A. BUSINESS ENVIRONMENT
Global Economy
According to the International Monetary Fund s April 2026 World Economic Outlook, global output grew by 3.4% in CY 2025, consistent with the 3.4% growth observed in CY 2024, and is projected to moderate to 3.1% in CY 2026.
The moderation reflects offsetting forces. Headwinds from shifting trade policies are tempered by rising technology investment, particularly in artificial intelligence across North America and Asia. Growth continues to be underpinned by supportive fiscal and monetary policies, favourable financial conditions and private-sector adaptability.
Global headline inflation declined to 4.1% in CY 2025, largely due to softer demand and lower energy prices. Headline inflation is projected to reach 4.4% in CY 2026, reflecting anticipated increases in energy and food prices. Forecast inflation faces upside risk from the escalating conflict in West Asia.
Region Wise Output (% Y/Y)
| Region | CY25 | CY24 |
| World | 3.4 | 3.4 |
| Advanced Economies | 1.9 | 1.8 |
| US | 2.1 | 2.8 |
| Euro Area | 1.4 | 0.9 |
| Japan | 1.2 | -0.2 |
| Emerging Markets and Developing Economies | 4.4 | 4.5 |
| China | 5.0 | 5.0 |
| South Africa | 1.1 | 0.5 |
| Brazil | 2.3 | 3.4 |
Source: IMF World Economic Outlook Apr 26
Indian Economy
The provisional real GDP growth of 7.7% in FY 2025-26, with FY 2022-23 as the new base year, reflects the economy s resilience amid persistent global trade uncertainties. The economy has demonstrated sustained momentum, recording real GDP growth of 7.2% in FY 2023-24 and 7.1% in FY 202425. Growth has been supported by strong domestic demand, ongoing tax reforms such as income tax and GST rationalisation, relatively benign crude oil prices, government impetus on capital expenditure, supportive monetary and financial policies and lower inflation rates.
7.7%
India s provisional real GDP growth in FY 2026
Global Energy Scenario
Global energy demand growth slowed to 1.3% in CY 2025, down from 2.2% in CY 2024. A softer economic outlook, moderate growth of energy-intensive industries across some regions, reduced cooling demand and quicker efficiency gains contributed to the slowdown in demand growth.
Renewables: Solar PV, the largest single source of growth, met more than 25% of the incremental demand. This was the first time on record that a modern renewable source contributed the largest share of global energy demand. The 2025 increase in solar PV of 600 terawatt-hours (TWh) was the largest- ever increase in electricity generation by any source in one year, outside periods of post-crisis recovery. Low-emission sources combined - solar, wind, nuclear, hydropower and other renewables - contributed nearly 60% of the growth in global demand.
Annual global renewable capacity additions rose to a record 800 gigawatts (GW), of which solar contributed 75%.
Growth in energy demand by source, CY 2025
Natural Gas: Gas demand growth decreased significantly in CY 2025, rising by approximately 1%, compared with 2.8% in CY 2024, due to relatively elevated prices during the first half of the year.
Coal: Demand for coal rose by 0.4% in CY 2025, slower than the 1.4% rise in CY 2024, due to cooler weather and strong growth in renewables.
Oil: The demand for oil slowed to 0.7% in CY 2025, mainly due to weaker growth in petrochemical feedstocks, especially in China. Continued growth in electric vehicles also kept growth in oil demand for road transport muted.
Global electricity demand increased by 3% year-on-year in CY 2025, slowing from 4.4% the year before. While demand from electric vehicles (+38%) and data centres (+17%) grew rapidly, they represented only small portions of the overall electricity demand increase. The main drivers of growth remained industry, household appliances and commercial buildings (excluding data centres).
Indian Energy Scenario
Energy Demand in India grew by 1.1% in CY 2025, which was among the lowest rates recorded in recent years. In CY 2025, electricity demand in India grew by 1.4% y-o-y, marking the weakest growth rate since at least 1972, excluding the decline seen in 2020 during the pandemic. The muted growth was largely driven by milder weather conditions, with fewer heatwaves in the summer and an early onset of the monsoon season, which eased cooling needs and reduced peak loads during the hottest months.
Oil demand growth in India sharply slowed to only 0.6% in CY 2025. The gap between the low growth rate and India s rapid GDP expansion is mainly due to the significant increase in biofuel use in road transport, which grew by about 50% in 2025. Additionally, a strong monsoon season reduced transport activity. The main driver of increased oil product demand was LPG, mainly for clean cooking. This trend is supported by government initiatives encouraging LPG use in households, particularly in rural regions.
India s natural gas consumption decreased by 3.5% in CY 2025, with the demand for gas in power generation dropping nearly 10% due to robust growth in renewables and milder weather.
Renewable electricity generation grew by 20% in CY 2025, the strongest annual increase in the last decade. Solar PV generation led the growth, up by 24% in 2025, a sharp rise from 15% in CY 2024, which was boosted by substantial cost declines. India s annual renewable capacity additions increased by almost 60% in 2025, the fastest growth among major markets. This was driven by the commissioning of almost 50 GW of solar PV. India s wind additions, while much smaller compared with solar PV, doubled in 2025 to reach over 6 GW.
The scale of the nation s energy appetite was significant, with total petroleum product consumption reaching 243.2 million metric tonnes (MMT), natural gas consumption at 68.5 BCM and domestic crude oil processing at 272.1 MMT for the FY 2025-26 (PE).
20%
Growth in India s renewable electricity generation
International Crude Oil market
Dated Brent crude oil prices opened FY 2025-26 at US$ 67.7 per barrel in April 2025 and averaged US$ 70.3 per barrel over the year, with sharp volatility through the final quarter. For the first three quarters, prices trended lower as the market focused on a looming supply surplus and weaker demand expectations driven by escalating U.S.-China trade tariffs. Production discipline by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) and geopolitical tensions in Eastern Europe provided intermittent support, but rising non-OPEC+ output, led by the United States and Brazil, capped prices. Sentiment shifted decisively in Q4. A military escalation in West Asia in March 2026 led to the closure of the Strait of Hormuz (through which approximately 20% of global oil trade transits), producing a supply shock that drove prices sharply higher and closed the year with extreme volatility.
Dated Brent crude prices declined in Q1 FY 2025-2026, averaging US$ 67.8 per barrel compared with US$ 75.7 per barrel in Q4 FY 2024-2025, as the market shifted its focus from supply risks to demand and surplus concerns. Prices softened in April 2025 to US$ 67.8 per barrel amid weaker global demand sentiment following reciprocal tariff measures announced by the United States. Expectations of rising supply increased after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) signalled a faster-than-anticipated production increase from May 2025. The downward trend continued in May 2025, with prices averaging US$ 64.2 per barrel, due to concerns of a potential supply surplus from higher production. However, prices rebounded in June 2025 to US$ 71.5 per barrel as geopolitical tensions between Israel and Iran, along with the possibility of direct U.S. involvement, raised concerns about potential supply disruptions in the Middle East. Overall, prices moved lower during the quarter despite a recovery towards the end.
Dated Brent Crude Oil Prices (US$ per barrel)
Dated Brent crude oil prices rose slightly in Q2 FY 2025-26, averaging US$ 69.1 per barrel compared with US$ 67.8 per barrel in Q1. Prices remained elevated in July 2025 at US$ 71.0 per barrel as the market reacted to new EU sanctions on Russian oil, which raised concerns over supply stability for Asian refiners. In August 2025, prices averaged US$ 68.2 per barrel as the market balanced geopolitical risks against a looming global supply surplus and steady non-OPEC production growth. Prices softened slightly in September to US$ 68.0 per barrel as rising crude availability in the Americas weighed on the market. However, prices also remained supported throughout the quarter by a geopolitical risk premium following escalated drone attacks on energy infrastructure in Eastern Europe, alongside continued strategic reserve build-up by China, which added to spot demand. Despite underlying surplus concerns, these factors kept prices relatively firm compared to the previous quarter.
Dated Brent crude oil prices declined in Q3 FY 2025-26, averaging US$ 63.7 per barrel compared with US$ 69.1 per barrel in Q2. Prices fell to US$ 64.8 per barrel in October 2025 as new U.S. tariffs on Chinese imports dampened global demand expectations and logistical hurdles from sanctions impacted regional trade. This downward trend continued in November 2025, with prices averaging US$ 63.7 per barrel, as optimism for potential Russia-Ukraine peace talks began to erode the geopolitical risk premium. By December 2025, prices softened further to US$ 62.7 per barrel, pressured by forecasts of a significant global oil surplus in early 2026. Additionally, the market saw increased supply as new intermediaries began handling Russian oil exports that were previously restricted. Overall, the quarter saw a shift from geopolitical concerns toward a bearish outlook driven by rising supply and trade- related demand headwinds.
Dated Brent crude oil prices rose sharply during fourth quarter of FY 2025-26, averaging US$ 80.6 per barrel compared with US$ 63.7 per barrel in Q3. Prices remained relatively stable in January 2026 at US$ 66.8 per barrel and February 2026 at US$ 71.2 per barrel, as the market balanced a projected global supply surplus against persistent war talk involving Iran. However, the market environment changed substantially in March 2026, with prices averaging US$ 103.9 per barrel. This surge was driven by an escalating military conflict between Iran, the U.S., and Israel, which led to the effective closure of the Strait of Hormuz. As this critical chokepoint handles nearly 20% of the world s oil, the disruption caused a significant supply shock, sending prices briefly toward the US$ 130 per barrel mark. The benchmark for Middle Eastern high sulphur crude oil, Dubai crude oil price, even touched high of US$ 169 per barrel. This geopolitical crisis overshadowed fundamental surplus concerns, ending the financial year with extreme price volatility.
Indian Crude Oil Basket
The Indian crude oil basket price averaged US$ 71.0 per barrel during the financial year 2025-26. In Q1 2025-26, the basket settled at US$ 67.2 per barrel, pressured by a slowdown in Asian demand following a series of reciprocal trade tariffs.
Prices rose slightly in Q2 2025-26 to average US$ 69.8 per barrel, supported by new EU sanctions on Russian oil and a geopolitical risk premium from drone attacks on energy infrastructure in Eastern Europe.
The Indian crude basket fell in Q3 2025-26 to US$ 63.9 per barrel, the weakest quarter of the year. This decline was driven by concerns over a global oil surplus in early 2026 and weakened demand sentiment following further U.S. tariff announcements. However, prices surged in Q4 2025-26, averaging US$ 81.8 per barrel. The quarter saw extreme volatility as geopolitical war talk transitioned into a direct military conflict in West Asia in March 2026. The closure of the Strait of Hormuz, a critical transit point for the high-sulphur grades that dominate the Indian basket, pushed the basket to a monthly average of US$ 113.5 per barrel in March 2026. Despite surplus concerns earlier in the year, the financial year concluded with prices at multiyear highs due to this unprecedented supply shock.
Benchmark Refining Margins
Singapore benchmark refinery margins improved during FY 2025-26 as compared to the last financial year, averaging US$ 6.3 per barrel for the full year. While the first half of the year saw margins pressured by rising global refinery runs and a firm Dubai crude oil price, the latter half experienced a significant uplift. The primary driver for this annual strength was the substantial widening of middle distillate cracks in Q3 and Q4, fuelled by winter heating demand and an acute geopolitical risk premium following military conflicts in the Middle East. Despite persistent weakness in Naphtha and a mid-year correction in Fuel Oil, the sharp spike in Gasoil margins toward the end of the year, triggered by supply shock concerns, ensured that overall refinery profitability remained robust compared to the previous financial year.
Singapore complex refining margins averaged US$ 5.6 per barrel during Q1 2025-26, marking a significant improvement from US$ 3.2 per barrel in Q4 2024-25 as refined product prices outpaced the rise in crude costs. The quarterly recovery was primarily driven by Gasoline margins, which rose to US$ 9.9 per barrel (up US$ 3.9 per barrel quarter-on-quarter) due to robust summer travel demand and tight inventories in the Atlantic Basin, and High Sulphur Fuel Oil 180 CST, which improved to US$ 1.8 per barrel from US$ -2.0 per barrel following a seasonal surge in Middle Eastern power generation demand. While Gasoil margins also strengthened to US$ 15.8 per barrel amid late- quarter geopolitical fears in the Middle East, Naphtha margins remained the weakest segment at US$ -4.6 per barrel as a sluggish petrochemical complex and a shift toward alternative feedstocks continued to weigh on the market.
Singapore complex refining margins averaged US$ 3.8 per barrel during Q2 FY 2025-26, declining from US$ 5.6 per barrel in the previous quarter as rising global refinery runs and higher product availability began to saturate the market. The downward movement was primarily driven by a sharp correction
in High Sulphur Fuel Oil 180 CST margins, which fell to US$ -5.5 per barrel (lower by US$ 7.3 per barrel quarter-on-quarter) as seasonal cooling demand in the Middle East subsided and regional supplies increased. Gasoline margins also faced pressure during the quarter, averaging US$ 8.4 per barrel (lower by US$ 1.5 per barrel quarter-on-quarter) due to increased regional exports from Chinese and Southeast Asian refiners ramping up production to capture lower crude costs. While Gasoil margins provided some support, averaging US$ 18.7 per barrel (higher by US$ 2.88 per barrel quarter-on-quarter) amid steady demand and geopolitical premiums, the overall margin environment was further dampened by a sluggish petrochemical sector which dragged Naphtha margins down to US$ -6.8 per barrel.
