1.19 lakh crore. Total income for the quarter stood at Rs 1.20 lakh crore, slightly down from Rs 1.21 lakh crore in Q1 FY25.
The company’s consolidated operating margin increased to 4.87% in the quarter under review from 0.84% in the same period the previous fiscal.
HPCL’s average Gross Refining Margin in June
In the downstream segment, HPCL’s revenue remained largely flat at Rs 1.20 lakh crore, mirroring the same period last year. Total expenses, however, dropped to Rs 1.15 lakh crore in Q1 FY26, down from Rs 1.21 lakh crore in Q1 FY25.
The average Gross Refining Margin (GRM) during the quarter ended June 30 was $3.08 per barrel as against $5.03 per barrel during the corresponding previous year.
HPCL to raise funds through NCD
The Board of Directors of the company has approved a proposal for borrowing through issuance of Secured/Unsecured Non-Convertible Debentures up to Rs 10,000 crores on private placement basis in the domestic market and/or in the overseas market from the date of Board approval.
“It may be noted that the above borrowing of funds is within the overall borrowing powers of the company for which approval of the shareholders was already obtained in· the 70th Annual General Meeting of the Company held on August 30, 2022,” the company said.
Total capex incurred by the company in FY25 was Rs 14,508 crore, focused on strengthening refining and marketing infrastructure, including investments in subsidiaries and joint ventures.
This year too the company is targeting between Rs 12,000-14,000 crore of capex, it has earlier told FE. Up to 2030, the company plans to spend almost Rs 90,000 crore. Of this Rs 90,000 crore, HPCL expects almost 30-35% of the amount to be spent towards clean energy.