HPCL Swings to a Loss Despite Strong Revenue Growth in Q1
Hindustan Petroleum posted a sharp quarterly loss as a steep drop in net profit margin overwhelmed robust sales growth.
HPCL reported a net loss of ₹12,265 crore for Q1 FY27, a dramatic reversal from profit a year ago, even as revenue grew over 20% year-on-year.
Hindustan Petroleum Corporation (HPCL) reported a sharp swing into the red for the quarter ended June 2026, as a severe contraction in profitability overwhelmed strong top-line growth. The company posted a net loss of ₹12,265 crore, a stark reversal from a profit of ₹4,111 crore in the same quarter last year, despite revenue climbing 20.8% year-on-year to ₹1.45 lakh crore.
The results reveal a significant margin squeeze. The net profit margin collapsed to -8.4%, down from 3.4% a year ago and 4.9% in the previous quarter. This indicates that costs rose much faster than the healthy 17.4% sequential increase in sales. The trailing-twelve-month (TTM) net profit margin stands at a thin 0.3%, highlighting the pressure on earnings over a longer period.
Quarterly Performance at a Glance
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Quarter ended June 2026 | Quarter ended March 2026 | Quarter ended June 2025 |
| Revenue (₹ Cr) | 145,225YoY +21% | 123,693 | 120,193 |
| Profit (₹ Cr) | -12,265YoY -398% | 6,065 | 4,111 |
| Net Profit Margin (%) | -8.4YoY -347% | 4.9 | 3.4 |
Key Points
- The stock has declined 5.3% over the past year, underperforming amid earnings volatility, though it has delivered strong 3-year returns of 112.7%.
- Despite the quarterly loss, the company maintains robust return metrics, with a trailing Return on Equity (ROE) of 30.9%.
- HPCL's valuation remains at a significant discount to the industry, trading at a P/E of 4.0 compared to the sector average of 16.1.
The immediate challenge for HPCL is to stabilize its net profit margin and translate its solid revenue momentum back into the black.
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· HINDPETRO
(BSE)
ISIN: INE094A01015
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