HPCL shares in focus as Q1 net profit slips 6% YoY, revenue rises 26%. Should you buy?

ETMarkets.com

HPCL shares have declined 32% in 2026 so far as soaring oil prices amid supply disruptions due to the conflict in the Middle East spooked investors.

Revenue from operations rose a little over 26% YoY to Rs 1.39 lakh crore in Q2 FY27, compared with Rs 1.10 lakh crore in Q2 FY26. HPCL's gross refining margin (GRM) before export cess rose to $32.15 per barrel in Q2 FY27, compared with $8.80 per barrel in Q2 FY26. Its refineries processed 6.20 million metric tonnes (MMT) of crude oil during Q2FY27, operating at 100% of their combined capacity.

HPCL's total sales volume, including exports, increased 5.5% YoY to 12.73 MMT during the quarter under review. Domestic sales grew 4.9% during the quarter. Combined sales of petrol (motor spirit) and diesel (high-speed diesel) rose 10% YoY to 7.78 MMT, while total LPG sales stood at 2.03 MMT. Pipeline throughput during the quarter was 6.99 MMT.

Also read | HPCL Q2 Results: Profit slips 6% YoY to Rs 3,625 crore, revenue jumps 26%

HPCL incurred capital expenditure of Rs 2,085 crore in Q2FY27, taking cumulative capex for H1FY27 to Rs 3,819 crore. The investments were directed towards strengthening refining and marketing infrastructure and improving operational efficiency.

During the quarter, HPCL mechanically completed the 201-km LPG pipeline from Haldia to Panagarh in West Bengal. The pipeline is currently in the pre-commissioning stage.

Motilal Oswal on HPCL share price

Motilal Oswal Financial Services said the company’s standalone EBITDA stood above its estimate due to lower-than-estimated marketing losses. Reported GRM stood 8% below its estimate at $32.2 per barrel, while refining throughput and marketing volumes were in line.

The domestic brokerage has a ‘Buy’ call on the shares of HPCL.

HPCL share price

HPCL shares have declined 32% in 2026 so far as soaring oil prices amid supply disruptions due to the conflict in the Middle East spooked investors. The stock has fallen 23% in one year, 5% in a month and 1.5% in a week.

In the longer term, the shares have delivered multibagger returns of 105% in three years, and jumped 56% in five years. The company currently has a market capitalisation of more than Rs 72,516 crore.

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