H P C L Q1 FY27 Results (NSE: HINDPETRO)
Signal: Slipped to loss
The read
HPCL reported a consolidated net loss of ₹12,264.67 Cr in Q1FY27, swinging from a profit of ₹4,110.93 Cr YoY, despite 20.8% revenue growth, as gross refining margins surged to $23.80/bbl but marketing margins were suppressed, causing gross margin to turn negative and EBITDA margin to collapse from +6.7% to -10.7%. A one-off LPG compensation of ₹1,980 Cr was recognised, but the cumulative unrecognised buffer of ₹16,406 Cr remains an overhang.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,45,225.11 Cr | 20.8% | 17.4% |
| EBIT | ₹-17,381.13 Cr | -396.9% | |
| Net profit | ₹-12,264.67 Cr | -398.3% | |
| EPS | ₹-57.64 | -398.3% | |
| EBIT margin | -10.7% |
P&L walk
Revenue grew 20.8% YoY but gross margin turned negative (-7.3% vs +11.0%) as raw material costs rose to 104.1% of revenue, driving EBITDA to a loss of ₹15,503.4 Cr and a net loss of ₹12,264.67 Cr.
Key positives
- Gross Refining Margin surged to $23.80/bbl from $3.08/bbl YoY, a 673% increase.
- Revenue grew 20.8% YoY to ₹1,45,225 Cr.
- LPG compensation of ₹1,980 Cr recognised from government (three monthly instalments).
Key concerns
- Marketing margins were suppressed, causing gross margin to turn negative (-7.3%) from +11.0% YoY.
- EBITDA margin swung from +6.7% to -10.7%, leading to a net loss of ₹12,264.67 Cr.
- Raw material cost as % of revenue rose from 81.2% to 104.1%, indicating inability to pass through costs.
- Cumulative unrecognized LPG buffer stands at ₹16,405.92 Cr, a future risk if not compensated.
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