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Hindustan Petroleum Corporation Ltd

| Quarterly Financial Results Q3 FY 2025–26

BULLISH SENTIMENT

Report Source

⬤21st Jan 26

Summary : Hindustan Petroleum reported strong Q3 FY26 results with increased revenue and profit, driven by improved GRM and government compensation, despite some operational challenges.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Standalone Q3 FY26 Total Expenses: ₹1,19,756.79 Crore
  2. Consolidated Q3 FY26 Total Expenses: ₹1,19,993.14 Crore
  3. Standalone Nine Months FY26 Total Expenses: ₹3,40,338.19 Crore
  4. Consolidated Nine Months FY26 Total Expenses: ₹3,41,016.76 Crore
  5. Standalone Q3 FY26 Total Income: ₹1,25,169.47 Crore
  6. Consolidated Q3 FY26 Total Income: ₹1,25,189.15 Crore
  7. Standalone Nine Months FY26 Total Income: ₹3,56,695.61 Crore
  8. Consolidated Nine Months FY26 Total Income: ₹3,56,808.79 Crore
  9. Standalone Net Worth (31.12.2025): ₹55,013.70 Crore
  10. Consolidated Net Worth (31.12.2025): ₹59,881.70 Crore
  11. Standalone Outstanding Debt (31.12.2025): ₹48,712.73 Crore
  12. Consolidated Outstanding Debt (31.12.2025): ₹51,828.21 Crore
  13. Standalone Total debts to total assets (31.12.2025): 0.25 times
  14. Consolidated Total debts to total assets (31.12.2025): 0.26 times
  15. Both standalone and consolidated unaudited financial results are presented.

Corporate Overview

  1. Negative buffer of ₹13,424.11 Crore for LPG cylinders as of Dec 31, 2025
  2. Crude oil quality issues from B-80 Mumbai Offshore oilfield leading to unit upsets and sub-optimal yield
  3. Reliance on MoPNG for LPG under-recovery compensation
  4. Sourcing crude oil from Hindustan Oil Exploration Company Limited (HOECL)
  5. Downstream Petroleum
  6. Others
  7. Crude Thruput: 6.38 MMT (Q3 FY26 Standalone)
  8. Pipeline Thruput: 6.24 MMT (Q3 FY26 Standalone)

Risk Factors

  1. Significant negative LPG buffer balance.
  2. Crude oil quality issues impacted operations.
  3. Reliance on government for subsidy compensation.
  4. Unreviewed financial data from joint ventures.

Key Drivers

  1. Gross Refining Margin significantly improved.
  2. Government compensation for LPG under-recoveries.
  3. Strong revenue and profit growth.
  4. Positive financial performance for the period.

Auditor’s Report

  1. Unmodified conclusion on the limited review of standalone and consolidated unaudited financial results

Board Commentary

  1. Negative buffer for LPG cylinders
  2. Crude oil quality issues
  3. Compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Corporate Governance

  1. Audit Committee reviewed and recommended financial results

Management Discussion & Analysis

Performance Drivers

  1. Average Gross Refining Margin (GRM) increased to US $6.91 per BBL (April-Dec 2025) from US $4.73 per BBL (previous period)
  2. Compensation of ₹7,920 Crore from MoPNG for domestic LPG under-recoveries

Risk Control Measures

  1. MoPNG compensation for LPG under-recoveries recognized in instalments
  2. Impact of crude quality issues provisionally assessed and accounted for by management

Critical Risks

  1. Unrecognized negative buffer for LPG cylinders due to market determined price being less than effective cost
  2. Operational disruptions and sub-optimal yields due to high salt and chloride content in crude oil