HPCL Q3 Results: Net profit up by 6%; misses Street estimates

Hindustan Petroleum Corporation Ltd (HPCL) reported a net profit of ₹4,072.5 crore for the December quarter (Q3 FY26), missing the CNBC-TV18 poll estimate of ₹4,301 crore. Revenue stood at ₹1.15 lakh crore, higher than the poll estimate of ₹1.07 lakh crore.

EBITDA came in at ₹7,019 crore compared to the poll estimate of ₹7,604 crore, while EBITDA margin was at 6.1%, below the estimated 7.2%.

On a sequential basis, HPCL’s net profit rose 6.3% from ₹3,830 crore, while revenue increased 14.2% from ₹1.01

lakh crore. EBITDA rose 1.9% quarter-on-quarter (QoQ) from ₹6,891 crore. However, margins declined to 6.1% from 6.8% in the previous quarter.

Refinery throughput remains strong

During the quarter, HPCL’s refineries recorded crude throughput of 6.38 million metric tonnes (MMT). The Visakh refinery processed 4.01 MMT, operating at 106% of its nameplate capacity, while the Mumbai refinery recorded throughput of 2.37 MMT, operating at 99% of its nameplate capacity.

LPG Buffer, Compensation Update

The Ministry of Petroleum and Natural Gas (MoPNG), through a letter dated April 30, 2020, had informed oil marketing companies that if the market-determined price of LPG cylinders is lower than the effective cost to consumer, the difference would be retained in a buffer account for future adjustment. HPCL reported a negative LPG buffer of ₹13,424.11 crore as of December 31, 2025.

According to the exchange filing, the MoPNG conveyed compensation of ₹7,920 crore to HPCL towards under-recoveries on the sale of domestic LPG up to March 31, 2025, and those likely to be incurred up to March 31, 2026. The compensation is to be disbursed in 12 equal monthly instalments starting November 2025.

As per the filing, HPCL has recognised two equal monthly instalments aggregating to ₹1,320 crore up to the reporting date under ‘Sale of Products’, with the negative LPG buffer reduced to that extent.

Shares of Hindustan Petroleum Corporation Ltd ended lower on Wednesday, January 21, by 1.87% at ₹430.40 on the NSE.