HPCL posts net loss of ₹12,265 Cr as West Asia conflict impacts margins

State-run Hindustan Petroleum Corporation (HPCL) on Wednesday reported a consolidated net loss of around ₹12,265 crore in Q1 FY27 as the West Asia conflict pushed up crude oil prices while PSU OMCs sold petrol, diesel and LPG at below market cost impacting margins.

In the year-ago period, HPCL had reported a consolidated net profit of roughly ₹4,111 crore. During Q4 FY26, its profits stood at around ₹6,065 crore.

The PSU oil marketing company’s (OMC’s) consolidated total income was higher at around ₹1.46 lakh crore in Q1 FY27, compared to ₹1.24 lakh crore in Q4 FY26 and ₹1.21 lakh crore in Q1 FY26.

Its consolidated total expenses were also higher during the June quarter this financial year at ₹1.64 lakh crore against ₹1.18 lakh crore in Q4 FY26 and ₹1.15 lakh crore in Q1 FY26.

HPCL in its standalone results filing on BSE said that the average Gross Refining Margin (GRM) during Q1 FY27 was $23.80 per barrel as against $3.08 per barrel during the corresponding previous period.

“This is before factoring-in the impact of Special Additional Excise Duty and Road & Infrastructure Cess on export of select petroleum products. Further, during the current period, due to the suppressed marketing margins on certain petroleum products, the profitability is impacted,” it added.

The OMC’s under recoveries on liquefied petroleum gas (LPG) as on June 30, 2026 was around ₹16,405.92 crore, against ₹12,798.67 crore as of March 31, 2026 and ₹13,042.56 crore on June 30, 2025.

The company refined product sales sold 13.12 million tonnes (mt) during the June quarter, up marginally by 0.6 per cent from last year. Refinery throughout stood at 6.52 mt, at a capacity utilization of 107 per cent.

The company said that scheduled commercial operations of the refinery, operated by Hindustan Rajasthan Refinery (HRRL), which is a joint venture with Rajasthan Government, was declared on June 22, 2026 and was dedicated to the nation by the Prime Minister on July 6.

However, HPCL did not inform about the outcome of the inquiries into the fire at the refinery on April 20, 2026, a day before it was scheduled to be inaugurated by the Prime Minister.

HPCL’s Auditor in its report said “The Company does not have the required number of independent directors on its Board, as stipulated under SEBI Listing Regulations 2015, for the period from April 01 , 2026 to June 30, 2026 and up-to the date of this report.”