HPCL Q3FY26 Earnings Results Out: Net Profit Missed Estimates Despite Higher Revenue

Hindustan Petroleum Corporation Ltd (HPCL) reported a net profit of ₹4,072.5 crore for the December quarter of FY26. The figure came in slightly below market expectations, even as the company delivered stronger-than-expected revenue performance. Revenue for the quarter stood at ₹1.15 lakh crore, exceeding analyst estimates and reflecting higher sales volumes and improved demand conditions.

Profitability Below Expectations

Operating performance remained steady but weaker than anticipated. EBITDA for the quarter was reported at ₹7,019 crore, lower than market estimates. EBITDA margin stood at 6.1%, missing expectations and declining from the previous quarter. While operating profit improved marginally on a sequential basis, margin pressure remained a key concern, mainly due to cost factors and product mix.

Net Profit Grows 6.3% QoQ

On a quarter-on-quarter basis, HPCL’s net profit increased by 6.3% compared to ₹3,830 crore in the September quarter. Revenue rose by 14.2% from ₹1.01 lakh crore, supported by higher throughput and improved market conditions. EBITDA increased 1.9% sequentially, but margins fell from 6.8% in the previous quarter to 6.1%, indicating limited operating leverage.

Strong Refinery Throughput

HPCL’s refinery operations continued to perform well during the quarter. Total crude throughput stood at 6.38 million metric tonnes (MMT). The Visakh refinery processed 4.01 MMT, operating at 106% of its installed capacity, while the Mumbai refinery processed 2.37 MMT, running at 99% of its capacity. High utilisation levels highlighted operational efficiency and strong refining activity.

LPG Buffer And Compensation Update

The company continued to face challenges related to domestic LPG under-recoveries. As of December 31, 2025, HPCL reported a negative LPG buffer of ₹13,424.11 crore. 

To address this, the government communicated compensation of ₹7,920 crore for LPG under-recoveries up to March 31, 2025, and estimated losses up to March 31, 2026. 

The compensation is scheduled to be paid in 12 equal monthly instalments starting November 2025. 

HPCL has already recognised ₹1,320 crore from two instalments, reducing the negative buffer to that extent.

HPCL Share Price Reaction

Following the earnings announcement, HPCL share price ended lower by 1.87% at ₹430.40 on the NSE, reflecting investor caution over margin pressures and the earnings miss.

Read more: Davos 2026: Adani Group Unveils US$66 Billion Investment Plan for Maharashtra.

Conclusion

HPCL delivered stable operational performance in Q3 FY26, supported by strong refinery throughput and revenue growth. However, lower-than-expected profitability, margin pressure, and ongoing LPG-related challenges weighed on overall results. Going forward, improvements in margins and clarity on subsidy compensation will remain key factors for investors to watch.

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