Singapore Refined Product Margins against Dubai crude FY 2025-26 (US $ per barrel)
Singapore complex refining margins averaged US$ 7.4 per barrel during Q3 FY 2025-26, rising from US$ 3.8 per barrel in the previous quarter as refined product prices outpaced crude benchmarks. The primary driver for this growth was the substantial strengthening of middle distillate cracks, which saw Gasoil margins climb to US$ 24.5 per barrel (higher by US$ 5.8 per barrel quarter-on-quarter) due to a heightened geopolitical risk premium and a seasonal surge in winter heating demand. Gasoline margins also provided significant support, rising to US$ 13.4 per barrel (higher by US$ 5.0 per barrel quarter-on-quarter) as a series of planned and unplanned refinery outages in the region tightened supplies. While Naphtha margins showed a slight recovery to US$ -3.2 per barrel as regional maintenance limited availability, the overall gains were partially offset by High Sulphur Fuel Oil 180 CST margins, which softened to US$ -7.0 per barrel (lower by US$ 1.5 per barrel quarter-on-quarter) as summer cooling demand in the Middle East ended and global supply balances lengthened.
Singapore complex refining margins averaged US$ 8.78 per barrel during Q4 FY 2025-26, remaining firm compared to the previous quarter as product strength, particularly in late Q4, successfully counteracted extreme crude price volatility. The quarterly performance was heavily back-loaded, with the majority of the strength materialising in March 2026 as middle distillate cracks surged. Gasoil margins averaged US$ 35.4 per barrel, reaching record highs as the West Asia conflict and closure of the Strait of Hormuz triggered acute fears of diesel supply deficits, particularly for Europe-bound flows. While Gasoline margins softened to US$ 5.6 per barrel (lower by US$ 7.8 per barrel quarter-on-quarter) due to persistent regional length and trade frictions earlier in the quarter, Naphtha margins also faced renewed pressure, falling to US$ -6.0 per barrel amid high feedstock costs. Similarly, High Sulphur Fuel Oil 180 CST margins weakened to US$ -8.1 per barrel as the market focused on potential bunker demand destruction caused by the geopolitical crisis. Ultimately, the significant spike in middle distillates toward the end of the financial year was the primary driver that sustained Singapore refining profitability through the supply shock.
Domestic Petroleum Products Consumption
India s petroleum product consumption sustained its upward momentum in FY 2025-26, increasing by 1.7% to 243.2 MMT from 239.2 MMT in the previous year. The demand landscape during the year was shaped by robust industrial activity, expanding infrastructure and a surge in the aviation sector. The fiscal year was also marked by significant price fluctuations in the Indian Basket of Crude, which saw a sharp increase in early 2026 due to geopolitical tensions in West Asia.
The primary drivers of growth were the three key petroleum products - Petrol (MS), Diesel (HSD) and LPG. MS consumption maintained its strong upward trajectory, reaching a new high of 42.6 MMT, registering an impressive 6.5% growth, supported by rising automobile sales and increased mobility. HSD, accounting for nearly 39% of total consumption, grew by 3.6% to 94.7 MMT, reflecting sustained momentum in infrastructure development, freight movement, and overall economic activity. LPG consumption also continued its steady growth, increasing by 6% to 33.2 MMT, driven by household and industrial demand; however, growth in the latter half of the year faced competition from the expanding Piped Natural Gas (PNG) network in urban areas.
Despite multiple headwinds faced by the aviation sector during the year, ATF consumption recorded a moderate growth of 2%, indicating resilience in air travel demand. Bitumen consumption rose by 3%, supported by continued focus on road construction and infrastructure development.
In contrast, the market also exhibited structural shifts. Naphtha consumption declined sharply by 9.9%, primarily due to substitution by natural gas and other alternative feedstocks. Similarly, Fuel Oil consumption registered a marginal decline of 1.5%, reflecting policy-driven transitions towards cleaner fuels and targeted restrictions on its usage.
Petroleum Products Consumption in FY 2025-26
| 42.6 MMT MS | 94.7 MMT Diesel | 33.2 MMT LPG | 9.2 MMT ATF |
| 6.5% | 3.6% | 6.0% | 2.0% |
| 1.0 MMT LDO | 19.8 MMT Pet coke | 0.5 MMT SKO | 8.8 MMT Bitumen |
| 20.4% | 4 (9.8)% | 1 12.7% | 3.0% |
| 11.7 MMT Naphtha | 6.4 MMT FO/LSHS | ||
| (9.9)% | 4 (1.5)% |
Outlook
As CY 2026 progresses, the global economy is facing a shock stemming from a military conflict in West Asia that has persisted since late February 2026. The conflict has caused significant humanitarian suffering, damage to critical infrastructure and disruptions to maritime and air traffic in the region. Its effects are being transmitted globally through higher commodity prices, rising inflation expectations, particularly in energy and food, and heightened risk aversion in financial markets. The global economic impact will depend on the duration, intensity and scope of the conflict, which remain uncertain.
Against this backdrop, the International Monetary Fund s World Economic Outlook projects global GDP growth of 3.1% in CY 2026. Growth is expected to improve modestly to 3.2% in CY 2027, contingent on an easing of these global pressures.
| Projected Global GDP Growth (%) | |
| 3.1% | 3.2% |
| CY 2026 | CY 2027 |
The Indian economy is expected to grow at 6.6% in FY 2026-27, according to projections by the Reserve Bank of India. However, elevated input costs driven by rising energy prices and higher international freight and insurance costs, along with ongoing supply-chain disruptions, may constrain the availability of key inputs for downstream sectors, potentially weighing on growth. Despite these headwinds, the underlying fundamentals of the Indian economy remain strong, enhancing its resilience to external shocks. Looking ahead, domestic drivers such as favourable agricultural prospects, the continued impact of GST rationalisation, and the strong balance sheets of corporates and financial institutions, along with supportive monetary and financial conditions, are expected to support economic activity.
Factors driving global energy demand are shifting. Demographic influences are waning as population growth slows. The share of the cement, iron, and steel industries in global energy demand growth is declining, while the share of industries such as plastics and manufacturing is expanding. Space cooling is a key demand driver as temperatures rise, especially in emerging economies with rising incomes. Structural changes in economies and the emergence of new demand drivers, such as AI and clean-technology manufacturing, are driving up energy consumption in specific industrial subsectors. Emerging sources of electricity demand, such as electric vehicles, heat pumps and highly concentrated loads like data centres, are expected to grow rapidly. Furthermore, total electricity generation from renewables is overtaking that from coal. Together, renewables and nuclear are expected to account for around half of global electricity generation by 2030.
India has already achieved 50% of its installed capacity from non-fossil fuel sources ahead of its 2030 target under the Paris Agreement. Between 2026 and 2030, the country is expected to add almost 300 GW of renewable power capacity.
Addition of 300 GW Renewable power capacity in India between CY 2026-30
The outlook for global oil demand is forecast to rise by approximately 1.4 million barrels per day (mb/d) year-on-year in 2026, reaching an average of approximately 106.5 mb/d. The above demand will be driven almost entirely by non-OECD regions, mainly China, India, and Other Asia. Gasoline is set to grow by about 0.4 mb/d, y-o-y, jet/kerosene by about 0.3 mb/d, y-o-y, and diesel by about 0.2 mb/d, y-o-y during full year CY 2026. This trend is anticipated to continue into 2027 with a similar increase of 1.3 mb/d.
According to OPEC s global outlook, India s demand is projected to rise from 5.65 million barrels per day (bpd) in 2025 to 5.87 million bpd in 2026, a 3.89% increase.
This momentum is expected to continue, with demand forecast to reach 6.09 million bpd in 2027, growing at 3.75%. Transportation fuels such as gasoline, jet/kerosene, and diesel are projected to continue being the primary sources of demand growth. This expansion is underpinned by powerful structural drivers, including rapid urbanisation, industrialisation, and a wealthier middle class with a growing appetite for mobility and tourism.
5.87 million bpd
India s oil demand in CY 2026
Natural gas demand in India is expected to increase in 2026, supported by the continued development of the national pipeline grid and city gas infrastructure, along with higher industrial usage, particularly in the fertiliser and petrochemical sectors. This steady growth in natural gas consumption is a key element of India s unique energy transition pathway. As a developing nation, India must carefully balance its international climate commitments with the need to ensure energy remains affordable and accessible for its large population. The increasing share of natural gas in the energy mix reflects this pragmatic approach, moving toward a low-carbon future while supporting sustained economic growth.
B. FINANCIAL PERFORMANCE
The Corporation reported a strong financial performance with a Standalone Profit After Tax (PAT) of Rs.17,175 crore during FY 2025-26.
HPCL continues to command strong credit ratings assigned by various credit rating agencies:
| Instrument | Rating Agency | Rating as of 8 July 2026 | Outlook as of 8 July 2026 | Remark |
| International Long-Term Rating / USD Bond rating | Moodys | Baa3 | Stable | At par with Indias sovereign rating |
| International Long-Term Rating / USD Bond rating | Fitch | BBB- | Stable | At par with Indias sovereign rating |
| Long Term Debt | CRISIL | AAA | Stable | Highest rating grade by CRISIL |
| Long Term Debt | India Ratings | AAA | Stable | Highest rating grade by India Ratings |
| Long Term Debt | ICRA | AAA | Stable | Highest rating grade by ICRA |
Gross Sales
The Corporation s gross sales (inclusive of excise duty) stood at Rs.4,76,411 crore in FY 2025-26, as against Rs. 4,64,247 crore in FY 2024-25. Total product sales for FY 2025-26 was 51.45 MMT, compared to 49.82 MMT in FY 2024-25.
Profit before Tax
The Corporation reported a Profit Before Tax of Rs.22,907 crore in FY 2025 -26, compared to Rs.9,621 crore in FY 2024-25.
Provision for Taxation
The Corporation s income tax expense for FY 2025-26 was Rs.5,732 crore, as against Rs.2,257 crore in FY 2024-25.
Profit after Tax (PAT)
The Profit After Tax for FY 2025-26 stood at Rs.17,175 crore, compared to Rs.7,365 crore in the previous year.
Depreciation and Amortisation
Depreciation for FY 2025-26 amounted to Rs.7,125 crore, as compared to Rs.6,090 crore in FY 2024-25.
Borrowings
Total borrowings stood at Rs.47,599 crore as on 31 st March 2026, compared to Rs.63,323 crore as on 31 st March 2025. Long-term borrowings comprised Non-Convertible Debentures (NCDs), foreign currency bonds, loans from foreign banks and the Oil Industry Development Board (OIDB), and term loans from domestic banks. Short-term borrowings comprised short-term rupee loans from banks, commercial paper, drawdowns under the Clearcorp Repo Order Matching System (CROMS) and Tri-party Repo System (TREPS), buyers credit and revolving credit lines.
The long-term debt-to-equity ratio stood at 0.60 as on 31 st March 2026 (31 st March 2025: 0.94). Including short-term borrowings, the debt-to-equity ratio stood at 0.80 as on 31 st March 2026 (31 st March 2025: 1.38).
Capital Assets
Net fixed assets, including capital work-in-progress stood at Rs.1,03,324 crore as on 31 st March 2026 (31 st March 2025: Rs.99,169 crore).
Investments
Total investments stood at Rs.24,708 crore as on 31 st March 2026 (31 st March 2025: Rs.24,235 crore).
Gross Refining Margins (GRMs)
The Corporation s average Gross Refining Margin (GRM, gross of export cess) for FY 2025-26 stood at US$ 8.79 per barrel (FY 2024-25: US$ 5.74). Refinery-wise, Mumbai averaged US$ 8.04 per barrel (FY 2024-25: US$ 5.92) and Visakh averaged US$ 9.26 per barrel (FY 2024-25: US$ 5.63).
Earnings per Share (EPS)
Earnings per share for FY 2025-26 stood at Rs.80.72, compared to Rs. 34.61 in FY 2024-25.
Dividend
The Board of Directors has recommended a final dividend of Rs.19.25 per equity share (face value Rs.10) for FY 2025-26. This final dividend is in addition to the interim dividend of Rs. 5.00 per equity share paid for FY 2025-26.
Key Financial Ratios
The Corporation s key financial ratios are set out below:
| Ratio Description | FY 2025-26 | FY 2024-25 |
| Debtors Turnover Ratio (Times) | 49.64 | 43.97 |
| Inventory Turnover Ratio (Time) | 12.29 | 12.88 |
| Interest Service Coverage Ratio (Times)* | 8.40 | 4.42 |
| Current Ratio | 0.64 | 0.60 |
| Long term Debt Equity Ratio* | 0.60 | 0.94 |
| Operating Margin (%)* | 4.88 | 2.25 |
| Net Profit Margin (%)* | 3.59 | 1.58 |
| Return on Net Worth (%)* | 32.47 | 16.93 |
*During FY 2025-26, better refining and marketing margins led to improved profitability, resulting into overall reduction in borrowings as well increased net worth. Lower Debt alongwith lower rate of interest, and improved profitability has resulted in a better Interest Service coverage ratio as compared to previous year. Return on Net Worth has increased in FY 2025-26 primarily on account of better refining and marketing margins, which led to improved profitability.
C. STRATEGY
HPCL s strategy takes a balanced and pragmatic approach to the evolving energy landscape. The Corporation continues to strengthen its core business in traditional fuels, ensuring security, affordability and supply reliability for India s growing needs. In parallel, it is reducing the carbon intensity of refining operations through residue upgradation, fuel substitution (green hydrogen replacing grey hydrogen), electrification and renewable integration. The Corporation is also accelerating investments in emerging and alternate fuels, including biofuels, LNG, EV charging infrastructure and green hydrogen. During the year, as part of its green initiative, HPCL awarded a work order for a 5 KTA green hydrogen project at its Visakh Refinery.
This dual-track approach allows HPCL to meet today s demand efficiently while positioning the Corporation as a leader in the energy transition, aligned to market shifts and the evolving expectations of customers, regulators and investors.
