Hindustan Petroleum Corporation Ltd — Financial Report

Company Overview HPCL is a Maharatna public sector undertaking under the Ministry of Petroleum and Natural Gas, with ONGC as its parent company. It is engaged in refining, marketing petroleum products, exploring and producing hydrocarbons, and developing renewable energy infrastructure. Market Snapshot & Fundamentals • Market Cap: ~₹89,800–₹92,500 Cr • P/E (TTM): ~13.3–13.6× (below industry average ~21–34×) • EPS (TTM): ₹31.66 • P/B: ~1.7–1.8×; Book Value: ₹240.36 • ROE: ~13.2–14.0% • ROCE: ~11.0% Recent Financial Performance • Q4 FY25: Net profit rose ~26% to ₹3,415 Cr from ₹2,709 Cr YoY, while revenue slipped ~2.6% to ₹1,17,916 Cr. Dividend of ₹10.50 per share declared. • Q1 FY26: Standalone net profit surged ~1,128% YoY to ₹4,371 Cr (from ₹355 Cr). Income from operations dipped ~0.6% to ₹1,20,135 Cr. Business Strategy & Growth Drivers HPCL is expanding capacity through refinery modernization and new projects like the Barmer refinery and LNG terminal. It is increasing crude imports (notably from Iraq) and raising processing of cost-effective Russian oil to improve margins and product mix. Shareholding Pattern Promoters (Government via ONGC): ~54.9% Mutual Funds: ~18.7% FIIs: ~13.6% Retail investors: ~6.7% Strengths • PSU with strong backing and diversified refining and distribution network. • Attractive valuation compared to peers; improving profitability. • Robust quarter-on-quarter and year-on-year earnings growth. Risks • Moderate debt and exposure to volatile crude prices. • Refining margin fluctuations due to global energy cycles. Conclusion HPCL is a key integrated player in India’s oil and gas sector with strong fundamentals, long-term growth projects, and improving profitability. Valuations remain relatively attractive in comparison to peers, making it a compelling foundational holding, though execution risks and global oil market volatility must be watched closely.