HPCL Q4 FY26 profit jumps 78%: key numbers, dividend

What HPCL reported for the March 2026 quarter

Hindustan Petroleum Corporation Ltd (HPCL) reported a sharp rise in profit for the March 2026 quarter (Q4 FY26), helped by stronger refining margins and a better marketing outcome. The state-run oil marketing company posted consolidated net profit of ₹6,065.26 crore, up 77.58% year-on-year from ₹3,415.44 crore. Revenue from operations for the quarter was reported at ₹1,23,000 crore, compared with about ₹1,18,000 crore to ₹1,19,055.05 crore in the year-ago period, depending on the disclosure format cited. Management also flagged that March saw volatility, but the stronger performance in January and February supported full-quarter numbers. The results were announced around May 13, 2026, alongside commentary in the earnings call and exchange filings.

Standalone profit: ₹4,901.50 crore, up 46%

On a standalone basis, HPCL reported Q4 FY26 net profit of ₹4,901.50 crore, a 46% increase from ₹3,354.98 crore in Q4 of the previous financial year. The earnings call also referenced a standalone profit figure of about ₹4,901 crore for the quarter and described it as a sizable number despite disruptions in March. One report noted that HPCL faced losses in March from selling petrol, diesel and LPG below cost, yet still posted a record quarterly profit. The gap between standalone and consolidated profit reflects performance at the group level, including subsidiaries and joint ventures.

FY26 was a record year for profit

For the full year FY26, HPCL reported consolidated net profit of ₹18,046.89 crore, up 168% from ₹6,735.70 crore in FY25. The company also reported a standalone net profit of ₹17,175.23 crore for FY26, compared with ₹7,271.32 crore in the previous year, described as more than double. On the earnings call, management said the standalone full-year profit of ₹17,175 crore was 17% higher than HPCL’s previous best of around ₹14,650 crore (approximate figure cited on the call). Consolidated full-year profit of ₹18,047 crore was also reiterated in management commentary.

Refining margins improved sharply in Q4

A key operational driver was the rise in gross refining margin (GRM). HPCL’s GRM for Q4 FY26 was reported at $14.27 per barrel, up from $1.44 per barrel in Q4 FY25. For the full year, the average GRM was reported at $1.79 per barrel compared with $1.74 in FY25. Reports also linked the Q4 improvement to subdued crude prices of around $10 per barrel during the period. However, one brokerage note said the Q4 GRM was below its estimate, even as overall performance beat expectations due to inventory gains in the marketing segment.

Throughput and volumes: mixed quarter, strong full-year

Operational data in the disclosures showed a dip in crude throughput for the quarter, even as full-year throughput hit a record. Crude throughput in Q4 FY26 was 6.43 million tonnes versus 6.74 million tonnes in Q4 FY25. For FY26, HPCL’s refineries recorded their highest-ever crude throughput of 26.04 million tonnes, up 3% from 25.27 million tonnes in FY25. Management commentary also said both refineries together produced more than 26 million tonnes, describing it as the highest ever and about 3% higher year-on-year. On marketing, management referenced sales of “51 point something” with 3.3% growth, and said the company focused on profitable segments rather than chasing volume.

LPG under-recoveries, losses and government compensation

LPG continued to be a drag, based on the numbers cited. A brokerage note said LPG losses widened to ₹13.5 billion (₹1,350 crore) in the quarter. An exchange filing cited under-recovery on the sale of LPG cylinders at ₹12,798.67 crore as of March 31. Management also stated that full-year LPG under-recovery was around ₹5,200 crore, and Q4 under-recovery was around ₹1,350 crore. In FY26, HPCL received five equal instalments from the government as compensation for LPG under-recovery, aggregating to ₹3,300 crore.

Deleveraging, efficiency and Project Samriddhi benefits

HPCL’s balance-sheet metrics improved alongside profit. A brokerage note put net debt at ₹475 billion (₹47,500 crore) as of March 31, 2026, down from ₹632 billion (₹63,200 crore) a year earlier. In the earnings call, management cited standalone total debt declining from ₹63,323 crore on March 31, 2025 to ₹47,599 crore on March 31, 2026. It also said the debt-to-equity ratio fell from as high as 1.63 at the end of H1 FY25 to about 1.38 at FY25 end, and then to 0.8 after FY26 performance. Project Samriddhi 1.0 was cited as contributing ₹1,690 crore to benefits (also stated as ₹1,691 crore on the call), including ₹740 crore to ₹744 crore recurring and ₹947 crore one-time benefits.

Dividend and capex announced alongside results

HPCL’s board declared a dividend of ₹19 per share for FY26, described as the highest dividend paid in the last five years. Separately, another report said the board recommended a final dividend of ₹19.25 per equity share for FY26, subject to shareholders’ approval. Capital expenditure was reported at ₹4,611 crore for the quarter, with cumulative FY26 capex at ₹15,705 crore. The company said spending was directed towards strengthening refining and marketing infrastructure, including investments in subsidiaries and joint ventures, and building additional capacities and new business lines.

Stock reaction: down over 4% despite profit beat

HPCL shares fell after the results, even as profit was ahead of the year-ago quarter. The stock declined over 4% to an intraday low of ₹373.9 on the NSE. Around 10:30 AM, it was quoted at ₹375.25, down 3.8% from the prior close of ₹390.10. The stock’s reported 52-week high was ₹508.45 (January 5, 2026) and the 52-week low was ₹316.20 (March 23, 2026). The move highlighted that near-term price action can diverge from earnings growth, especially when market participants reassess refining margin sustainability, inventory effects, and fuel price dynamics.

Key numbers at a glance

Why these results matter for investors tracking OMCs

HPCL’s FY26 numbers show how profitability in OMCs can swing sharply with refining margins, inventory effects, and policy-linked products such as domestic LPG. The quarter also underlined the importance of segment mix: management cited momentum in January and February, and brokerages pointed to inventory gains and marketing margin support. At the same time, disclosures on LPG under-recoveries and compensation flows show how cash flows can depend on government support mechanisms. The company’s debt reduction and lower debt-to-equity ratio were another notable takeaway, given the capex needs of refining and fuel retail infrastructure.

Conclusion

HPCL closed FY26 with record profits on both standalone and consolidated bases, supported by higher GRMs and operational execution, while also reporting LPG under-recoveries and a meaningful capex plan. Investors will track shareholder approval for the final dividend recommendation and further updates on margins, throughput, and compensation-related receivables in upcoming filings and management commentary.