HPCL is also leveraging its R&D infrastructure at HP Green R&D Centre (HPGRDC) to develop products and technologies for the energy transition.
The strategy rests on three pillars: strengthening existing refining and marketing businesses, building new growth engines in petrochemicals and natural gas and pursuing green and emerging opportunities, with technology and innovation as cross-cutting enablers.
The company has undertaken several large-scale projects to strengthen its existing businesses in refining and marketing. HPCL commissioned Residue Upgradation Facility (RUF) at Visakh Refinery, featuring the world s first and largest LC-Max unit expanding refinery capacity by 3.55
MMTPA. The LC-Max-based RUF is among the world s most advanced facilities, enabling ~93% conversion of bottom- of-the-barrel residues into high-value distillates. Beyond the capacity expansion, the unit enhances the refinery s ability to process heavier and opportunity crudes and lifts the Nelson Complexity Index to 11.6, maximising recovery of high-value products with minimal residue generation.
Progressive commissioning of the greenfield refinery- cum-petrochemical complex through HPCL s joint venture, HPCL Rajasthan Refineries Limited (HRRL), is underway. The HRRL project comprises 9 MMTPA of refining capacity, including 2.4 MMTPA of petrochemical capacity. Separately, the Corporation continued to strengthen its polymer brand HP Durapol during FY 2025-26 by marketing HDPE, LLDPE and PP grades in strategic markets.
Refinery expansion has been accompanied by build-out of the supply and distribution network to evacuate the increased output. These major projects will enhance HPCL s capacity and will create value in the coming years.
The LNG import and regasification terminal of HPCL LNG Limited (HPLNG), a wholly owned subsidiary of HPCL, at Chhara Port in Gujarat is now operational. An MoU was signed with the Indian Gas Exchange (IGX) to list spare LNG storage capacity slots (both quantity- and period-based), enhancing commercial flexibility and secondary-market participation. This is in addition to term LNG contracts secured for supply continuity for captive consumption.
HPCL s wholly owned subsidiary for green businesses, HP Renewable and Green Energy Limited (HPRGE), is operational and consolidating various opportunities. Two Compressed Bio-Gas (CBG) plants have been set up and another 24 are in various stages of execution. HPCL continues to leverage its network of over 25,000 retail outlets to develop the electric vehicle (EV) ecosystem in collaboration with technology start-ups, alongside forays into non-fuel businesses.
Infrastructure augmentation strengthened supply resilience by commissioning the 80 TMT LPG cavern at Mangalore in 2025-26. Further, the 201 km Haldia- Panagarh LPG Pipeline is at an advanced stage of completion to cater to LPG demand in West Bengal, Bihar, and Jharkhand, while the 540 km Visakh-Raipur Pipeline project is progressing across Andhra Pradesh, Odisha and Chhattisgarh to strengthen product evacuation from Visakh Refinery and enhance onward regional supply logistics through rail/road.
HPCL continues to use technology to drive business transformation and deliver customer value. A Digital Transformation Roadmap is in place, with multiple projects completed and others ongoing. Digital technologies are being applied to improve operational effectiveness, efficiency and customer experience. Initiatives launched during the year include a cloud-based CRM, the Central Energy Monitoring System and Hyperlocal Search Marketing.
Project Samriddhi, an EBITDA improvement programme covering cost takeout and margin improvement, was launched in May 2025 with a target of US$ 0.50 per barrel on total sales volume. Initiatives are underway across all SBUs and benefits are accruing. Cumulative accruals for the year crossed the Rs.500 crore target, at US$ 0.54 per barrel.
D. INTEGRATED MARGIN MANAGEMENT
The Integrated Margin Management (IMM) group enhances Net Corporate Realisation (NCR) by planning and optimising end-to-end supply chain logistics from crude oil to customers and aligning the strategic business units to a common corporate goal. During FY 2025-26, IMM continued to drive HPCL s planning operations against this objective.
IMM captured margin opportunities by optimising the processing slate across regular, new and opportunity crude grades available at competitive rates at both refineries. These efforts helped HPCL achieve its highest-ever crude throughput in FY 2025-26. Overall value realisation was enhanced by increased production, higher-value product sales and improved demand forecast accuracy.
The IMM group drives margin improvement ideas generated across the Corporation through an Idea Management Office (IMO), Idea Junction, which tracks execution. During FY 2025-26, 2,387 ideas were submitted and evaluated. To strengthen employee participation across all SBUs, the IMO organised idea workshops, and five SBUs launched theme-based idea campaigns.
Under Project Samriddhi, IMM took initiatives across margin maximisation and cost optimisation themes, yielding substantial savings during FY 2025-26. Significant initiatives included MS maximisation at Visakh Refinery and improved utilisation of refinery intermediates.
E. REFINING PERFORMANCE
Crude Oil Imports
In FY 2025-26, HPCL s crude oil imports for the Visakh and Mumbai refineries stood at 22.08 MMT, supplemented by 4.14 MMT from indigenous sources. The import portfolio comprised 16.27 MMT of high-sulphur crude and 5.81 MMT of low-sulphur crude. HPCL s in-house Trading Desk, which commenced spot imports in July 2024, tied up approximately 8.2 MMT (around 60 million barrels) during FY 2025-26, contributing to a notable reduction in procurement cost.
Refining
HPCL Refineries achieved a highest-ever crude throughput of 26.04 MMT in FY 2025-26, surpassing the previous record of 25.27 MMT in FY 2024-25. The result was driven by proactive planning, technology-enabled optimisation and agile decision-making, and was sustained through the geopolitical disruptions of March 2026 by robust crude planning and supply chain management.
HPCL Refineries operated above design capacity at an average utilisation of 106.3%. Visakh Refinery processed its highest-ever annual crude throughput of 16.04 MMT (107% capacity utilisation), supported by enhanced reliability and effective use of upgraded process units. Mumbai Refinery achieved its highest-ever annual throughput of 10.00 MMT (105% capacity utilisation).
HPCL Refineries and the supply chain function continuously scout, validate and widen the crude basket, enhancing operational flexibility and profitability in a volatile market. During FY 2025-26, HPCL processed 10 new crude grades, the highest in any single year, surpassing the previous record of eight grades in FY 2024-25.
Operational and optimisation initiatives delivered record production of MS, HSD and LPG, with the Corporation-wide distillate yield reaching 75.8 wt%.
Visakh Refinery and Mumbai Refinery achieved distillate yields of 74.5 wt% and 77.9 wt%, respectively. Mumbai Refinery recorded its lowest-ever Fuel & Loss of 6.75 wt% during the year.
Operational reliability remained a priority. Turnarounds of LOUP and SEU-I at Mumbai Refinery were completed during the year. Visakh Refinery transitioned fully to the 220 kV double-circuit grid (from 132 kV). At Mumbai Refinery, an obsolescence management plan for electrical equipment was issued and online monitoring of control- room environment quality was enhanced. Improved practices in static, rotary, electrical and instrumentation maintenance, together with field-level awareness, have improved reliability and significantly reduced unplanned outages.
Under Project Samriddhi, refineries pursued cost takeout and value-addition initiatives focused on eliminating non-value-adding costs, optimising energy consumption, improving process efficiency and enhancing supply chain effectiveness. These initiatives yielded significant savings during the year.
Energy conservation and efficiency reduce operational costs while limiting environmental footprint. Through process optimisation, advanced control systems, energy recovery, equipment upgrades, renewable-energy integration and employee engagement, HPCL refineries achieved energy savings of 86,542 SRFT during the year, equivalent to a reduction of approximately 0.28 MMT of CO 2 emissions.
As part of HPCL s sustainable energy initiatives, a Green H 2 Purchase Agreement (GHPA) was signed with OCIOR Green Fuels Pvt Ltd on 29 January 2026 for supply of 5 KTPA to Visakh Refinery on a BOO basis. A 1,200 kWp floating solar installation was added at the Visakh Refinery reservoir, taking the refinery s total solar capacity to 2,600 kWp. The refineries are phasing in electrical heat tracing in place of steam-based heat tracing. Mumbai Refinery maintains one of the lowest specific water consumption levels in the industry.
India s energy demand is set to grow steadily. HPCL is proactively upgrading and expanding its refining capacities to effectively meet the growing demand.
HPCL commissioned the Residue Upgradation Facility (RUF) at Visakh Refinery in December 2025, featuring the world s first and largest LC-Max unit. With 3.55 MMTPA of capacity, the LC-Max-based RUF enables approximately 93% conversion of bottom-of-the-barrel residues into high-value distillates and is among the most advanced facilities of its kind globally. The unit enhances the refinery s ability to process heavier and opportunity crudes while improving product quality and operational efficiency. The RUF is equipped with DigiSuite, which provides real-time process insights and monitors catalyst performance and equipment health through advanced data analytics.
To meet rising demand for lube oils, the Mumbai Refinery has taken up the Lube Modernisation and Bottom Upgradation Project. The project will lift LOBS production from 475 KTPA to 764 KTPA, introducing higher-grade Group II+ and Group III LOBS, and increase Bitumen production by approximately 487 KTPA. The project is progressing on schedule and has achieved key milestones.
HPCL Rajasthan Refinery Limited (HRRL), a joint venture between HPCL and the Government of Rajasthan, is setting up India s first integrated grassroots refinery-cum- petrochemical complex at Pachpadra, in Balotra district of Rajasthan. HRRL is HPCL s largest investment to date and among the largest projects under implementation in India. The complex carries the highest Petrochemical Intensity Index in India at 26%, with flexibility to switch between fuel and petrochemical products as price and demand conditions change. Progressive commissioning of the 9 MMTPA integrated complex is underway: crude has been introduced in the CDU/VDU, enabling sequential commissioning of secondary units.
Completion of these projects and new business initiatives will optimise refining processes, versatility and capacity to meet diverse market demands. They are also expected to reduce the environmental footprint and fulfil the national priorities of energy accessibility, affordability, security and sustainability.
F. MARKETING PERFORMANCE
In FY 2025-26, the Corporation achieved its highest-ever sales volume of 51.4 MMT (including refinery exports), up 3.3% year-on-year. The Retail, LPG, Aviation and Natural Gas SBUs each posted highest-ever sales.
51.4 MMT
Sales volume in FY 2026
Retail
In FY 2025-26, the Retail business recorded its highest- ever sales volume of 30.83 MMT, driven by network expansion and sustained efforts to enhance the customer value proposition through new services and green energy initiatives.
During the year, HPCL commissioned 1,353 new retail outlets, taking the total network to 25,098 outlets. Alternative-fuels infrastructure also expanded, with 215 new CNG stations (total 2,253) and 285 additional EV charging facilities including battery swapping, taking the total EV-enabled outlets to 5,533 (including 154 Battery Swapping Stations) as of 1 April 2026.
Customer experience was enhanced through ITPS (Integrated Transaction Processing System)-enabled accurate billing, faster service delivery, strict adherence to SOPs and CCTV-based monitoring. The Corporation s flagship loyalty program, DriveTrack Plus, continued to gain traction in the commercial vehicle segment through strategic onboarding of leading OEMs, NBFCs and large fleet operators.
Highway presence was further strengthened through the Wayside Amenities (WSAs) initiative, with 14 new WSAs and Direct Dealerships commissioned, taking the total to 53. In addition, 124 Apna Ghar trucker facilities were established, improving comfort for the driver community.
Under the Non-Fuel Business (NFB) vertical, HPCL expanded partnerships with well-known national and international QSR brands to increase its footprint at retail outlets. New tie-ups were entered into with Domino s Pizza, Food On Wheel, Nirula s, Nescafe, Desire Foods, HungerBox and FoodMojo for QSR and dhaba expansion. Tie-ups were also established with Devyani International and FoodMojo for multi-brand food courts at WSAs and large-format outlets. Vehicle care services were strengthened through tie-ups with Tata Motors, Go Garage, TVS and Bajaj Auto.
The HaPpyShop convenience store brand was expanded to 22 additional locations. Product offerings were enhanced with branded packaged drinking water under HP Paani and co-branded auto care products. As part of HPCL s environmental commitment, bulk Diesel Exhaust Fluid (DEF) dispensing facilities were made available at 367 outlets, while packed DEF was available across the retail outlet network.
Sustainability initiatives were further scaled up, with solar panels installed at an additional 1,471 retail outlets. As of April 1, 2026, a total of 23,824 outlets (~95% of the network) are solarised.
© Read more on page 67 LPG
During FY 2025-26, the HPCL s LPG brand, HP Gas achieved its highest-ever dispatch of 9.41 million metric tonnes (MMT), up 5.2% year-on-year. Domestic LPG remained the anchor segment with sales at 7.72 MMT (growth: 3.6%), while Non-Domestic Packed LPG reached 0.91 MMT (growth: 7.3%). Bulk LPG emerged as a key growth driver, registering 0.78 MMT (growth: 19.6%). Premium offerings such as Appu LPG and Flame Plus LPG continued to report strong double-digit growth, reinforcing HPCL s strategic focus on differentiated, higher-margin products.
Operational efficiencies led to a reduction in bottling costs from Rs.17.6 to Rs.15.6 per cylinder. Savings of Rs.135 crore were realised under the Samriddhi Cost Takeout initiative through sourcing optimisation, centralised contracting and logistics efficiencies, including Ship-to-Ship (STS) operations. Additional savings came from renewable- energy adoption, scrap monetisation and standardisation of operations.
Operational performance remained robust, with record bottling throughput of 8.63 MMT and productivity improving from 1,523 to 1,700 cylinders per hour. The Plant Operability Index improved from 61 to 87, reflecting enhanced asset reliability and process discipline. Deployment of NOVEX enabled real-time monitoring and data-driven decision-making, improving efficiency and reducing downtime.
