Hindustan Petroleum Corporation Limited: 1Q: Weak qtr; crude supply manageable but marketing pressure persists

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Hindustan Petroleum Corporation Limited: 1Q: Weak qtr; crude supply manageable but marketing pressure persists

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Hindustan Petroleum Corporation Limited

1Q: Weak qtr; crude supply manageable but

marketing pressure persists

Maintain Rating: UNDERPERFORM | PO: 290.00 INR | Price: 385.15 INR

1Q’FY27: Wider than expected losses 24 July 2026

HPCL reported a wider-than-expected 1QFY27 standalone EBITDA loss of INR161bn (vs Equity

BofAe loss of INR136bn), impacted by (i) volatile crude prices, (ii) supply disruptions and

sub-optimal crude sourcing, (iii) elevated inventories maintained to ensure fuel Bharat Subramanian >>

availability, and (iv) significant marketing under-recoveries on MS, HSD and LPG. Research Analyst BofAS India

Reported GRM (before SAED on exports) was US$23.8/bbl (vs US$14.3/bbl in 4QFY26). +91 22 6632 8677

With net marketing margins likely to remain negative in the short to medium term, HPCL bharat.subramanian@bofa.com

is likely to be adversely impacted given its high marketing sales volumes-to-refining

throughput ratio. Maintain Underperform.

Stock Data

Supply risk manageable; RUF stabilization pending

Price 385.15 INR

Management indicated crude availability is not an issue, although pricing remains

Price Objective 290.00 INR

volatile; HPCL is fully covered till end-August and has started sourcing September

Date Established 14-May-2026

cargoes. On LPG, the company has diversified away from Strait of Hormuz dependence,

Investment Opinion B-3-8

including US cargoes and other sources. LPG losses have eased from INR680/cylinder in

52-Week Range 316.20 INR-508.45 INR

June to INR490/cylinder in July (1Q average: INR510/cylinder). Visakh RUF remains in the

Mrkt Val / Shares Out (mn) 8,486 USD / 2,127.8