Hindustan Petroleum Corporation (HPCL) has reported a 4.4% decrease in net sales, which now stands at Rs 1,09,632.8 crore. Sales from its main business of Downstream Petroleum dropped by 2.62% to Rs 1,18,355.69 crore, making up 99.83% of the total sales. However, the company’s “Others” segment saw a rise of 24.13%, reaching Rs 198.72 crore.
Despite the drop in sales, HPCL experienced a strong operational performance in Q4 of FY25. Its refineries achieved their highest-ever quarterly throughput of 6.74 million metric tons (MMT), a 15.4% increase from the previous year. The marketing segment also performed well, seeing a 2.7% year-on-year growth in domestic sales volume, which outpaced the industry’s growth rate of 2.4%.
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HPCL started operations at its LNG regasification terminal in Chhara, Gujarat, during this period. The Gross Refining Margin (GRM), which measures the profitability of refining, rose to US$ 8.44 per barrel in Q4 FY25 from US$ 6.95 per barrel in Q4 FY24.
Profit before interest, tax, and other costs (PBIT) increased by 27.8% to Rs 4,320.12 crore. This growth was led by the Downstream Petroleum segment, which saw a 29.1% increase in PBIT. Overall, HPCL’s operating profit margin grew from 4.26% to 5.29%, resulting in an 18.7% rise in operating profit to Rs 5,795.32 crore.
However, the company faced higher raw material costs, which rose from 28.65% to 34.94% of total sales. On the other hand, the purchase of finished goods cost dropped from 62.20% to 54.64%. HPCL’s overall other income grew by 28.38% to Rs 573.91 crore.
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For the full year, HPCL’s net sales slightly increased by 0.06% to Rs 4,34,106.17 crore. The Downstream Petroleum segment’s sales grew by 1.04%, while the “Others” segment saw a 4.24% decline. However, HPCL’s PBIT for the full year dropped sharply by 45% to Rs 10,982.33 crore. This was mainly due to lower refining margins, with the GRM falling to US$ 5.74 per barrel in FY25, down from US$ 9.08 per barrel in FY24.
In terms of operational achievements, HPCL recorded its highest-ever refinery throughput of 25.27 MMT and a record sales volume of 49.82 MMT, which helped it outpace the industry’s growth. Additionally, the company registered its highest-ever pipeline throughput of 26.90 MMT during FY25.
However, HPCL’s overall profit before tax dropped by 51.2% to Rs 9,119.47 crore, and net profit decreased by 57.9% to Rs 6,735.70 crore. The company also saw a decrease in cash flow from operations, which fell from Rs 23,851.87 crore in FY24 to Rs 14,227.74 crore in FY25.
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HPCL’s Board of Directors has recommended a final dividend of Rs 10.50 per share, subject to shareholder approval. The company also made significant investments in infrastructure, including the commissioning of the Chhara LNG terminal and ongoing work on the Barmer Refinery & Petrochemical Project.
Despite the challenges, HPCL is making strategic investments for future growth, including plans to complete India’s largest LPG cavern at Mangalore by FY26.
The company’s stock is currently trading at Rs 397.
