HPCL net profit grows 57.7% in Q3 on higher GRMs, LPG compensation

State-run HPCL reported a sharp rise in December-quarter profit, aided by stronger refining margins and LPG compensation, even as sales volumes improved and revenue rose modestly year-on-year

State-run Hindustan Petroleum Corporation (HPCL) reported a 57.7 per cent growth in consolidated net profit at ₹4,011 crore for the third quarter of the current financial year, aided by improved gross refining margins (GRMs) and compensation for liquefied petroleum gas (LPG) losses.

 

How did HPCL perform sequentially and on revenue in Q3? 

Sequentially, HPCL’s net profit grew 4 per cent in the December quarter, compared to a profit of ₹3,859 crore in the July–September quarter. The company’s revenue grew 5 per cent year-on-year to ₹1.25 lakh crore in Q3FY26 from ₹1.19 lakh crore a year earlier.

 

In the first nine months of the current fiscal (9MFY26), HPCL’s net profit rose 78 per cent to ₹11,981 crore.

 

 

What drove the improvement in refining performance? 

HPCL’s improved performance during the quarter was attributed to higher product cracks, translating into better refining margins. The company’s average GRM for the first nine months stood at $6.91 per barrel, significantly higher than $4.73 per barrel in the corresponding period last year.

 

How did LPG compensation support earnings? 

The company also received compensation for LPG under-recoveries after the Union Cabinet recently approved a ₹30,000 crore package for the three state-owned oil marketing companies.

 

HPCL is set to receive compensation of ₹7,920 crore for LPG losses, to be disbursed in 12 equal instalments from November 2025, the company said in an exchange filing. During the quarter, it received two monthly instalments of ₹1,320 crore each for November and December.

 

The oil refiner’s under-recoveries on the sale of domestic LPG stood at ₹13,424 crore as of December 31, 2025.

 

How did HPCL’s physical performance fare in the quarter? 

HPCL’s sales volumes, including exports, rose 3.7 per cent in the December quarter to 13.34 million tonnes (MT). Combined sales of petrol and diesel increased 2.6 per cent during the period.

 

What was the company’s capex and throughput performance? 

The company’s capital expenditure stood at ₹11,094 crore during the first nine months of FY26, focused on strengthening refining and marketing infrastructure, including investments in subsidiaries and joint ventures. HPCL reported a 1.4 per cent decline in crude throughput at 6.38 million tonnes during the quarter.