Earnings Review
Higher refining margin lifts HPCL Q3 numbers; PAT below view
This story was originally published at 19:25 IST on 21 January 2026
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--HPCL Oct-Dec net profit INR 40.72 bln--Analysts saw HPCL Oct-Dec net profit at INR 44.40 bln
--HPCL Oct-Dec revenue INR 1.24 tln
--Analysts saw HPCL Oct-Dec revenue at INR 1.05 tln
--HPCL Oct-Dec net profit INR 40.72 bln vs INR 30.23 bln year ago
--HPCL Oct-Dec revenue INR 1.24 tln vs INR 1.19 tln year ago
--HPCL Apr-Dec average GRM $6.91/bbl vs $4.73/bbl year ago
--HPCL Oct-Dec crude throughput 6.38 mln tn vs 6.47 mln tn year ago
--HPCL Oct-Dec pipeline throughput 6.24 mln tn vs 6.93 mln tn year ago
--HPCL Oct-Dec domestic market sales 12.68 mln tn vs 12.32 mln tn year ago
--HPCL Apr-Dec net profit INR 122.73 bln vs INR 40.10 bln year ago
--HPCL Apr-Dec revenue INR 3.55 tln vs INR 3.48 tln year ago
--HPCL Oct-Dec GRM $8.85/bbl vs $6.01/bbl year ago
By Ashutosh Pati
MUMBAI – Hindustan Petroleum Corp. Ltd. posted robust numbers for the December quarter with a sharp rise in both the bottom and top lines, mainly because of higher refining margins following a sharp drop in crude oil prices. However, the oil-marketing company's bottom line missed the Street's expectations even as its revenue topped the view.
HPCL reported a net profit of INR 40.72 billion for the December quarter, up around 35% on year and over 6% on quarter, but below analysts' expectations of INR 44.40 billion. It reported a revenue of INR 1.24 trillion for the quarter, including excise duty of INR 94.29 billion. Its revenue was up around 5% on year and around 13% sequentially. Analysts had expected the company to post a revenue of INR 1.05 trillion.
The company's revenue excluding excise duty for the December quarter was INR 1.15 trillion, up over 4% on year and over 14% from the trailing quarter. Its gross refining margin rose over 47% on year to $8.85 per barrel in the December quarter from $6.01 per barrel a year ago. HPCL's gross refining margin in the nine months ending Dec. 31 rose to $6.91 per barrel from $4.73 per barrel a year ago.
The state-owned company's total expenses, including excise duty, rose around 4% on year to INR 1.2 trillion during the reporting quarter. The cost of materials consumed rose marginally to INR 354.38 billion while other expenses rose over 2% to INR 53.48 billion. Expenses in purchase of stock-in-trade rose over 11% on year to INR 652.67 billion in the reporting quarter.
Its crude oil refinery throughput fell slightly to 6.38 million tonnes in the December quarter from 6.47 million tonnes a year ago. The pipeline throughput fell to 6.24 million tonnes from 6.93 million tonnes a year ago. The company's sales in the domestic market rose to 12.68 million tonnes during the quarter from 12.32 million tonnes a year ago.
HPCL's Visakh Refinery in Visakhapatnam, Andhra Pradesh, recorded crude throughput of 4.01 million tonnes and operated at 106% of its nameplate capacity. The company's Mumbai Refinery recorded crude throughput of 2.37 million tonnes and operated at 99% of its nameplate capacity. It processed two new grades of crude oil in the December quarter, taking the total number of new grades processed in the financial year 2025-26 (Apr-Mar) to seven, it said in a release.
HPCL's net profit for the nine months ended Dec. 31 more than tripled even as its revenue for the period rose slightly. Its net profit for Apr-Dec was INR 122.73 billion, up 206% on year. The revenue was INR 3.55 trillion, up 2%.
HPCL commissioned a residue upgradation facility at the Visakh Refinery during the December quarter. This unit enhances the refinery's ability to process heavier and opportunity crudes and maximises recovery of high-value products from crude oil with minimal residue generation.
The company incurred capital expenditure of INR 49.76 billion in the quarter and INR 110.94 billion in Apr-Dec, with a focus on strengthening its refining and marketing infrastructure, including investments in subsidiaries and joint ventures to build additional capacities and new business lines and improve operating efficiencies, it said.
The company commissioned 321 new retail outlets during the December quarter, taking its total to 24,572. It added five liquefied petroleum gas distributors during the quarter, taking its total to 6,389. The company declared its December quarter results after market hours Wednesday. Shares of HPCL closed 2.2% lower at INR 429.05. End
US$1 = INR 91.69
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Rajeev Pai
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