During the year, 49% of total LPG spot purchases was sourced from outside Gulf countries strengthening diversification of concentrated LPG procurement.
Infrastructure augmentation strengthened supply resilience, with the commissioning of the 80 TMT LPG cavern at Mangalore and capacity enhancements at Hazarwadi and Panagarh, taking total storage capacity to 230.7 TMT. Facilities at Barmer and enhanced pipeline connectivity further optimised logistics efficiency.
Customer additions remained strong, with 17.3 lakh new connections added and the distributor network expanding to 6,389. Digital initiatives such as eKYC and DAC (Delivery Authentication Code) improved transparency and customer experience.
Safety remained a core focus, with 1,481 Sadak Suraksha trainings, 684 fire drills and an HSE Index of 97.4%. Deployment of video analytics, VTS and centralised monitoring further strengthened compliance and oversight.
Sustainability initiatives, including renewable energy adoption and circular economy interventions, contributed to both cost efficiencies and environmental stewardship.
© Read more on page 75 Lubricants
In FY 2025-26, the Lubricants business recorded sales of 686 TMT, including export volumes exceeding 6.0 TMT, extending our operational reach across 32 countries. HPCL s international subsidiary, HPCL Middle East FZCO, delivered record sales across the Middle East and Africa. HPCL entered new markets in Senegal, Malawi and Uganda (Africa) and Vietnam and Indonesia (Southeast Asia), and consolidated market share across the GCC (Oman, UAE, Qatar), Africa (Nigeria, Kenya, DRC) and South Asia (Nepal, Sri Lanka, Cambodia). Domestic toll blending operations commenced in Sri Lanka, optimising the local product supply.
Domestically, HPCL maintained leadership in the branded lubricant market with a 16% share in Commercial Automotive and 15% in Industrial Lubricants, and remained the leading supplier for two-wheelers. OEM partnerships exceeded 50, including an exclusive lubricant supply agreement with Bajaj Auto Limited for its three-wheeler segment and collaborations with leading tractor brands.
To meet diverse market needs and strengthen the competitive position, the portfolio was expanded with new product launches in the premium range under the Futur-X series across the diesel engine oil and scooter segments. On the digital front, customer engagement was further enhanced through the successful implementation of a new cloud-based CRM platform, leveraging key modules.
With a blending capacity of 340 TMT across four plants and a wide range of SKUs, HPCL continues to be a strong player in both domestic and global lubricants markets.
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Direct Sales (Industrial and Consumer Sales)
The Direct Sales SBU recorded total sales of 5.9 MMT in FY 2025-26, reflecting sustained momentum and a continued focus on value creation. The year witnessed standout product-wise achievements, led by HSD led with its highest-ever annual sales of 1,627 TMT, lifting HPCL to second-largest HSD marketer in the industry. MS reached a highest-ever 16 TMT and Hexane a highest-ever 34 TMT.
The SBU shifted from discount-led to value-based selling, supported by focused initiatives. Additised HSD was supplied to 17 customers, IoT-based CP automation was deployed at two locations and automated inventory alerts were rolled out for KSRTC, improving stock planning and service reliability. Structured customer engagement through QC-based comparative analysis and walk-in audits further deepened trust and strengthened longterm relationships.
Strong outcomes were also delivered under Cost Takeout (Samriddhi) initiatives, with total savings of Rs.5.6 crore that contributed significantly to one of the Corporation s key priorities for FY 2025-26.
A focused thrust on Energy Contracts led to the onboarding of 137 accounts across Lubes, LPG and Natural Gas, positioning the Corporation as a comprehensive energy solutions provider. This initiative further strengthened strategic partnerships, enabled deeper multi-product penetration, and reflected strong cross-SBU alignment in delivering customer-centric solutions. It also laid the groundwork for the institutionalisation of a Key Account Management framework. Sales to these accounts increased to 580 TMT from 478 TMT, registering a robust growth of 21%, indicating a significant improvement in share of business.
Infrastructure additions included the hiring of 35 TMT storage capacity at Chennai (FO: 28 TMT, Bitumen: 7 TMT), enhancing operational flexibility. Safety compliance reached 100%, covering 837 Consumer Pump locations, 17 Railway Consumer Depots (RCDs), and all Total Fluid Management (TFM) locations and Bitumen Contractor Operated Depots (CODs).
© Read more on page 77 Aviation
HPCL s Aviation business recorded ATF sales of 1.16 MMT in FY 2025-26, up 6.5% year-on-year, reflecting strong aviation demand and the Corporation s expanding market presence.
This performance was underpinned by the strategic expansion of the network footprint, which increased to 59 Aviation Service Facilities (ASFs). The commissioning of new facilities at Dinjan Airforce Station in Tinsukia district, Assam, and at the civil airports of Solapur and Navi Mumbai in Maharashtra has enhanced reach, enabling the Corporation to service a wider spectrum of customers.
A key milestone was the Mechanical Completion of the Aviation Fuel Farm at the upcoming Visakhapatnam International Airport (Bhogapuram) in Andhra Pradesh. This greenfield airport, being developed near Visakhapatnam, is envisaged as a major domestic and international aviation hub. The fuel farm features modern storage and handling infrastructure with an integrated fuel hydrant system, supporting safe and efficient fuelling at the new airport. Its location on the eastern coast strengthens supply chain resilience for the region s growing aviation network.
© Read more on page 79 Natural Gas
CGD Network: During FY 2025-26, the CGD segment recorded total sales (CNG + PNG) of 149 TMT, reflecting robust growth of approximately 44% year-on-year. The year witnessed significant infrastructure expansion with commissioning of 3 new City Gate Stations (taking total to 14 CGSs), addition of 8 Mother Stations (total 24), 55 CNG stations (total 530) and 47,216 new domestic PNG connections. PNG penetration improved through onboarding of key industrial and institutional customers such as Uno Minda, Skipper Limited, IISER (Indian Institute of Science Education and Research) and Banglar Dairy, contributing to higher network utilisation. Operational efficiency was further strengthened through initiatives like Project Samriddhi and enhancement of own compression levels to 98%.
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Sourcing and Marketing: The Gas Sourcing and Marketing Group strengthened supply security through a balanced portfolio of long- and mid-term sourcing arrangements, complemented by calibrated spot procurements. Term LNG contracts were secured to ensure supply continuity for captive consumption (CGD and refinery operations) and to provide base-load support for the newly commissioned Chhara LNG regasification terminal. These arrangements supported price stability for industrial customers and optimised the supply mix alongside the domestic gas portfolio.
The team deepened long-term tie-ups with a diverse set of downstream customers, including large industrial consumers, CGD entities, Refineries and the LNG transport segment, facilitating demand aggregation and improved offtake visibility.
Market credibility was further reinforced by receiving the Indian Gas Exchange (IGX) Diversified Member of the Year 2026 award, reflecting active participation across multiple gas market instruments. During the year, an MoU was entered with IGX for listing spare LNG storage capacity slots (both quantity- and period-based), enhancing commercial flexibility and secondary market participation.
In alignment with the MoPNG s thrust on adoption of LNG as transport fuel, the team also commissioned 2 new LNG retail stations (taking the total to 3), thereby strengthening LNG fuel availability for long-haul and heavy-duty transport.
The operating environment towards the close of the financial year was marked by heightened geopolitical uncertainties, including supply chain disruptions along critical shipping routes such as the Strait of Hormuz; these risks were proactively managed through flexible contractual structures and prudent inventory management.
This integrated sourcing-to-marketing approach, supported by prudent gas flow management and mitigated exposure to short-term market volatility, positioned the business strongly to support customer acquisitions while maintaining competitiveness and margin discipline in a dynamic gas market. As a result, the Natural Gas SBU achieved total sales growth of 25% over historical levels and successfully executed term sales agreements with tenures ranging from 6 months to 60 months.
Petrochemicals
Ahead of HRRL s 2.4 MMTPA petrochemical capacity coming on stream, HPCL continued to strengthen its polymer brand HP Durapol during FY 2025-26 through marketing of HDPE, LLDPE and PP grades in strategic markets. Sales reached 107.45 TMT of polymers across key markets. HPCL participated in national and state-level exhibitions, seminars and conferences, and undertook initiatives to build supply-chain and channel-partner readiness for the upcoming petrochemical volumes.
To develop the petrochemicals ecosystem around the HRRL refinery, HPCL organised an investors meet in Jodhpur for petrochemicals downstream development. The event was graced by the District Collectors of Balotra and Jodhpur, senior officials of HPCL, HRRL, and RIICO (Rajasthan State Industrial Development & Investment Corporation), and witnessed enthusiastic participation from potential investors. The company also marketed various specialty chemicals, developed by HP Green R&D Centre, for use in refineries and pipelines.
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Supplies, Operations & Distribution
In FY 2025-26, HPCL s supply and distribution network strengthened its position through enhanced operational efficiency and sustainability initiatives, ensuring resilient and optimised movement of products across the country.
HPCL achieved a record throughput of 63.9 MMT, up 4.4% year-on-year, supported by its network of 80 terminals and depots and improved operational controls. Sustainability initiatives included 1.87 MWp of new solar capacity (total installed 13.47 MWp, meeting nearly 25% of POL energy requirements). HPCL achieved an ethanol blending rate of 19.94%, equivalent to a reduction of approximately 58 lakh MT CO 2 e in GHG emissions.
Supply optimisation during the year included nil imports of MS/HSD, strategic sourcing from domestic refineries, cost-takeout initiatives, and enhanced coastal and rail movements, improving logistics efficiency and supply chain resilience.
© Read more on page 82 Pipelines
HPCL s Pipelines business recorded annual throughput of 25.54 MMT across its 5,440 km network during FY 202526, supported by sustained operational efficiency and network reliability.
Several strategic projects were successfully commissioned during the year, significantly strengthening evacuation capabilities and supply chain resilience. The 90 km Bhatinda-Sangrur Multiproduct Pipeline (BSPL) was commissioned, enhancing evacuation of white oil products from Guru Gobind Singh Refinery (HMEL) at Ramanmandi. The 216 km Barmer-Palanpur Multiproduct Pipeline (BPPL) was commissioned with HSD pumped to enable the commissioning of HRRL.
The Crude Oil Terminal at Mundra was commissioned with 12 tanks (total capacity 720 TKL). The first crude vessel MT Advantage Summer (Azeri crude) was unloaded, and vessel loading facilities were commissioned with the first dispatch through MT Desh Gaurav (approximately 141 TMT). The 493 km AMPL crude pipeline from Mundra to HRRL Refinery, Pachpadra, and the 74 km MCPL crude pipeline from Cairn Barmer to HRRL were also commissioned.
HPCL became the first OMC to pump low-RON MS (RON 89) across VVSPL, MPSPL and MDPL.
On the expansion front, the 201 km Haldia-Panagarh LPG Pipeline is nearing completion to serve LPG demand in West Bengal, Bihar and Jharkhand. The 540 km Visakh-Raipur Pipeline is progressing across Andhra Pradesh, Odisha and Chhattisgarh to strengthen product evacuation from Visakh Refinery and regional rail/road supply logistics. The Pipelines SBU delivered 42,204 person-hours of training to officers and contract workmen during the year.
Under the SAFE-100 campaign, the Pipelines SBU completed Self-Safety Audits and MDSA at all 49 locations, Electrical Safety Audits at 32 HT locations, calibration of Pipeline Intrusion Detection System (PIDS) and Leak Detection System (LDS) across all locations, and issuance of Safety Assurance Certificates at all locations, with corrective measures implemented where gaps were identified.
© Read more on page 83 Engineering and Projects
During FY 2025-26, the Engineering & Projects (E&P) department continued to drive significant infrastructure developments for HPCL, focusing on enhancing the company s marketing capabilities and overall operational efficiency, while further expanding its logistical footprint.
Major milestones in marketing infrastructure include the mechanical completion of projects such as the Bhogapuram Aviation Fuel Tank Farm Facility (AFFF) Project, the Jaipur Terminal Augmentation Project, and the Petrochemicals Evacuation Marketing Terminal (PEMT) with liquid petrochemicals loading facility and the POL TT Gantry at Pachpadra. The department also modernised administrative environments and secured essential regulatory approvals.
HSE and professional development remained a priority. The National Safety Council conducted external safety audits at major project sites, and the department provided specialised Construction Safety training for its officers.
Various other learning and development programmes were conducted, including leveraging in-house expertise for technical knowledge upgradation and programmes to strengthen the team s project management capabilities. Looking forward, the department is managing a robust pipeline of ongoing and upcoming projects.
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Innovative Projects Undertaken
Demo CO 2 Capture HiGAS Unit at Visakh Refinery
The CO 2 Capture HiGAS Demonstration Unit was also undertaken and completed using indigenously developed HP-HiGAS process technology for removal of carbon dioxide from a portion of PSA feed gas. The unit, having a capacity of 7800 Nm 3 / hr (4330 Kg/hr), utilises Monoethanolamine (MEA 25 wt.%) and has a CO 2 capture capacity of 3 Tonnes/hour (24 KTPA), demonstrating HPCL s focus on clean energy and decarbonisation technologies. Expenditure of Rs.13 crore and Rs.15 crore was incurred during FY 2024-25 and FY 2025-26 respectively.
HMB Facility at VR
The project envisages setting up of a 200 KTPA (25 TPH) High Modulus Bitumen (HMB) facility for valorisation of low- value RUF pitch through blending with short residue, thereby enhancing product value realisation and supporting infrastructure-grade bitumen production. Expenditure of Rs.7.5 crore and Rs.34 crore was incurred during FY 2024-25 and FY 2025-26 respectively towards implementation of the project.
