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

Shares of Hindustan Petroleum Corporation (HPCL) will remain in focus on Friday after the state-owned oil marketing company reported a consolidated net profit of Rs 3,625 crore for the second quarter of FY27, down more than 6% year-on-year (YoY) from Rs 3,859 crore in the corresponding quarter of the previous financial year. Sequentially, it recovered from a net loss of Rs 12,264.67 crore in the preceding quarter (Q1 FY27).

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. The investments were directed towards strengthening refining and marketing infrastructure and improving operational efficiency.Live EventsDuring 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 priceMotilal 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 priceHPCL 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. Why Jefferies raised Eternal’s target price after Q2 earningsDisclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser.

Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution.

They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.(You can now subscribe to our ETMarkets WhatsApp channel)