Hindustan Petroleum Corporation Limited (HPCL) has announced an impressive 26% increase in its consolidated net profit for the March quarter, driven primarily by enhanced marketing margins. The company reported a profit of ₹3,415.44 crore, a significant rise from ₹2,709.31 crore during the same period last year. This surge in profit reflects HPCL’s resilience and strategic positioning in a competitive market.
Profit Trends and Fiscal Year Overview
In a sequential comparison, HPCL’s net profit soared by 34%. However, when looking at the cumulative data for fiscal year 2025, there was a 58% drop in net profit, totaling ₹6,735.70 crore compared to ₹16,014.61 crore in fiscal year 2024. This fluctuation highlights the challenges the company faced over the year.
- Quarterly Profit: ₹3,415.44 crore
- Previous Year Comparison: ₹2,709.31 crore
- Cumulative Profit FY25: ₹6,735.70 crore (down from ₹16,014.61 crore in FY24)
Revenue Insights
HPCL’s revenue from product sales experienced a slight decline of 2.5%, amounting to ₹1.18 lakh crore. The total income for the quarter was ₹1.19 lakh crore, a decrease from ₹1.22 lakh crore in Q4 FY24. Despite these challenges, the company managed to improve its consolidated operating margins to 3.82%, up from 2.79% during the same quarter last year.
Gross Refining Margin Analysis
The average gross refining margin (GRM) for the year ending March 31 was recorded at $5.74 per barrel, a notable decrease from $9.08 per barrel in the previous year. This decline in GRM reflects broader market pressures but also emphasizes HPCL’s ongoing efforts to optimize operational efficiency.
Dividend and Shareholder Returns
In light of its financial performance, HPCL’s board of directors has proposed a dividend of ₹10.50 per equity share, contingent on approval from the corporation’s members. This decision underscores the company’s commitment to returning value to shareholders.
Record Achievements in Refinery Operations
HPCL achieved a milestone with its highest-ever refinery throughput of 25.27 million tonnes. The Visakh Refinery reached its full capacity, processing over 15 million tonnes of crude oil, while the Mumbai Refinery also set records by refining nearly 10 million tonnes.
- Refinery Throughput: 25.27 million tonnes
- Visakh Refinery: Over 15 million tonnes
- Mumbai Refinery: Almost 10 million tonnes
Sales Volume and Pipeline Performance
The company also marked a record-high sales volume of 49.82 million tonnes, reflecting a robust 5.5% growth in the domestic market. Additionally, HPCL achieved a historic peak in pipeline throughput, registering 26.90 million tonnes during fiscal year 2025.
Future Investments and Strategic Growth
In fiscal year 2025, HPCL invested ₹14,508 crore to bolster its refining and marketing infrastructure, with plans to allocate nearly ₹90,000 crore by 2030. A significant portion of this investment—approximately 30-35%—is earmarked for initiatives in clean energy, highlighting the company’s commitment to sustainable practices and future growth.
By focusing on innovation and strategic investments, HPCL aims to navigate the evolving landscape of the energy sector while ensuring robust returns for its stakeholders.
