PSU stock jumps after its net profit grows by 2599% YoY

Synopsis: A Large cap company’s shares rose over 2 percent in today’s trading session after announcing Q2 results.

A large cap company that engaged in the business of refining crude oil and marketing of petroleum products, is in the spotlight today after posting Q2FY26 results. Read the article below for detailed insights into its performance.

With a market capitalization of Rs. 7,483.87 crore, the shares of Hindustan Petroleum Corporation Limited were trading at Rs. 115.40, up by 5.77 percent from its previous closing price of Rs. 109.10. In today’s trading session it has touched an intraday high of Rs. 121.45, implying an upside of 11.32 percent from previous close price.

Q2FY26 Results & Dividend Announcement

Hindustan Petroleum Corporation Limited reported Rs. 1,00,856 crore in revenue for the second quarter of FY26, a 0.9 percent increase over the Rs. 99,957 crore for the same period in FY25. It decreased by 9 percent as compared to Rs. 1,10,825 crore in Q1 FY26.

The company’s EBITDA for Q2 FY26 stood at Rs. 6,852 crore, down by 8.2 percent from Rs. 7,461 crore in Q1 FY26, but rose by 198.5 percent from Rs. 2,296 crore in Q2 FY25.

The consolidated net profit for the second quarter of FY26 was Rs. 3,859 crore, which was 6.1 percent lower than the Rs. 4,111 crore reported in the previous quarter and increased by 2,599 percent from Rs. 143 crore in Q2 FY25. Profit growth was also reflected in earnings per share (EPS), which increased to approximately Rs. 18.14 in Q2 FY26 from Rs. 0.67 in Q2 FY25. 

For the second quarter of FY26, Hindustan Petroleum Corporation Limited has declared an interim dividend of Rs. 5 per equity share, which is 50 percent of face value of Rs. 10. Shareholders who hold shares on the record date, which has been set as November 6, 2025, are eligible for the dividend. The dividend will be paid out on or before November 27, 2025, in accordance with the company’s filing with the stock exchanges. 

Operational Highlights

Refining Performance

During Q2 FY26, HPCL’s refineries achieved a total crude throughput of 6.57 MMT, marking a 4.3 percent year-on-year increase from 6.30 MMT in Q2 FY25. The Visakh Refinery processed 3.98 MMT operating at 105 percent capacity, while the Mumbai Refinery processed 2.59 MMT at 108 percent capacity. Additionally, one new grade of crude oil was processed during the quarter, taking the total number of new grades processed in H1 FY26 to five.

Marketing and Sales Performance

Total sales volume, including exports, stood at 12.07 MMT, up 3.9 percent YoY. Domestic sales grew 3.6 percent, driven by a 2.8 percent rise in combined petrol and diesel sales to 7.07 MMT, and a 5.9 percent increase in total LPG sales to 2.39 MMT. Pipeline throughput for the quarter was 6.12 MMT, and HPCL’s aviation business grew 6.1 percent, outperforming the industry’s 2 percent degrowth.

Strategic Investments and Infrastructure

Capital expenditure during Q2 FY26 amounted to Rs. 3,257 crore, directed towards refining and marketing infrastructure as well as joint ventures. Key developments included commissioning of India’s largest LPG cavern (80 TMT) at Mangalore, Barmer Palanpur Pipeline, and Bhatinda Sangrur Product Pipeline. HP Aviation also commissioned Solapur ASF, expanding its UDAN network to 58 stations.

HPCL Rajasthan Refinery Limited (HRRL)

Overall project progress reached 89 percent, with refinery units over 95 percent complete. Out of 13 process units, three major units (DHDT, HGU, and CDU/VDU) entered pre-commissioning. Pipelines for crude, natural gas, and products were completed and are ready for commissioning, with crude-in expected within the current calendar year.

Residue Upgradation Facility (RUF), Visakh

Pre-commissioning work is in the advanced stage, with hydrogen and flare systems commissioned and catalyst loading underway, following completion of integrity tests.

Network Expansion

HPCL added 351 retail outlets during the quarter, taking the total to 24,252, and commissioned 3 new LPG distributors (total 6,387). In its CGD network, 563 inch-km of steel pipelines and 116 km of MDPE pipelines were laid, along with 8,950 new domestic PNG connections.

Sustainability and Energy Transition

One new Compressed Biogas (CBG) plant was commissioned, taking the total to 17 operational plants, while 9 new LOIs were issued under SATAT. HPCL also commissioned a 1.5 MWp floating solar project at Visakh Refinery. In the retail transition, 42 new CNG outlets were added (total 2,113), and 304 more outlets were solarized, bringing renewable-powered retail outlets to 94 percent of the network (22,747 outlets).

About the company

Hindustan Petroleum Corporation Limited (HPCL), a subsidiary of ONGC, is a leading Indian energy company engaged in refining, marketing, and exporting petroleum products. Operating through its Downstream Petroleum and Other segments, it produces a wide range of fuels and products including LPG, petrol, diesel, kerosene, aviation fuel, lubricants, and bitumen. Established in 1910, HPCL is headquartered in Mumbai, India.

HPCL also deals in CNG, biofuels, petrochemicals, and greases, and has diversified into oil exploration and production, ethanol manufacturing, power generation from bagasse, LNG terminal operations, and renewable energy from wind and solar. Additionally, it runs retail fuel outlets, LPG distribution, natural gas pipelines, EV charging, and battery swapping networks. 

As of September 2025, the company’s shareholding pattern shows that promoters hold 54.90 percent of the total equity, indicating strong promoter ownership. Foreign Institutional Investors (FIIs) hold 14.48 percent, while Domestic Institutional Investors (DIIs) own 22.24 percent. The public shareholding stands at 8.37 percent, reflecting a healthy level of retail and institutional participation in the company.

Written By Akshay Sanghavi

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