Closed Loop RTO in FR, FRE, FCCUs for MR
The project for design, development, and maintenance of closed-loop Real Time Optimisation (RTO) models was undertaken for process optimisation of FR, FRE, NFCC, and OFCC units at Mumbai Refinery at a project cost of Rs.19.4 crore. The initiative aims to enhance operational efficiency, optimise energy utilisation, and improve refinery performance through advanced digital process optimisation techniques. Expenditure of n.17 crore and Rs.6.72 crore was incurred during FY 2024-25 and FY 2025-26 respectively.
G. RESEARCH AND DEVELOPMENT
The HP Green R&D Centre (HPGRDC) continued to drive innovation and sustainability across business verticals. The centre occupies 5.6 lakh square feet of energy- efficient green buildings and houses 24 laboratories established under Phase I and Phase II. Research areas span FCC, hydroprocessing, catalysis, bio-processes, crude evaluation and fuels research, analytical and standard testing, process modelling and simulation, nanotechnology, petrochemicals and polymers, lubes (Centre of Excellence), corrosion studies, novel separations, residue upgradation, engines, battery research, hydrogen, bitumen, water research and a global technology centre. During the year, HPGRDC filed 118 patents, taking cumulative Indian and international patent applications to 779; 66 patents were granted, taking total granted patents to 312.
HPGRDC continued to develop decarbonisation and net- zero technologies during the year. HP NOVA, a catalytic naphtha cracking process, produces olefins with a lower CO 2 footprint than conventional steam cracking. AEME Technology (Anion Exchange Membrane Electrolyser) supports efficient green hydrogen production from water, and Blue Hydrogen Technology has been implemented for carbon capture at Visakh Refinery. A 25 KTPA TDAE plant is being set up at Mumbai Refinery to convert lube oil extract to low-PCA rubber processing oil. HP-COAT (Crude to Olefins and Aromatics Technology) is a proprietary HPCL technology that converts crude oil to chemicals in a single step using in-house hardware and catalyst, producing over 45 wt% petrochemical feedstock from crude.
Several projects support HPCL s circular-economy goals. HP-TriJet Technology, a hydroprocessing route that converts Used Cooking Oil (UCO) into Sustainable Aviation Fuel (SAF), has been established at lab and pilot scale; BDEP studies are complete and detailed engineering is in progress for a 7.4 KTPA demonstration unit at Visakh Refinery.
HPCL is also pursuing conversion of biomass (agricultural, forest and wood residues) into biofuels including CBG, bioethanol, biodiesel and SAF. HP-RAMP Technology supports CBG production and HP-ASAP Technology supports 2G ethanol production from biomass. Hydrothermal Liquefaction Technology, a thermochemical conversion process for producing biodiesel and SAF from biomass, is under development. HPCL and Sea6 Energy Private Limited signed a Memorandum of Understanding (MoU) for joint research and demonstration in biofuels and biochemicals through valorisation of seaweed biomass.
Key R&D Projects undertaken HP HTL Pilot Plant
HPGRDC undertook an R&D project on catalytic Hydrothermal Liquefaction (HTL) of biomass for conversion of agricultural residue, municipal waste and food waste into fuels. Based on successful lab-scale studies, a continuous pilot plant was developed for generation and characterization of HTL crude and co-processing studies. Approx. Rs.7.6 crore has been incurred on this project. This project shall emerge as development of waste-to-fuel technologies.
SOFC Multi Stack Test Bench
HPGRDC established a Multi Stack Test Bench facility for testing and evaluation of indigenously developed Solid Oxide Fuel Cell (SOFC) and Solid Oxide Electrolytic Cell (SOEC) stacks. The project cost Rs.8.70 crore shall support research in clean energy and energy transition technologies by enabling system-level integration and performance evaluation studies. Expenditure of Rs.0.26 crore and Rs.7.23 crore was incurred during FY 2024-25 and FY 2025-26 respectively.
Gas Phase Polymerization Reactor
HPGRDC set up a Gas Phase Polymerization Reactor to support indigenous catalyst development for ethylene, propylene and co-polymerization processes. The facility enables catalyst screening, kinetics studies and polymer property evaluation for development of various polyethylene grades targeted for commercial production at HRRL. Approx. Rs.7.63 crore has been incurred on this project.
Sulphur Additive and Pitch Pelletizer Facility
HPGRDC established a Sulphur Additive and Pitch Pelletizer Facility for development of value-added sulphur modified bitumen and modified pitch products for pavement applications. The facility also simulates the pitch flaker system envisaged under VRMP and supports development of advanced road construction materials. Approx. Rs.7.56 crore has been incurred on this project.
Tribo Test Rig - FZG
HPGRDC established an FZG Tribology Test Rig facility for evaluation of lubricants, greases and specialty fluids as per ASTM standards. The facility supports performance testing related to lubricity, wear protection and load carrying capacity for applications across industries, OEMs, defence and railways. Expenditure of Rs.0.71 crore and Rs.5.08 crore was incurred during FY 2024-25 and FY 2025-26 respectively.
Facilities for Green Hydrogen Generation and Utilisation
HPGRDC established facilities including a spiral wind turbine, solar PV system, hydrogen electrolyser and SOEC system for generation and utilisation of green hydrogen. The project enables studies on renewable integration, hydrogen production and clean energy systems to support energy transition initiatives. Expenditure of Rs.4.30 crore has been incurred on this project.
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H. CENTRAL PROCUREMENT
HPCL s Central Procurement Organisation (CPO) continued to deliver efficient and transparent procurement in FY 2025-26, in line with government guidelines on strengthening the MSME ecosystem and promoting indigenisation.
The Corporation strictly adhered to the payment timelines stipulated under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. No bills were pending or paid beyond the prescribed timelines during the year. Throughout the year, the Company processed 1,55,590 MSE invoices and engaged 6,162 MSE vendors for procurement.
In FY 2025-26, HPCL continued to strengthen its supplier base through focused procurement from Micro and Small Enterprises (MSEs). Of total HPCL procurement of Rs.11,238.99 crore, goods and services worth Rs.6,678.50 crore (59.42%) were sourced from MSEs, including Rs. 573.20 crore (5.10%) from SC/ST-owned MSEs and Rs.483.81 crore (4.30%) from women-owned MSEs.
Digital procurement platforms processed goods worth Rs.5,988.26 crore through the GeM portal during the year. Over Rs.2,697 crore in transactions were discounted across all five (5) TReDS (Trade Receivables Discounting System) platforms, supporting 5,560 onboarded vendors. The Corporation was onboarded onto the five TReDS platforms as follows: Invoice Mart on 16 October 2018, Mlxchange on 16 November 2018, RXIL on 10 May 2019, C2treds on 26 November 2024, and DTX on 24 March 2025. Further digital initiatives launched during the year include:
• Enabled Bulk LPG Transportation Tender publishing and the Truck Evaluation module through the e-Procurement application, along with e-LOA generation for transportation tenders floated on the e-Procurement portal.
• Launched an online vendor performance evaluation system.
• Launched an Agentic AI-based tender evaluation portal for financial PQC and commercial evaluation.
• Enabled auto-generated reminder emails to vendors for participation in limited tenders.
I. QUALITY ASSURANCE
In line with the 2005 directive of the Ministry of Petroleum and Natural Gas (MoPNG) to OMCs, HPCL operates a dedicated Quality Assurance (QA) cell, with officers posted across all zones and reporting independently of the Refining and Marketing functions to preserve objectivity. The cell conducts structured and surprise inspections at customerfacing and operational locations, including retail outlets, LPG distributorships, kerosene (PDS) resellers and LPG plants, in line with the Marketing Discipline Guidelines (MDG) and HQO directives.
During FY 2025-26, the QA cell carried out surprise inspections at 3,533 retail outlets, 937 LPG distributorships and 13 LPG plants and depots, with repeat inspections at 235 retail outlets and 61 LPG distributorships under the Marketing Discipline Guidelines (MDG). The QA framework, comprising surprise inspections, structured feedback mechanisms and system-driven monitoring, has strengthened process adherence and improved customer experience.
J. INFORMATION TECHNOLOGY AND DIGITAL INITIATIVES
Information Systems and ERP
HPCL continued to strengthen its Information Systems and ERP landscape during the year, with focus on rationalising and modernising the enterprise application ecosystem and phasing out legacy systems. Key initiatives included SAP- integrated platforms for utility and statutory payments, automation of toll reimbursement using FASTag and GPS, and digitisation of credit-note processing, which improved accuracy and transparency and reduced manual effort.
ERP capabilities were extended across subsidiaries and joint ventures, with SAP S/4HANA implemented at HPCL LNG Limited (HPLNG) and HRRL. Integration with industry systems, including the Industry Ethanol Management System (IEMS), enabled real-time transactions with key stakeholders. Advanced analytics, AI/ML and Robotic Process Automation, alongside enterprise dashboards, supported data-driven decision-making across functions.
Governance, compliance and resilience were strengthened through Digi-GST for e-Invoicing and e-Way Bill processes, tighter role-based access controls and segregation of duties, and digital HSE audit systems. System-driven controls were embedded in critical business processes. Digital initiatives in supply chain and logistics, including eLOA, standardised evaluation models and smart warehouse solutions, improved operational efficiency. Disaster Recovery drills and validation of Business Continuity Plans reinforced business continuity.
Digital Initiatives: Marketing
HPCL continued to accelerate its digital transformation through a digital-first, data-driven, and customer-centric approach. AI-based video analytics has been leveraged to enhance safety and SOP compliance at locations and customer service at retail outlets. Hyperlocal search marketing has been scaled across all outlets, facilitating easy online near me searches for customers, and online feedback is helping to improve customer service standards.
The year saw accelerated digital adoption in LPG services, leveraging chatbot-led interactions, MarTech-led customer engagement, and the new-look HP Pay app, processing millions of transactions seamlessly. HP Pay has been enhanced with a new UI and value-added services, resulting in a two-fold increase in the active customer base and associated revenue. The year also saw a number of conveniences added. Going forward, the focus will be on enabling convenient payments for customers, in line with the motto of Conveniences Multiplied, Payments Simplified .
The company has significantly strengthened its Digital Nerve Centre with real-time enterprise dashboards and automated reporting, enabling enhanced visibility, governance, and decision-making across business verticals. Governance of operational activities at locations through the Novex platform has enhanced productivity and efficiency.
A number of digital projects have been implemented across areas such as CRM, energy management, and track and trace, to improve transparency, compliance and operational efficiency. HPCL was recognised with the ET MarTech+ Award, SKOCH Award, and ACEF Gold Award for excellence in digital initiatives.
Digital Initiatives: Refineries
HPCL s digital-first refinery vision is structured around four strategic focus areas:
• Process Optimisation
• Reliability Improvement
• Safety
• Democratisation of Technology
HPCL has made significant progress in applying digital technologies across refining operations. AI/ML, advanced analytics, real-time optimisation, immersive training platforms and automated inspection systems are transforming how refinery assets are monitored, operated and maintained. These initiatives are aligned with the Corporation s long-term objectives of operational excellence, sustainability, safety and value creation for stakeholders.
Key Digital Initiatives and Achievements:
Real Time Optimiser (RTO) commissioned in four CDUs and four FCCUs across Mumbai Refinery (MR) and Visakh Refinery (VR). RTO implementation in CDU-4 at Visakh Refinery and the MS block at both refineries is nearing completion.
Advanced Process Control (APC) commissioned in all VRMP units (CDU-4, FCHCU, VRMP HGUs, DHT-DHT HGU, VRMP-NIU).
AI/ML based prediction models:
• Soft Sensors for Real-Time Quality Prediction: More than 30 ML-based soft sensors developed during the year, taking the cumulative count to 68. These models predict important quality parameters in real time, enabling engineers to make timely operational adjustments.
• Predictive Analytics-Based Maintenance: In
collaboration with leading technology partners, HPCL has deployed predictive maintenance models for critical machines/equipment. These models predict degradation patterns and potential failures using ML- driven diagnostics.
• Process Anomaly Detection System (PADS): Rolled out for all process units at both refineries to identify process anomalies. OEMS-2 (Operating Envelope Management System) rolled out for all major units at both refineries.
• IoT based sensors: More than 175 advanced linethickness and rotary-equipment vibration monitoring systems installed across various units at HPCL refineries.
K. HEALTH, SAFETY, ENVIRONMENT & SUSTAINABILITY
Health, Safety, Environment (HSE) and Sustainability are core to HPCL s corporate strategy and operational excellence. The Corporation continues to strengthen its safety culture and sustainability framework, integrating risk management, environmental stewardship and social responsibility across business operations.
A structured, data-driven approach now underpins process safety, occupational health and environmental performance monitoring. HPCL is progressively digitalising HSE and sustainability management systems, enabling real-time monitoring, compliance assurance, predictive risk analytics and standardisation of practices across business units.
Capability building remains a priority across the workforce, with focused attention on frontline personnel. The Corporation s efforts target hazard identification, safety culture and accountability at all levels of the organisation, supporting consistent improvement in safety and sustainability performance.
HPCL s Environmental, Social and Governance (ESG) framework supports transparent disclosures, regulatory alignment and continuous performance improvement. The Corporation benchmarks its performance against global and industry peers, with international ESG ratings improving notably during the year.
Health
HPCL is committed to the occupational health and well-being of its employees through a comprehensive framework that encompasses both preventive healthcare and the promotion of a healthy lifestyle.
The framework provides preventive and curative services. Periodic Medical Examinations (PMEs) are conducted, with analysis by qualified professionals enabling timely medical interventions. HPCL has partnered with specialised agencies to provide consistent, high-quality medical services and Occupational Health Services Centres (OHSC) across locations, including remote sites. The Corporation also conducts health awareness programmes, diagnostic camps and fitness activities such as corporate marathons and sports events.
