HPCL's refining margin rose 3.7x, yet its profit fell 9%

HPCL's results of 22 October 2026 show its refining margin, what a barrel of crude earns once it is turned into fuel, at US$ 32.15 in the September quarter: 3.7x the US$ 8.80 of a year ago. Yet its profit fell 9%, to ₹3,483 crore from ₹3,830 crore.

Chennai Petroleum, reporting the same day with a release about its refinery alone, earned a smaller margin, US$ 20.41 against US$ 9.04. Its profit rose 3.1x, to ₹2,271 crore from ₹732 crore.

The difference seems to be what HPCL does after refining. It sold 12.73 million tonnes of fuel in the quarter through 25,245 petrol pumps, 2.1x the 6.20 million tonnes of crude its refineries processed. Its results say thin selling margins on some products held profit down. On LPG it gives a number: the shortfall on cylinders sold below their market price, which it cannot count as revenue until the government agrees to pay it, grew ₹5,250 crore in 6 months to ₹18,049 crore.

The half year shows it plainly. HPCL lost ₹11,526 crore in April to June, so over 6 months it lost ₹8,044 crore, against a ₹8,201 crore profit a year earlier, with a refining margin of US$ 27.89 against US$ 5.95. Its debt rose to ₹65,458 crore from ₹47,599 crore in March.

In short, HPCL sells about twice what it refines, so its refining margin is half the story. What it could charge for fuel and LPG decided the rest.

HPCL's refining margin rose more than Chennai Petroleum's

Gross refining margin, US$ a barrel, July to September 2025 and 2026. HPCL's went up 3.7x, Chennai Petroleum's 2.3x.

GROSS REFINING MARGIN, US$ A BARREL

Jul-Sep 2025Jul-Sep 2026

HPCL's margin is before export cess. Refineries' margins differ with the crude they buy and the fuels they make.

HPCL and Chennai Petroleum, press releases on results (BSE), 22 October 2026 · Jul-Sep 2025 and 2026

HPCL's profit fell while Chennai Petroleum's tripled

Profit after tax for July to September, in ₹ crore. HPCL's fell 9% despite the bigger margin; Chennai Petroleum's rose 3.1x.

₹ CRORE A QUARTER

Jul-Sep 2025Jul-Sep 2026

HPCL's figures are standalone, as its release gives them; its consolidated profit was ₹3,625 crore against ₹3,859 crore.

HPCL and Chennai Petroleum, press releases on results (BSE), 22 October 2026 · Jul-Sep 2025 and 2026

HPCL's April to June loss outweighs its July to September profit

HPCL's standalone profit or loss by quarter, in ₹ crore. Over April to September 2026 it lost ₹8,044 crore, against a ₹8,201 crore profit a year earlier.

₹ CRORE, PROFIT OR LOSS AFTER TAX

HPCL's refining margin over April to September 2026 was US$ 27.89 a barrel, against US$ 5.95 a year earlier.

HPCL, standalone results for the quarter and half year to 30 September 2026 (BSE), 22 October 2026 · Jul-Sep 2025 to Jul-Sep 2026

HPCL's unbooked LPG shortfall grew ₹5,250 crore in 6 months

The shortfall HPCL has run up selling LPG below its market price, in ₹ crore, to each date. It stays off the books until the government agrees to pay it.

₹ CRORE, CUMULATIVE, NOT BOOKED

Separately, the government agreed to pay ₹7,920 crore for LPG losses to March 2026. ₹3,960 crore of it is in HPCL's April to September revenue.

HPCL, standalone results for the half year to 30 September 2026 (BSE), note 5, 22 October 2026 · Sep 2025 to Sep 2026

Sources

• Hindustan Petroleum Corporation (HPCL), BSE filing of 22 October 2026: press release on results for the quarter and half year to 30 September 2026 (PDF)
• Hindustan Petroleum Corporation (HPCL), BSE filing of 22 October 2026: unaudited standalone and consolidated results with the auditors' review reports (PDF)
• Hindustan Petroleum Corporation (HPCL), BSE filing of 22 October 2026: investor handout, quarter and half year to 30 September 2026 (PDF)
• Chennai Petroleum Corporation, BSE filing of 22 October 2026: press release on results for the quarter to 30 September 2026 (PDF)