HPCL gains 2%, stock hits all-time high; market cap nears ₹ 1 trillion

Hindustan Petroleum (HPCL) share price today

 

Shares of state-owned oil marketing company (OMC), Hindustan Petroleum Corporation (HPCL) hit an all-time high of ₹463.65, gaining 2 per cent on the BSE in Tuesday’s intra-day trade. The stock surpassed its previous high of ₹459 touched on October 6, 2025.

 

In the past one month, HPCL stock has outperformed the market by surging 18 per cent, as compared to a 1.6 per cent rise in the BSE Sensex. Further, in the past six months, the stock has rallied 31 per cent, as against 12 per cent gain in the benchmark index.

 

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A sharp outperformance has seen the market capitalisation of HPCL inch towards ₹1 trillion-mark. At 09:48 AM; with ₹98,560 crore market capitalisation, HPCL was quoting 1.6 per cent higher on the BSE.  ALSO READ | LTIMindtree shares rise 4% on multi-year deal with global media firm

Strong Q1 operational performance – HPCL

 

In the past two months, the stock price of HPCL has gained 15 per cent after the company said June 2025 quarter (Q1FY26) witnessed a strong operational and financial performance. Refineries recorded quarterly throughput of 6.66 million metric tonnes (MMT) registering a year-on-year growth of 15.6 per cent, and an average utilisation of 109 per cent. The market sales volume of 13.04 MMT (including exports) for the quarter were at a record high, representing a growth of 3.2 per cent.

 

HPCL had reported a consolidated net profit of ₹4,371 crore for Q1FY26, against ₹356 crore recorded in the same period last year. The rise was attributed to inventory gains and improved margins resulting from maintaining retail fuel prices. HPCL recorded a gross refining margin (GRM) of $3.08 per barrel for Q1FY26, down from $5.03 per barrel in the same period last year. 

 

Revenue from operations, however, saw a marginal decline of about 0.65 per cent. The company posted ₹1.2 trillion in Q1FY26, compared to ₹1.21 trillion in the corresponding quarter of FY25.

 

HPCL said the quarter also marked significant progress in capital projects at refineries and the launch of new initiatives aimed at strengthening profitability. HPCL has increased its refinery output significantly on the back of recent expansion projects, and also continues to increase its sales volume.  ALSO READ | TCS vs Infosys vs HCL Tech: Here's the best IT stock for your portfolio

Motilal Oswal Financial Services reiterates ‘BUY’ rating on HPCL

 

Analysts at Motilal Oswal Financial Services in Q1 result update said the brokerage firm continues to prefer HPCL among OMCs due to the HPCL's higher leverage toward the marketing segment, higher dividend yield as HPCL’s capex cycle is tapering off, and start-up of HPCL’s multiple mega-projects in the next 12 months providing a push to earnings.

 

Analysts model a marketing margin of ₹3.3/lit for both MS and HSD in FY26/27, while the current MS and HSD marketing margins are above ₹6.5/lit. The de-merger and potential listing of the lubricant business, the commissioning of its bottom upgrade unit in 2QFY26’end, and the start of its Rajasthan refinery in FY26 are key catalysts for the stock.

 

Meanwhile, the Union Cabinet has approved ₹30,000 crore in LPG compensation to OMCs, which will be paid in 12 tranches. While the disbursement timeline remains undisclosed, the brokerage firm estimates HPCL to receive ₹4,050 crore in both FY26/27 (~27 per cent of total compensation). This will result in a 9 per cent increase in HPCL’s FY27E BVPS.