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Safety initiatives during the year focused on strengthening organisational capability, improving risk management and embedding a safety culture across all operations.
HPCL signed a two-year agreement with the Institute of Fire Safety and Disaster Management Studies (IFSDMS), Vadodara, for three-day residential Live Fire Training Programmes for officers through March 2028. Alongside the existing arrangement with the Advanced Training Institute, this has strengthened hands-on emergency response and preparedness for fire and disaster scenarios.
In FY 2025-26, HPCL delivered over 11,752 safety training person-days (against the MoPNG target of 7,600), using immersive AR/VR modules and metaverse-based platforms to reinforce safety competencies. Enterprise-wide deployment of digital safety systems, including Work Permit and Incident Management platforms, has enabled real-time monitoring, compliance assurance and data-driven decision-making. Competency assurance was strengthened through structured assessments, including the National Safety Aptitude Test (NSAT) for field officers (conducted by the National Safety Council of India) and technical competency evaluations for frontline personnel.
HPCL launched SAFE 100, a 100-day organisation-wide safety drive to accelerate cultural change and reinforce operational discipline. The initiative emphasised targeted interventions in high-risk areas, stronger audit and assurance mechanisms, and active leadership engagement. All locations completed self-safety audits followed by cross-functional peer reviews, and subsequently self-certified safety compliance, reinforcing ownership and accountability at the operational level.
Visible Felt Leadership (VFL) initiatives drew active participation from senior management through site engagements, safety reviews and direct workforce interaction, driving behavioural change, strengthening risk awareness and sustaining momentum towards a resilient and proactive safety culture.
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Environment
HPCL has adopted Environmental Management Systems (EMS) across major installations, supported by periodic internal and external audits to maintain regulatory compliance and continuous improvement in environmental performance.
Water conservation and resource efficiency remain key focus areas. Integrated Effluent Treatment Plants (IETPs) operate at both refineries, supporting treatment, recycling and reuse of water, reducing dependence on fresh water and improving sustainable water management.
HPCL has implemented advanced technologies to monitor and control emissions, including Volatile Organic Compound (VOC) monitoring systems and Leak Detection and Repair (LDAR) programmes, with real-time data transmission to regulatory authorities such as CPCB and SPCB. Automated alerts trigger prompt corrective action. Vapour Recovery Systems (VRS) have been deployed across key supply locations and retail outlets to minimise hydrocarbon emissions.
HPCL is advancing its circular-economy approach through waste-to-resource initiatives. At Mumbai Refinery, the renewed Consent to Operate covers pre-processing and co-processing of hazardous waste, an environmentally preferable alternative to conventional disposal. At Visakh Refinery, in collaboration with the Andhra Pradesh Pollution Control Board, spent resin disposal has shifted from incineration to co-processing, reducing environmental impact and disposal costs.
In line with its decarbonisation roadmap, Visakh Refinery has obtained Nil Increase in Pollution Load (NIPL) certification and Consent for Establishment for a CO 2 capture pilot plant. Pre-commissioning activities are underway.
HPCL also promotes environmental awareness and biodiversity conservation. On World Environment Day 2025, the Corporation planted over 95,600 trees. Biodiversity efforts also include adoption of wildlife species, including Red Pandas at the Himalayan Zoological Park, Gangtok, and Tigers at Sanjay Gandhi National Park, Mumbai.
© Read more on page 128 Sustainable Development
HPCL continues to advance its sustainable development agenda through an integrated Environmental, Social and Governance (ESG) approach aligned with national priorities and global sustainability frameworks. The Corporation s focus areas are decarbonisation, clean energy transition, resource efficiency and responsible governance, alongside strengthening stakeholder trust and long-term value creation.
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Environment: Advancing Energy Transition and Resource Efficiency
HPCL made significant progress in expanding its clean- energy footprint and improving operational efficiency during the year. Wind power generation reached 16.10 crore kWh in FY 2025-26, contributing to the Corporation s low-carbon energy mix. HPCL also commissioned a 1.2 MW floating solar power plant on a water reservoir at Visakh Refinery, optimising land and water resource use.
The Corporation continued to scale up its clean-mobility infrastructure across alternative fuel segments. As of 31 March 2026, HPCL operates 2,253 CNG retail outlets and 5,379 EV charging stations across 4,891 retail outlets and has commissioned 154 Battery Swapping Stations (BSS). Of these, 112 are at retail outlets and 42 at public parking locations established with urban local bodies including the Municipal Corporation of Delhi, NOIDA Authority and Bangalore Municipal Corporation, alongside Honda Power Pack Energy India Pvt. Ltd.
Energy efficiency improvements continued across the refineries. At Mumbai Refinery, energy conservation initiatives saved 43,676 SRFT, translating to approximately Rs.174.7 crore and an annual reduction of around 0.14 MMT CO 2 equivalent. Visakh Refinery saved 42,866 SRFT, equivalent to approximately Rs.175.4 crore and a comparable reduction of around 0.14 MMT CO 2 equivalent annually.
In the area of innovation and circularity, a Hydrothermal Liquefaction (HTL) pilot plant was commissioned at HPGRDC for conversion of seaweed into bio-crude and value-added products. Additionally, HPCL achieved a key milestone by successfully producing Sustainable Aviation Fuel (SAF) from Used Cooking Oil (UCO) at the Visakh Refinery, including coprocessing with refinery streams, demonstrating progress towards sustainable fuel alternatives.
The Company further strengthened its circular economy initiatives through strategic collaborations with UltraTech Cement Ltd for used oil co-processing and with Castrol India Ltd. for advancing recycling infrastructure and utilisation of re-refined base oil (RRBO) in lubricant applications.
Social: Strengthening Workforce Stability and Engagement
HPCL continues to foster a stable, inclusive workplace, with emphasis on employee engagement, capability development and well-being. Voluntary attrition was 2.75% during the year, reflecting workforce stability and sustained commitment. Ongoing initiatives in skill development, occupational safety, diversity and inclusion, and organisational culture support productivity and long-term human capital development, in line with BRSR principles on employee well-being and inclusive growth.
HPCL contributes to community development through Corporate Social Responsibility (CSR) interventions aligned with Schedule VII of the Companies Act, 2013. During FY 2025-26, the Corporation undertook CSR initiatives against a prescribed obligation of Rs.104.04 crore (based on average net profits over the preceding three financial years). After accounting for the eligible set-off of Rs.6.99 crore, the Corporations net CSR obligation for FY 2025-26 was Rs.97.05 crore, which the Corporation met.
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Governance: Driving Transparency, Accountability and Ethical Conduct
HPCL maintains a governance framework anchored in transparency, ethical practices and regulatory compliance. As of 31 March 2026, the Board s attendance level was 98.3%, supporting effective supervision and strategic guidance.
HPCL formalised and disclosed key policies during the year, including the Corporate Tax Policy and the Anti-Bribery and Anti-Corruption (ABAC) Policy, reinforcing commitment to ethical conduct, regulatory alignment and stakeholder trust across the value chain.
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ESG Performance and Recognition
HPCL s sustained focus on ESG performance is reflected in its ratings from leading agencies, including CDP (Management band), S&P Global (Average), and CRISIL (Adequate). The Company continues to maintain a competitive position among Oil & Gas Public Sector Undertakings, as assessed by SEBI- registered ESG rating providers such as NSE Sustainability Ratings & Analytics (Aspiring category, highest among Oil Marketing Companies) and SES ESG Research Pvt. Ltd.
Renewable Energy
HPCL s wind power assets generated 16.10 crore kWh and earned Rs.70.06 crore in revenue. Wind farms operated at 96.19% uptime during the year.
The Tejuva Wind Farm, which received the sector s first open access clearance, enabling an additional revenue stream through the sale of green power on the IEX platform, sold 10.29 crore kWh during the year and generated Rs.45.05 crore in revenue through IEX transactions. These wind power initiatives mitigated an estimated 0.132 MMT of CO 2 emissions.
HPCL Renewable and Green Energy Ltd (HPRGE), incorporated in 2024 as a wholly owned subsidiary of HPCL, manages the Corporation s green-energy portfolio across biofuels, renewables, green hydrogen, carbon offsets, green mobility and alternative energy. During the year, HPRGE commissioned a 1.5 MWp floating solar project at Visakhapatnam, a 5.6 MWp agri-solar project in Delhi and rooftop solar installations totalling 0.74 MWp, taking commissioned capacity to 7.84 MWp. HPRGE is implementing further renewable energy projects for captive greening of HPCL s marketing locations and refineries, with work in progress on its first mega-scale 140 MWp solar project at Galiveedu, Andhra Pradesh.
As on March 2026, HPCL has a total installed renewable capacity of about 240.5 MW, including solar plants across various marketing/operating locations, wind power plants, and solar projects commissioned by HPRGE.
© Read more on page 125 Biofuels
HPCL is building its bio-energy ecosystem, advancing projects in both ethanol and Compressed Biogas (CBG) while strengthening the value chain from production to byproduct use.
The HPCL 2G Ethanol Bio-Refinery at Bathinda achieved mechanical erection completion in March 2026. Commissioning activities are in progress, and the plant is expected to be operational between June and September 2026.
In the CBG segment, HPCL has commissioned two plants - at Budaun, Uttar Pradesh (paddy-straw based) and Pathmeda, Rajasthan (cattle-dung based) - and HPRGE has commenced construction at four additional sites during the year. HPCL supports the Government of India s SATAT initiative to promote Compressed Biogas (CBG) as an alternative transport fuel, and has invited Expressions of Interest (EOI) from investors to set up CBG plants and supply CBG to its retail network. During FY 2025-26, HPCL onboarded three new CBG plants, taking the total under the SATAT scheme to 18.
CBG sales reached a record 16.04 TMT during the year and HPCL sold 732 MT of organic manure from its Budaun CBG plant.
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L. GOVERNANCE
Corporate Governance
While a detailed Corporate Governance section appears separately in this Annual Report, the Corporation reaffirms its commitment to the highest standards of governance. HPCL s practices align with the Companies Act, 2013, SEBI (LODR) Regulations and the guidelines for Central Public Sector Enterprises issued by the Department of Public Enterprises, covering regulatory compliance, transparent management processes and adherence to internal and external ethical norms. To further strengthen stakeholder trust, the Corporation has established a robust grievance redressal mechanism.
Internal Control Processes
The Internal Audit Department provides independent and objective assurance on the adequacy and operating effectiveness of internal control processes across HPCL. The department personnel from finance, technical and IT functions evaluate financial, operational, compliance and IT controls to safeguard assets, ensure the reliability and integrity of financial and management information, and support efficient conduct of business operations.
The Internal Audit Department also assesses whether internal control processes are appropriately designed and consistently applied in accordance with applicable laws, regulations, government directives, internal policies, and delegated authorities, and recommends improvements to address control gaps, strengthen accountability, and enhance process efficiency.
Internal audits are conducted in line with the Annual Audit Plan approved by the Audit Committee of the Board, covering the implementation of business processes and control systems. The Audit Committee periodically reviews significant audit observations to ensure that identified gaps are addressed promptly.
Risk Management
HPCL employs a hybrid bottom-up and top-down methodology for comprehensive risk identification and assessment. This process is enabled by an advanced digital platform aligned with our Enterprise Risk Management Framework, enabling real-time monitoring and proactive identification of triggers, reducing reactive responses and strengthening organisational resilience.
Corporate risk governance is led by the Risk Management Committee (RMC), which ensures a framework is in place to address key risk areas including financial, operational, ESG and cyber risks. The RMC reviews risk registers, monitors the effectiveness of controls and mitigation measures, and provides periodic updates to the Board of Directors.
Integrity Pact
HPCL upholds its commitment to ethics and transparency through the Integrity Pact, adopted via a Memorandum of Understanding (MoU) with Transparency International effective 1 September 2007. The Pact forms part of HPCL s procurement process for all tenders or contracts valued at Rs.1 crore and above. The Corporation has fully complied with the provisions of the Pact.
Right to Information (RTI)
As a CPSE, HPCL is obligated to comply with the Right to Information Act, 2005, and uses the Department of Personnel and Training (DoPT) Online RTI portal under the Ministry of Personnel, Public Grievances and Pensions as its central platform to process applications and appeals, whether submitted online or offline.
HPCL submits all mandatory reports, including quarterly and annual disclosures, to the Central Information Commission ) within stipulated timelines. The Corporation regularly updates and publishes suo-motu disclosures on its official website ( ), ensuring transparency and public accessibility.
HPCL maintains a robust framework for managing its Right to Information (RTI) obligations, led by a designated Nodal Officer at Corporate Headquarters to ensure timely and compliant responses through the online portal ).
The framework is managed by a team of 216 Central Public Information Officers (CPIOs) and 48 First Appellate Authorities (FAAs), drawn from Regional Managers, Department Heads and senior executives across key business verticals. During FY 2025-26, the team handled 3,474 RTI applications, 564 First Appeals and 64 Second Appeals. Written Submissions to the Central Information Commission achieved a 92% success rate in awards passed in HPCL s favour, validating the Corporation s commitment to transparency.
Vigilance
HPCL s vigilance framework adheres to guidelines from the Central Vigilance Commission (CVC), the Department of Personnel and Training (DoPT) and the Ministry of Petroleum and Natural Gas (MoPNG). All vigilance complaints are investigated in accordance with the CVC s Vigilance Manual and resolved through structured procedures.
HPCL fosters a culture of proactive vigilance by strengthening internal capabilities through training and sensitisation programmes. Preventive vigilance initiatives include surprise and regular inspections, system and process reviews, and periodic interactions with employees, stakeholders and the public. Based on case investigations and process reviews, the Vigilance Department provides inputs to management for systemic improvements to transparency and control.
