HPCL Q2 FY27 Results Analysis: EBITDA Swings to Rs. 9,075 Cr, PAT Slips 9% YoY (HINDPETRO)
Hindustan Petroleum Corporation Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 139,140.30 Cr (+26.12% YoY) and PAT growth of -9.08% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 22, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 139,140.30 Cr (+26.12% YoY) |
| PAT (Q2) | Rs. 3,482.62 Cr (-9.08% YoY) |
| EBITDA margin | 6.52% (+27 bps YoY) |
| EPS (Q2) | Rs. 16.37 (-9.02% YoY) |
| Market cap | Rs. 72,516.19 Cr |
| CMP | Rs. 340.80 |
Quarter Snapshot
Q2 FY27 delivered a sharp sequential turnaround: EBITDA swung Rs.25,216 Cr from Q1's record loss to +Rs.9,075 Cr, operating margin recovered to 5.19%, and debt fell Rs.7,139 Cr, meeting management's deleveraging guidance. However, PAT fell 9% YoY on a mechanical 48.5% effective tax rate from IndAS 2 deferred tax, H1 cash flow remains deeply negative, and the September crude re-spike plus a Rs.18,049 Cr unrecognized LPG buffer are headwinds for H2.
Key Investment Insights
Key Positives
- Revenue from operations grew 26.1% YoY to Rs.1,39,140 Cr on higher product prices and +5.5% volume growth
- EBITDA swung Rs.25,216 Cr from −Rs.16,141 Cr in Q1 to +Rs.9,075 Cr in Q2; operating margin recovered to 5.19% from −12.38%
- Downstream Petroleum segment EBIT grew 35.5% YoY to Rs.7,339 Cr with margin up 36 bps to 5.27%
- H1 GRM of $27.89/bbl vs $5.95/bbl in H1 FY26
- Gross debt cut by Rs.7,139 Cr from Q1 peak; D/E improved from 1.52 to 1.38
- JV/associate share more than doubled YoY to Rs.473 Cr, aided by HRRL (Barmer) first full quarter after SCO on June 22, 2026
- LPG per-cylinder loss collapsed from Rs.680 (June) to ~Rs.188 (Aug); Rs.3,960 Cr of LPG compensation recognized in H1
- Exports rose 12.1% YoY to 1.02 MMT on elevated export margins
Risk Factors
- Standalone PAT declined 9.08% YoY to Rs.3,482.62 Cr as effective tax rate doubled to 48.54% on a Rs.3,285 Cr deferred tax charge
- Finance costs jumped 58.6% YoY to Rs.1,207 Cr on higher debt load and rupee depreciation
- H1 operating cash flow was −Rs.7,832 Cr vs +Rs.19,100 Cr a year ago; FCF was −Rs.11,903 Cr, funded by Rs.18,928 Cr of short-term borrowings
- Crude throughput fell 5.6% YoY to 6.20 MMT, the first YoY decline in several quarters
- September crude re-spike (Brent $84→$91→$114 monthly averages) turned auto-fuel marketing margins negative again, creating a Q3 headwind
- Cumulative unrecognized LPG buffer grew to Rs.18,049 Cr (from Rs.12,799 Cr at March 2026), an off-balance-sheet P&L swing risk
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.