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Hindustan Petroleum Corporation Limited (HPCL) has reported a consolidated net profit of ₹6,065 crore in the fourth quarter of FY 2025-26. Due to improvement in refining margins, the company’s profit has increased by 77% compared to last year.
Declaration of final dividend of ₹19.25 per share
The company’s board of directors has recommended a final dividend of ₹19.25 per share on shares with a face value of ₹10. This dividend will be separate from the interim dividend of ₹5 paid during the year. This is yet to be approved by the members.
Big jump in refining margin
The main reason for the big increase in HPCL’s profits was better refining margins. The company’s gross refining margin (GRM) increased to $ 14.27 per barrel in the fourth quarter of FY 2026, which was $ 8.44 per barrel in the same quarter last year. The average GRM for the entire financial year 2025-26 stood at $8.79 per barrel, compared to $5.74 last year.
Revenue and annual profit figures
Revenue from sales of products increased by 4.4% to ₹1.23 lakh crore in the fourth quarter. The total income of the company also increased by 4.4% to reach ₹1.24 lakh crore.
Talking about the entire financial year 2025-26, the consolidated net profit jumped by 168% to ₹ 18,046.89 crore.
Government compensation for LPG under-recovery
The Petroleum Ministry has said that HPCL will have to pay a compensation of ₹7,920 crore to compensate for the loss (under-recovery) on the sale of domestic LPG.
This amount will be given in 12 equal monthly installments from November 2025. The company has recognized ₹3,300 crore as its five tranches for FY2026.
Crude Processing and Domestic Sales
Four new grades of crude oil were processed at the refineries during the quarter, taking the total number of grades for the full year to 52.
However, crude throughput declined to 6.43 million tonnes in the fourth quarter from 6.74 million tonnes in the same period last year.
Domestic sales improved and increased from 12.11 million tonnes to 12.43 million tonnes.
Spending on infrastructure and expansion
HPCL made capital expenditure or capex of ₹4,611 crore in the fourth quarter. This expenditure for the entire financial year 2026 stood at ₹15,705 crore.
This investment was spent on strengthening refining and marketing infrastructure, launching new business lines and improving operating efficiency.
The company has also opened 526 new retail outlets and 75 new CNG stations in the last quarter.
Hindustan Petroleum shares rose 12% in 1 month
After the quarterly results, Hindustan Petroleum shares are trading at Rs 389 today with a rise of 5.16%. The company’s shares have risen 12% in the last one month and have fallen 22% since January 1 this year. Whereas, there has been a decline of 20% in the last 6 months.
Consolidated profit means performance of the entire group
The results of companies come in two parts – standalone and consolidated. Standalone shows the financial performance of only one unit. Whereas in the consolidated financial report the report of the entire company is given.
What is GRM?
Gross Refining Margin (GRM) is the profit that a refining company earns by processing a barrel of crude oil into products like petrol, diesel. If the margin increases after taking out the cost of refining, the company’s profit also increases.
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