HPCL extends this culture of integrity through awareness campaigns in schools and colleges, publication of vigilance literature such as JAGARAN and SAJAG, and regular sharing of case studies and best practices. HPCL also observes Vigilance Awareness Week annually in line with CVC directives. The theme for 2025, Vigilance: Our Shared Responsibility , underscored that integrity, transparency and accountability are not the responsibility of a select few but are to be upheld collectively across the organisation.
M. HUMAN RESOURCE MANAGEMENT
HPCL s human resource initiatives focus on building a strong talent pipeline and creating an agile, inclusive and future-ready workforce. The Corporation is also nurturing a performance-oriented culture aligned with business strategy. Several initiatives target employee well-being and higher engagement at the workplace.
HPCL has a Board-approved succession planning and leadership development framework that supports a strong and structured internal process, ensuring a sustained leadership pipeline aligned with the Corporation s strategic objectives.
HPCL onboarded 903 new officers during the year, the highest intake in its history. The new officers specialise in Engineering, Sales, City Gas Distribution, R&D, Finance, HR and Information Systems. The Corporation also expanded its brand presence among students through the Master Class series and Power Lab 2.0 programme. HPCL s senior leaders interacted directly with over 6,200 students through Master Class sessions, and Power Lab 2.0 reached over 1.3 lakh participants across premier institutes including IITs and IIMs.
The Capability Building Department continued to drive impactful, inclusive and technology-enabled learning. During FY 2025-26, over 74,268 person-days of training were delivered through blended learning modes (classroom, online and e-learning). Key digital initiatives included a Capability Building Intelligence Dashboard integrating training data across all SBUs and Departments to enable data-driven planning of training programmes. The HP NEO microlearning app, launched in 2025, has been adopted by over 2,200 officers. Leadership development remained a focus through HP NAVA 2.0 (117 officers, 6,320 hours, in collaboration with premier institutes), HP Yuva 2.0 (119 participants, Al-focused learning with global partners) and the DAKSH programme by the Capability Building Commission (CBC), a 12-month leadership journey for Senior Management. Safety capability building was strengthened with 1,509 NSC certifications (2,948 cumulative to date), 120 NEBOSH certifications and Live Fire Training for 132 officers. Against a target of 1,300 interns under PM Internship Scheme, 1,303 opportunities were posted, drawing 6,030 applications, of which 2,697 were selected. Officers also participated in global forums including India Energy Week and ADIPEC 2025.
In FY 2025-26, the focus of Performance Management shifted towards strengthening capability, transparency and career alignment. A more structured promotion framework was operationalised with defined eligibility criteria and multi-dimensional assessments across levels. The Career Development and Transfer Policy was implemented to institutionalise structured exposure to different functions and enhance mobility and versatility across functions and geographies, strengthening workforce resilience and the leadership pipeline. Emphasis was also placed on improving the quality of performance conversations and the alignment of individual goals with organisational priorities. HPCL continued to recognise and reward high-performing employees through the HP Outstanding Achievers and HP Gaurav Awards.
HPCL maintains cordial and productive relationships with employee unions. Continual dialogue, effective grievance management, fairness and transparency have aligned unions and employees with the Corporation s vision, sustaining harmonious industrial relations across the workforce. During the year, a landmark tripartite settlement under Section 18(3) of the Industrial Disputes Act, 1947 was signed on 17 May 2025 between Management and the operating unions of Visakh Refinery, adopting a uniform operating cadre for the refinery s technical workforce. During the year, modified childcare leave was introduced to promote gender diversity, recognising the professional role of female employees alongside their childcare responsibilities.
The Anti-Bribery and Anti-Corruption (ABAC) Policy (see Governance) extends to both employees and business partners, promoting a culture of integrity and accountability across the organisation.
Employee Health and Wellness Department initiatives focus on a healthy work environment and on employees physical, emotional, mental and social well-being. The Health and Wellness Policy provides holistic, standardised programmes covering the work environment, psychosocial work environment, employee experience and engagement, and enterprise community involvement, aligned with the World Health Organisation (WHO) Healthy Workplace Framework. A Health Index has been developed for all employees, drawing on data from Periodic Medical Examinations.
During the year, HPCL s Corporate Communication team strengthened brand visibility through a focused, milestone- led approach. A key highlight was the integrated campaign during the RUF commissioning at Visakh Refinery, complemented by leadership engagements with media and journalists. Quarterly hybrid town hall sessions improved employee connect and organisational alignment.
Online POSH workshops were conducted across the Corporation during the year to reinforce workplace behaviour standards and gender sensitisation.
HPCL s commitment to Official Language (OL) implementation is reflected in the Corporation s official communications. Hindi is promoted through the use of Information Technology tools and platforms. To develop employees linguistic skills, the Corporation conducts online Hindi competitions, Hindi Fortnights, Official Language Conferences and Hindi workshops. Team Rajbhasha provides timely Hindi translations of the annual report, key SBU communications and other important documents, and Rajbhasha officers anchor national festivals and other major programmes in Hindi. HPCL was conferred the Rajbhasha Keerti Puraskar for FY 2024-25 by the Ministry of Home Affairs.
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N. CORPORATE SOCIAL RESPONSIBILITY
CSR initiatives integrate business growth with meaningful social progress, focused on programmes that benefit communities around the Corporation s sites. During the year, HPCL fulfilled its net CSR obligation of Rs.97.05 crore through CSR expenditure of Rs.85.38 crore and transfer of Rs.11.67 crore to the Unspent CSR Account for approved ongoing projects in accordance with the Companies Act, 2013. The Corporation supported around 130 CSR activities and projects for local area development in the vicinity of its operating locations.
HPCL s CSR focus areas covered Child Care, Education, Healthcare, Skill Development, Sports, Environment and Community Development, contributions to Incubators for R&D projects in science, technology, engineering and medicine funded by the Central or State Government, Public Sector Undertakings or any agency thereof, and contributions to publicly funded Universities.
Under Project ADAPT , HPCL supported the educational, therapeutic and skill-training needs of Children with Special Needs (CwSN), improving quality of life and dailyliving activities.
Under Project Nanhi Kali , adolescent girls (mostly first- generation learners) received sports training and academic counselling sessions covering personal hygiene, life skills and career development.
HPCL provided scholarships to students from socioeconomically disadvantaged sections including SC, ST, OBC and PwD across the country, supporting their education from school through professional courses. The residential coaching and mentoring project Super-50, aimed at meeting the educational needs of aspiring SC and ST students, was also undertaken in Raigad district of Maharashtra.
HPCL extended its collaboration with the Indian Army for Project Super-50 in the Union Territories of Jammu and Kashmir and Ladakh. Under the project, aspiring students received mentoring and coaching for medical and engineering competitive exams. The project supports the Indian Army s Sadbhavana outreach to local communities. Results of students appearing through Project Super-50 across Srinagar, Rajouri, Leh, Kargil and Raigad have been encouraging.
Under Project Dhanwantari , HPCL operated mobile medical vans providing diagnosis, treatment and health awareness at the doorsteps of underserved communities in remote rural areas.
Under Project Dil without Bill, HPCL extended support for conducting heart surgeries for beneficiaries from the lower socio-economic section, with a special focus on children.
HPCL supported the Skill Development Institute (SDI) at Visakhapatnam, which was conceptualised by the Government of India and operationalised by Oil and Gas CPSEs and focuses on industry-oriented trades to improve the employability of weaker sections of society.
HPCL participated in the Swachhta Pakhwada campaign, a nationwide awareness movement on cleanliness and personal hygiene. The campaign reached around 20 lakh stakeholders across the country. Activities included administering the Cleanliness Pledge, street plays, walkathons, distribution of hygiene kits, cleaning of Cleanliness Target Units (CTUs), competitions in schools and colleges, distribution of seed balls and sapling plantation across HPCL s installations.
HPCL also provided scholarship assistance to promising athletes and sportspersons from underprivileged backgrounds. The Corporation contributed to the Armed Forces Flag Day Fund, instituted by the Kendriya Sainik Board (Ministry of Defence, Government of India), supporting care, welfare and rehabilitation schemes for ex-servicemen and their dependents.
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O. JOINT VENTURE COMPANIES AND SUBSIDIARIES
HPCL also conducts its business through various Subsidiaries and Joint Venture (JV) companies across diverse domains, including oil refining and petrochemicals, value-added bituminous products, marketing of petroleum products (POL), petroleum pipelines, natural gas pipelines, LPG pipelines, City Gas Distribution (CGD), LPG caverns, LNG terminals, aviation fuel farm facilities, biofuels and green energy. The brief about performance of subsidiaries and joint venture companies during the year 2025-26 is as given under:
HPCL-Mittal Energy Ltd (HMEL)
HPCL-Mittal Energy Limited (HMEL) is a joint venture between HPCL and Mittal Energy Investments Pte Ltd, Singapore, with each partner holding an equity stake of 48.99%. As one of India s leading integrated refining and petrochemical companies, HMEL owns and operates the 11.3 MMTPA Guru Gobind Singh Refinery (GGSR) in Bathinda, Punjab. The refinery houses a world-class petrochemical complex with a combined polymer capacity of 2.2 MMTPA, producing grades such as HDPE, LLDPE, and various PP grades. HMEL s integrated business model spanning refining, petrochemicals, logistics and emerging energy verticals underpins its strategy, enabling optimisation of product mix, operational efficiencies and margin resilience, while drawing strong synergies with HPCL in sourcing, infrastructure and market access.
In FY 2025-26, HMEL has recorded crude throughput of 11.92 MMT. Ethylene production reached 1,209 KT and propylene 579 KT, translating into utilisation of about 105% and 116% of design capacity respectively, while downstream polymer units recorded their highest-ever outputs, including 576 KT from PPU-II and robust production from PPU-I and 828 KT from swing units. This operational performance supported market outcomes, with polymer sales exceeding 2.27 MMT (polypropylene 1,079 KT and polyethylene 1,190 KT), registering growth of about 12% over the previous year.
Operational integration was further reinforced during the year through the amalgamation of HPCL-Mittal Pipelines Limited (HMPL) with HMEL, effective January 2026. Pipeline throughput reached 13.58 MMT, including 11.57 MMT of crude and 2.01 MMT of naphtha, operating at around 120% of nameplate capacity.
The company recorded a consolidated total revenue of Rs.95,447.20 crore and declared an interim dividend of 4% for the year. HMEL has been awarded with Golden Peacock Award for Excellence in Corporate Governance - 2025, along with awards for sustainability, safety, and innovation, reflecting balanced progress across operational, financial, and governance parameters.
South Asia LPG Company Pvt Ltd (SALPG)
SALPG, a joint venture between HPCL and Total Energies Marketing Holdings India, with each partner holding an equal 50% equity share, owns and operates a 60 TMT underground LPG cavern with associated receiving and dispatch facilities at Visakhapatnam.
In FY 2025-26, SALPG achieved a throughput of 1.10 MMT, recorded total revenue of Rs.121.40 crore, and posted a Profit After Tax (PAT) of Rs.56.94 crore. SALPG has paid dividends continuously for the last 17 years and paid an interim dividend of 30% for FY 2025-26. In recognition of its excellence in Environment, Health and Safety (EHS), SALPG also received the Gold Award from CII in the Oil and Gas sector for the fourth consecutive time.
Prize Petroleum Company Ltd (PPCL)
Prize Petroleum Company Ltd (PPCL) is a wholly owned subsidiary and upstream arm of HPCL, engaged in the exploration and production (E&P) of hydrocarbons and offering services for the management of E&P blocks. PPCL has a wholly owned Singapore-based subsidiary, Prize Petroleum International Pte Ltd (PPIPL).
PPCL recorded a total revenue of Rs.77.55 crore on a consolidated basis for the FY 2025-26.
Hindustan Colas Pvt Ltd (HINCOL)
HINCOL is a joint venture between HPCL and Colas S.A., France, with each partner holding an equal 50% equity share. The company manufactures and markets bitumen derivatives for road and airfield construction across India and undertakes specialised road-maintenance activities such as micro-surfacing. HINCOL operates ten Bitumen Emulsion and Modified Bitumen plants and two bitumen storage terminals, with all facilities conforming to international standards such as ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018. Additionally, its R&D Centre and Quality Control Laboratories are certified by NABL under ISO/IEC 17025:2005.
In FY 2025-26, HINCOL recorded a sales volume of 377 TMT and achieved its highest-ever micro-surfacing area, covering over 18 lakh square meters. This strong operational performance resulted in a consolidated total revenue of Rs.1,894.48 crore and a Profit After Tax (PAT) of Rs.232.89 crore. Continuing its 26-year history of consistent dividend payments, HINCOL declared an interim dividend of 1,000% for the fiscal year.
HPCL Rajasthan Refinery Ltd (HRRL)
HPCL Rajasthan Refinery Ltd (HRRL), a joint venture between HPCL (74% equity) and the Government of Rajasthan (26% equity), is setting up a 9 MMTPA greenfield refinery-and- petrochemical complex in Rajasthan. This project is designed to enhance fuel product sufficiency and meet the growing demand for petrochemicals.
Overall physical progress of 91.7% had been achieved by 31 March 2026. All refinery process units except SRU are under pre-commissioning and commissioning stage. All utilities required for refinery commissioning have been completed. DFCU is under pre-commissioning stage. Trial runs of CDU / VDU units started with crude circulation from 6 February 2026. Naphtha and LPG have been produced along with intermediate streams. Currently more than 18,000 workers are deployed at site to complete various project activities of Rajasthan Refinery Project. HRRL has achieved 395 million man-hours as of 31 March 2026.
