Synopsis:
OMC posted a 548% YoY profit surge to Rs.4,111 crore in Q1FY26, despite a revenue decline. Strong investments fuel modernization and robust returns.
Known for harnessing mineral wealth through extensive mining operations, this leading public sector company is recognized for its significant contributions to regional economic growth. In this news article, expect details on its remarkable quarterly financial performance, including an extraordinary profit jump and notable changes in revenue figures.
Hindustan Petroleum Corporation Limited’s stock, with a market capitalisation of Rs. 85,740 crores, rose to Rs. 415, hitting a high of up to 3.20 percent from its previous closing price of Rs. 402.80. Furthermore, the stock over the past year has given a return of 3.53 percent.
Capacity Expansion Plans
HPCL plans to increase its total refinery capacity from 35.8 million metric tonnes per annum (MMTPA) in 2024-25 to 45.3 MMTPA by 2027-28, adding 9.5 MMTPA in capacity. Most of this increase will come from the new HRRL refinery, which will start with 9.0 MMTPA. Existing refineries at MR and VR will keep their current capacities, while HMEL will get a small boost of 0.5 MMTPA.
- To achieve this, HPCL has completed or is working on several key projects:
- The MR Expansion (from 7.5 to 9.5 MMTPA) was completed at a cost of Rs. 5,381 crore.
- The VR Modernization (from 8.3 to 15 MMTPA) is finished, costing Rs. 30,609 crore.
- The new HRRL Greenfield Refinery and Petrochemical complex is 87.4% complete as of June 2025 and is the largest project, costing Rs. 72,937 crore.
- The Lube Modernization & Bottom Upgradation Project at MR has made 4.2% progress, with a planned cost of Rs. 4,679 crore.
Also read: PSU stock jumps 8% after reporting 92% QoQ increase in net profits
Investments of last 5 Years
Over the past five years, the company has invested a total of Rs. 73,000 crore across various areas of its value chain. The largest investment, Rs. 24,350 crore, went into expanding refining capacity. Other major areas of spending include equity investments in joint ventures and subsidiaries (Rs. 16,165 crore), customer touch points (Rs. 9,626 crore), and LPG plants and depots (Rs. 8,853 crore).
Additional investments were made in pipeline networks (Rs. 6,495 crore), expansion of city gas distribution (Rs. 3,800 crore), digital transformation and R&D (Rs. 2,480 crore), and enhancing biofuels and renewable capacities (Rs. 1,260 crore). These investments reflect a comprehensive approach to strengthening and modernizing various segments of the company’s operations.
Q1 Financial Update
In Q1FY26, the company posted revenue of Rs. 110,825 crore, marking a YoY decrease of 2.7% from Rs. 113,888 crore in Q1FY25 and a QoQ increase of 1.1% over Rs. 109,633 crore in Q4FY25. Over the past three years, the revenue CAGR stands at 7%, indicating moderate long-term growth.
Profit for Q1FY26 stood at Rs. 4,111 crore, representing a YoY surge of 548% from Rs. 634 crore in Q1FY25 and a QoQ increase of 20% over Rs. 3,415 crore in Q4FY25. Despite this quarter’s sharp rebound, the three-year profit CAGR is -2%, reflecting volatility in profitability. The three-year ROE CAGR remains robust at 13%, showing improving returns.
Written By Fazal Ul Vahab C H
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