Hindustan Petroleum swings to loss as costs outpace revenue growth
Revenue rose 26.85% year on year, but expenses grew 42.22%; operating margin fell 5.81 percentage points and the stock declined 2.54% after the filing.
Filed 22 Jul 2026, 17:08 IST · after market close · Hindustan Petroleum Corporation Ltd (HINDPETRO)
Key takeaways
- Consolidated net profit swung to a loss of Rs 12,264.67 cr from profit of Rs 4,110.93 cr a year ago as expenses grew 42.22%, faster than revenue at 26.85%.
- Operating margin fell 5.81 percentage points year on year to 46.24%, marking its second straight quarterly decline after Q3FY26.
- The stock fell 2.54% in the first session after the results, broadly in line with its 2.55% median absolute move after the past eight results.
Price around the results
Revenue growth did not prevent a consolidated loss
Hindustan Petroleum's consolidated revenue increased 26.85% year on year and 22.31% sequentially, but the faster rise in expenses pushed profit before tax to a loss of Rs 18,199.49 cr from profit of Rs 5,657.90 cr a year ago. Operating profit still grew 12.70% year on year, showing that the loss was not caused by a collapse in operating profit alone. The quarter also saw a tax credit of Rs 5,905.40 cr, but net profit remained a loss of Rs 12,264.67 cr.
Costs narrowed margin for the second quarter in a row
Expenses grew 42.22% year on year against revenue growth of 26.85%, reducing operating margin by 5.81 percentage points to 46.24%. Sequentially, the same pattern persisted: expenses rose 33.05% while revenue grew 22.31%, cutting margin by 4.34 percentage points. Margin has now declined from 54.07% in Q3FY26 to 50.58% in Q4FY26 and 46.24% in Q1FY27.
Margin remains well above the reported Energy peer median
Hindustan Petroleum's 46.24% operating margin was 30.75 percentage points above the 15.49% median for the six Energy peers that had reported the same quarter. That relative margin position contrasts with the sequential deterioration in its own margin. Other income contributed -3.40% of pre-tax profit because pre-tax profit was negative, so it did not provide meaningful support to reported earnings.
The market reaction was close to the stock's usual move
The stock fell 2.54% in the first session after the results, with the decline broadly matching its 2.55% median absolute reaction across the past eight results. It was down 3.31% by the next session, while six of those eight earlier reactions were positive. The results were filed after market close on 22 July 2026.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,40,584 cr | ₹1,14,937 cr | +22.31% | +26.85% |
| Other income | ₹619 cr | ₹620 cr | -0.17% | +21.99% |
| Expenses | ₹75,572 cr | ₹56,801 cr | +33.05% | +42.22% |
| Operating profit | ₹65,012 cr | ₹58,136 cr | +11.83% | +12.70% |
| Operating margin (%) | 46.24% | 50.58% | — | — |
| Interest | ₹818 cr | ₹1,020 cr | -19.80% | +0.15% |
| Depreciation | ₹1,878 cr | ₹2,457 cr | -23.57% | +17.04% |
| Profit before tax | ₹-18,199 cr | ₹6,354 cr | — | — |
| Tax | ₹-5,905 cr | ₹1,578 cr | — | — |
| Net profit | ₹-12,265 cr | ₹6,065 cr | — | — |
| EPS (₹) | ₹-57.64 | ₹28.50 | — | — |
Operating margin of 46.24% compares with a Energy sector median of 15.49% across 6 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.54% | -2.02% |
| Next session | -3.31% | — |
Volume on the results session was 2.65× its 20-day average.
What to watch
- Whether consolidated operating margin holds above 46.24% after two consecutive quarterly declines.
- Whether expense growth narrows from 42.22% year on year toward the 26.85% revenue-growth rate.
- Whether profit before tax returns from the reported loss of Rs 18,199.49 cr.