Mangalore Refinery and Petrochemicals Ltd (MRPL)
Mangalore Refinery and Petrochemicals Limited (MRPL), a key joint venture of ONGC (71.63% equity) and HPCL (16.96% equity), solidified its position as a leading public sector enterprise in the energy sector. As a Schedule A Miniratna CPSE, MRPL, with a present installed capacity of 15 MMTPA, continues to be a vital asset in the nation s refining landscape with 6% refining capacity share in India. MRPL is steadily expanding its retail footprint, currently operating 252 retail outlets as of March 2026.
During FY 2025-26, MRPL processed 16.774 MMT of crude oil, resulting in capacity utilisation of 112%. The company recorded a consolidated total revenue of n,05,353.68 crore and posted a Profit After Tax (PAT) of n,924.58 crore. The company paid an interim dividend of 40% during the year.
Ratnagiri Refinery and Petrochemicals Ltd (RRPCL)
Ratnagiri Refinery and Petrochemicals Ltd (RRPCL) is a joint venture between India s leading oil marketing companies. It is promoted by Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL), with equity participation structured in a 50:25:25 ratio, respectively. RRPCL is tasked with developing a state-of-the-art integrated refinery and petrochemical complex on the west coast of Maharashtra, a project that will enhance India s energy security and petrochemical capacity. Request has been made to Government of Maharashtra to offer alternate suitable land parcel as earlier land offered for the project was not found suitable.
IOCL, BPCL, HPCL, RRPCL and Saudi Aramco executed an MoU on April 11, 2018. ADNOC became the additional strategic partner in June 2018. The MoU, which was originally for a period of one year, has been extended from time to time with the last extension up to April 10, 2024. During the process of further extension of MoU, ADNOC has withdrawn from the MoU in view of their changed priorities. Saudi Aramco has desired to revisit the MoU terms and the discussions on extension of MoU were put on hold.
HPCL Biofuels Ltd (HBL)
HBL is a wholly owned subsidiary company of HPCL since 2009. HBL was promoted as a backward-integration initiative to enable HPCL s entry into ethanol manufacturing for blending in petrol. HBL has two integrated Sugar-Ethanol- Cogeneration plants at Sugauli and Lauriya in Bihar.
During FY 2025-26, HBL faced a challenging operating environment, but maintained stable performance in key commercial areas. The Company sold 63,258 MT of sugar in domestic and export markets, generating revenue of Rs.267 crore, and achieved 100% sale of the sugar quota allotted by Department of Food and Public Distribution (DFPD). Average sugar realisation improved to Rs.40,360/MT, reflecting a growth of 3.5% over the previous year.
Ethanol sales stood at 6,257 KL (B-heavy) and Company exported 38,191 MWh of co-generated power.
Distillery expansion to support grain-based feedstock is in progress.
Petronet MHB Ltd (PMHBL)
Petronet MHB Limited (PMHBL), a joint venture with ONGC, with each partner holding a 50% equity stake, plays a crucial role in the energy infrastructure of Karnataka. The company owns and operates a vital multiproduct petroleum pipeline, efficiently transporting products from the MRPL refinery across the state.
In the fiscal year 2025-26, PMHBL achieved its highest ever throughput of 4.066 MMT, recording a total revenue of Rs.234.75 crore and a Profit After Tax (PAT) of Rs.116.17 crore. Company paid an interim dividend of 19.30% during the year.
A testament to its commitment to global standards, PMHBL s Integrated Management System (IMS) holds five certifications: ISO 9001:2015 (Quality), ISO 14001:2015 (Environment), ISO 45001:2018 (Health and Safety), ISO 50001:2018 (Energy), and ISO 27001:2022 (Information Security). The company continues to upgrade its technologies in line with international best practices.
Bhagyanagar Gas Ltd (BGL)
Bhagyanagar Gas Limited (BGL) is a joint venture with GAIL (India) Ltd, in which each partner holds a 47.72% equity stake. The company operates extensive City Gas Distribution (CGD) networks across the key urban centres of Hyderabad, Vijayawada and Kakinada.
In the fiscal year 2025-26, BGL achieved sales of 1,02,151 MT of CNG and 496.21 lakh SCM of PNG. BGL has crossed milestone volume of 0.55 mmscmd during the year. This strong operational performance generated a revenue of Rs.1,049.14 crore and a Profit After Tax (PAT) of Rs.54.27 crore. BGL paid an interim dividend of 2.50% for the year.
The company s significant market presence is supported by a formidable infrastructure base, comprising 2,614 km of MDPE pipeline, 200 km of steel pipeline, 144 CNG stations, 473 commercial customers, 101 industries and 3,77,045 domestic connections serving communities across Telangana and Andhra Pradesh. BGL migrated to SAP S/4HANA (Cloud) during the year.
Aavantika Gas Ltd (AGL)
Aavantika Gas Limited (AGL) is a joint venture of HPCL and GAIL, with each partner holding 49.99% equity. AGL continues to expand its City Gas Distribution (CGD) network in Madhya Pradesh operating across Indore, Ujjain, Pithampur and Gwalior.
In FY 2025-26, AGL delivered a strong performance, achieving sales of 65,491 MT of CNG, 714.68 lakh SCM of PNG and 29.10 lakh SCM of CBG. This operational success translated into a total revenue of Rs.946.90 crore and a Profit After Tax (PAT) of Rs.93.71 crore. The company paid its highest-ever interim dividend of 40% for the year.
This performance is supported by AGL s extensive infrastructure, which includes 3,423 km of MDPE pipeline, 120 km of steel pipeline, 121 operational CNG stations and 2,03,627 domestic connections.
GSPL India Gasnet Ltd (GIGL)
GSPL India Gasnet Limited (GIGL) is a joint venture in which Gujarat State Petronet Ltd (GSPL) holds the majority 52% stake, IOCL holds 26% and BPCL holds 11%. HPCL holds 11% equity stake in the company. GIGL is tasked with development of critical cross-country gas pipelines. The company has been authorised to lay the Mehsana-Bathinda Pipeline (MBPL) and the Bathinda-Gurdaspur Pipeline (BGPL).
Significant progress has been achieved, with 1,420 km of pipeline commissioned out of 1,458 km constructed. During the year, GIGL commissioned the MBPL Mainline up to Receiving Terminal-Bathinda in Punjab. EPC works are in progress for the National Fertilizers Ltd (NFL) spurline.
In FY 2025-26, the company transported 1,751 MMSCM of natural gas and generated revenue of Rs.330.40 crore.
GSPL India Transco Ltd (GITL)
GSPL India Transco Limited (GITL) is a joint venture with Gujarat State Petronet Ltd (GSPL), which is the lead partner with a 52% stake, IOCL (26%), and BPCL (11%). HPCL holds an 11% equity share in the company. GITL has been authorised to lay a 1,881 km cross-country gas pipeline from Mallavaram to Bhilwara.
The initial section of this major project, connecting the pipeline interconnection point at Kunchanapalli to the Ramagundam Fertilisers & Chemicals Limited plant, has been operational since FY 2019-20.
During FY 2025-26, the company transported 544 MMSCM of natural gas and generated revenue of Rs.113.61 crore.
Godavari Gas Pvt Ltd (GGPL)
Godavari Gas Private Limited (GGPL), a joint venture with Andhra Pradesh Gas Distribution Corporation Limited (APGDC) holding the 74% stake and HPCL holding 26% is committed to develop City Gas Distribution (CGD) networks in the East and West Godavari districts of Andhra Pradesh.
In the fiscal year 2025-26, GGPL reported a revenue of Rs.114.61 crore and a Profit After Tax (PAT) of Rs.10.42 crore. This performance was driven by sales of 6,281 MT of CNG, 110.77 Lakh SCM of PNG, and 608 KL of MS & HSD from its retail outlet operations.
The company s infrastructure includes 642 km of MDPE pipeline, 111.2 km of steel pipeline, 17 CNG stations, one MS/ HSD retail outlet, and 1,00,907 domestic connections.
HPOIL Gas Pvt Ltd (HOGPL)
HPOIL Gas Private Limited (HOGPL), a 50:50 joint venture with Oil India Ltd (OIL), delivered an exceptional performance in FY 2025-26, marked by accelerated growth and significant operational milestones. The company achieved 18% year-on- year growth in CNG sales (volumes reaching 32,642 MT) and 20% growth in PNG sales (118.03 lakh SCM). The company also expanded its green energy portfolio with CBG sales of 2,236 MT, a 202% year-on-year growth.
This robust growth drove a total revenue of Rs.351.12 crore and a Profit After Tax (PAT) of Rs.0.92 crore. In the Nagaland GA, the company has acquired land in Dimapur for CGS construction, arranged gas supply logistics, secured regulatory approvals (including PESO) for CNG facilities and undertaken marketing and customer outreach initiatives.
The company s infrastructure includes 1,386 km of MDPE, 199 km of steel pipelines, 60,682 domestic connections, 2 City Gate Stations and 65 CNG stations.
HPCL LNG Limited (HPLNG)
HPCL LNG Limited (HPLNG), a wholly-owned subsidiary of HPCL, has successfully commissioned 5 MMTPA LNG regasification terminal located at Chhara Port in the Gir Somnath district of Gujarat. The Chhara LNG Terminal was dedicated to the nation by the Hon ble Prime Minister at the event Samudra se Samriddhi: Transforming India s Maritime Sector held in Bhavnagar on 20 September 2025, underscoring its strategic importance in strengthening India s LNG infrastructure.
During the year, the Terminal achieved a throughput of 334 TMT. LNG dispatch through tank trucks was also scaled up, contributing to widening of the gas market. The terminal maintained a safety record of zero Lost Time Accidents over 7.5 lakh man-hours. Operational reliability was further enhanced through augmentation of the Minimum Send-Out (MSO) system by installation of an additional compressor. The Terminal also achieved zero flaring of gas in the financial year. On the commercial front, HPLNG entered into Master Regasification Agreements with several key users.
Mumbai Aviation Fuel Farm Facility Pvt Ltd (MAFFFL)
Mumbai Aviation Fuel Farm Facility Private Limited (MAFFFL), a joint venture with Mumbai International Airport Limited (MIAL), IOCL and BPCL, where each partner holds an equal 25% stake, delivered another year of strong growth.
The business of the company is to operate and maintain existing Aviation fuel farm facilities and to provide Into- plane services at Chhatrapati Shivaji Maharaj International Airport (CSMIA), Mumbai.
In fiscal year 2025-26, MAFFFL achieved a throughput of 17.93 lakh KL, registering a robust growth of 2.82% over the previous year. This solid operational performance translated into total revenue of Rs.175.70 crore and a Profit After Tax (PAT) of Rs.79.90 crore. Reflecting its strong financial health and commitment to shareholder value, the company paid a highest ever interim dividend of 73% during the year.
HPCL Middle East FZCO (HMEF)
HPCL Middle East FZCO (HMEF), a wholly owned subsidiary of HPCL, is registered under the Dubai Airport Free Zone Authority (DAFZA) and holds a trade licence for lubricants and greases, petrochemicals and refined oil products. Conceived as HPCL s international business vehicle, HMEF undertakes trading and distribution of petroleum products, including lubricants, base oils and fuels. Its operating model is anchored in leveraging Dubai s strategic location and commercial ecosystem to service customers across the Middle East and Africa.
In the fiscal year 2025-26, HMEF recorded sales volume of 5,086 MT, comprising 2,323 MT of finished lubricants (year-on- year growth of 55%) and 2,763 MT of fuels (growth of 3%). This resulted in a total revenue of AED 21.41 million (Rs.51.53 crore) and a Profit After Tax (PAT) of AED 1.34 million (Rs.3.24 crore).
IHB Ltd (IHBL)
IHB Limited (IHBL), a joint venture company of IOCL, HPCL and BPCL holding equity in the ratio of 50:25:25 respectively was formed to construct and operate approximately 2800 km long Kandla-Gorakhpur LPG Pipeline (KGPL) to cater LPG requirements of 22 LPG bottling plants across Gujarat, Madhya Pradesh and Uttar Pradesh.
The KGPL main trunkline from Kandla to IOCL Bhopal, with a total length of 1,020 km, is operational. Seven Bottling Plants receive product through KGPL from Kandla and Koyali source points, including HPCL s Gandhinagar and Indore Bottling Plants.
On the IOCL Bhopal to Gorakhpur section, construction is complete up to Varanasi and the project is 95% complete overall. The remaining section up to Gorakhpur is expected to be completed by June 2026.
In the fiscal year 2025-26, KGPL handled a sales volume of 372 TMT, of which 70 TMT was HPCL s share.
HPCL Renewable & Green Energy Ltd (HPRGE)
HPCL Renewable & Green Energy Ltd (HPRGE) has been formed in 2024 as a wholly owned subsidiary of HPCL to enter the green energy business and manage a portfolio of green energy businesses, including biofuels, renewables, green hydrogen, carbon offsets, green mobility and alternative energy.
During the financial year, HPRGE commissioned a first-of- its-kind 1.5 MWp floating solar project at Visakhapatnam, a 5.6 MWp agri-solar project in Delhi, and rooftop solar installations aggregating to 0.74 MWp, taking the total commissioned capacity to 7.84 MWp.
P. CAUTIONARY STATEMENT
Matters covered in the Management Discussion and Analysis report, describing the Company s objectives, projections, estimates and expectations may be forwardlooking statements within the meaning of applicable securities laws and regulations. The actual performance could vary from those projected or implied. Important or unforeseen factors that could make a difference to the Corporation s operations include economic conditions, demand/supply and price conditions in the domestic and international market, changes in regulations and other incidental factors.
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