HPCL Share Price Live: Stock Surges 2% on Positive Q4 Numbers and Dividend Annoucement

13 May 2026 , 12:42 PM

Shares of Hindustan Petroleum Corporation Limited (HPCL) rose more than 2% on Wednesday, 13th May, on delivering a stellar financial performance in Q4 FY26, reporting a sharp 46% year-on-year (YoY) rise in net profit driven by higher refining margins, LPG compensation from the government, and improved operational efficiency.

The company also announced a strong final dividend, highlighting healthy cash flows and robust balance-sheet strength. HPCL’s record-breaking annual profit in FY26 further reflects the company’s strong operational momentum amid improving fuel demand and refining economics.

HPCL Q4 FY26 Financial Highlights

HPCL reported a standalone net profit of approximately ₹4,901.5–4,902 crore in the fourth quarter of FY26, compared to around ₹3,355 crore in the corresponding quarter last year.

Key Q4 FY26 Numbers

• Net Profit: ₹4,902 crore, up 46% YoY
• Revenue from Operations: ₹1.23 lakh crore, up 4.5% YoY
• Total Income: ₹1.245 lakh crore versus ₹1.191 lakh crore last year
• Profit Before Tax (PBT): ₹6,549.8 crore compared to ₹4,304.4 crore YoY
• Earnings Per Share (EPS): ₹23.04 versus ₹15.77 YoY

The strong earnings performance exceeded market expectations and showcased HPCL’s resilience despite rising finance and depreciation costs.

HPCL Q4 FY26 QoQ Performance

On a sequential basis, HPCL also posted healthy growth in profitability.

• Net profit increased 20.4% QoQ from ₹4,072 crore in Q3 FY26
• Revenue declined marginally from approximately ₹1.24–1.25 lakh crore in Q3 FY26
• Total expenses reduced due to lower purchase costs and favorable inventory adjustments

The reduction in overall expenses helped offset rising finance costs and depreciation expenses during the quarter.

Key Reasons Behind HPCL’s Strong Profit Growth

Higher Gross Refining Margin (GRM)

One of the biggest growth drivers for HPCL was the significant improvement in Gross Refining Margin (GRM).

• FY26 GRM: $8.79 per barrel
• FY25 GRM: $5.74 per barrel

Improved refining spreads and stronger global product cracks supported refining profitability during the year.

Government LPG Compensation Boosts Earnings

HPCL recognised approximately ₹3,300 crore as LPG under-recovery compensation from the Ministry of Petroleum & Natural Gas.

This compensation significantly supported the company’s profitability and helped strengthen overall earnings during FY26.

Operational Efficiency and Strong Fuel Demand

The company also benefited from:

• Strong domestic fuel consumption
• Improved refinery utilisation
• Better operational efficiencies
• Higher throughput and sales volumes

These factors collectively contributed to HPCL’s best-ever annual earnings performance.

Expense Trends in Q4 FY26

Despite strong profitability, some cost components increased during the quarter.

Rising Finance Costs

• Finance costs increased to ₹965 crore
• Compared to ₹674 crore in Q3 FY26

Higher Depreciation & Amortisation

• Depreciation and amortisation expenses rose to ₹2,399.8 crore
• Compared with ₹1,618.9 crore in the previous quarter

However, the sharp rise in refining margins and LPG compensation more than compensated for these higher expenses.

HPCL Dividend FY26

HPCL’s board recommended a final dividend of ₹19.25 per equity share with a face value of ₹10 each.

This comes in addition to the interim dividend of ₹5 per share already paid during the year.

Dividend Details

• Final Dividend: ₹19.25 per share
• Interim Dividend: ₹5 per share
• Record Date: 14 August 2026
• Subject to shareholder approval at the Annual General Meeting (AGM)

The dividend announcement signals management confidence in the company’s future cash generation capabilities.

HPCL FY26 Full-Year Performance

HPCL delivered a record-breaking financial performance for the full fiscal year FY26.

FY26 Annual Highlights

• Standalone Net Profit: ₹17,175 crore
• FY25 Net Profit: ₹7,365 crore
• Total Income: ₹4.81 lakh crore
• Domestic Sales Volume: 48.53 MMT versus 47.29 MMT
• Crude Throughput: 26.04 MMT

Notably, HPCL crossed the ₹17,000 crore annual profit mark for the first time in its history.

Market Outlook for HPCL

HPCL’s strong Q4 FY26 results indicate improving fundamentals in India’s oil marketing and refining sector. Higher refining margins, stable fuel demand, and government support mechanisms are expected to continue supporting profitability in the near term.

Investors will closely monitor:

• Future refining margins
• Crude oil price trends
• LPG subsidy compensation policies
• Domestic fuel consumption growth

The company’s strong dividend payout and record annual profit also enhance investor confidence going forward.

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