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
- HPCL reported a consolidated net loss of Rs 12,264.67 cr in Q1FY27, versus a net profit of Rs 4,110.93 cr a year earlier.
- Expenses grew +48.22% qoq against +22.31% revenue growth, pushing operating margin down 19.48 percentage points to -11.47%.
- The stock fell -2.54% in the first session, close to its 2.55% median absolute move after the last eight results, despite rising after six of them.
Price around the results
Q1FY27 reversed HPCL’s recent profit run
The consolidated result swung from a Rs 6,065.26 cr profit in Q4FY26 to a Rs 12,264.67 cr loss, despite revenue rising +22.31% qoq. The same deterioration is sharper year on year: revenue grew +26.85%, but the company moved from a Rs 4,110.93 cr profit to a loss. EPS consequently fell to -Rs 57.64 from Rs 28.50 in the preceding quarter.
Expenses, not interest, drove the margin collapse
Expenses grew +48.22% qoq and +51.77% year on year, well ahead of revenue growth, taking operating margin down 19.48 percentage points qoq and 18.30 percentage points year on year. Interest expense fell -19.80% qoq and was nearly flat year on year, so it was not the main cause of the loss. Other income represented -3.57% of pre-tax profit, offering no meaningful offset, while the tax line was -Rs 5,905.4 cr and reduced the reported net loss from the pre-tax loss.
HPCL ranked last among 17 reported Energy peers
HPCL’s -11.47% operating margin was 26.82 percentage points below the 15.35% median for the 17 Energy companies that had reported the same quarter, placing it first from the bottom. The margin had improved to 8.01% in Q4FY26 after moving between 5.29% and 6.83% in the prior four quarters, making the Q1FY27 reversal particularly sharp.
The stock reaction was ordinary in size but unusual in direction
The stock fell -2.54% in the first session after the results, was down -3.57% by the next session and remained down -1.71% after five sessions. The first-session move was almost identical to the 2.55% median absolute reaction across the last eight results. However, the direction differed from the stock’s recent pattern: it rose after six of those eight results and fell after two.
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 | ₹648 cr | ₹1,910 cr | -66.06% | +63.69% |
| Expenses | ₹1,56,707 cr | ₹1,05,726 cr | +48.22% | +51.77% |
| Operating profit | ₹-16,122 cr | ₹9,211 cr | — | — |
| Operating margin (%) | -11.47% | 8.01% | — | — |
| Interest | ₹818 cr | ₹1,020 cr | -19.80% | +0.15% |
| Depreciation | ₹1,878 cr | ₹2,457 cr | -23.57% | +17.04% |
| Profit before tax | ₹-18,170 cr | ₹7,644 cr | — | — |
| Tax | ₹-5,905 cr | ₹1,578 cr | — | — |
| Net profit | ₹-12,265 cr | ₹6,065 cr | — | — |
| EPS (₹) | ₹-57.64 | ₹28.50 | — | — |
Operating margin of -11.47% compares with a Energy sector median of 15.35% across 17 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.54% | -2.02% |
| Next session | -3.57% | — |
| 5 sessions | -1.71% | -3.05% |
Volume on the results session was 2.65× its 20-day average.
What to watch
- Whether operating margin recovers from -11.47% after the Q1FY27 reversal.
- Whether expense growth moderates from +48.22% qoq against revenue growth of +22.31%.
- Whether the tax rate moves below the reported 32.5% in the next quarter.