Highlights:

• Analysts from Antique Stockbroking, Elara Securities, ICICI Securities and Motilal Oswal have issued buy ratings on HPCL.
• The ratings follow HPCL’s announcement of a 731% jump in standalone profit after tax for H1 FY26.
• The company has declared an interim equity dividend of ₹5 per share alongside strong operational and financial performance.

Hindustan Petroleum Corporation Limited (NSE: HINDPETRO) has received buy ratings from multiple brokerage houses, including Antique Stockbroking Ltd., Elara Securities Pvt Ltd, ICICI Securities Ltd. and Motilal Oswal Securities Ltd., according to data from analyst estimates. These ratings come at a time when HPCL has posted a notable rise in profitability for the half year ended 30 September 2025, supported by its refining and marketing operations.

Profit Growth Strengthens Market View

HPCL reported a 731% year-on-year rise in standalone profit after tax for H1 FY26, reaching ₹8,201 crore. Profit for the second quarter alone grew by 507% to ₹3,830 crore compared with the same period of the previous year. The company also declared an interim equity dividend of ₹5 per share, reflecting its financial position for the period under review.

Revenue from operations stood at ₹230,458 crore for H1 FY26, slightly higher than ₹229,074 crore recorded in H1 FY25. For Q2 FY26, revenue reached ₹110,323 crore. Gross refining margins rose to USD 5.95 per barrel in H1 FY26 and widened further to USD 8.80 per barrel in Q2 FY26.

Consolidated profit after tax for H1 FY26 was ₹7,970 crore, while Q2 consolidated profit stood at ₹3,859 crore.

Refining and Marketing Operations Continue Upward Momentum

HPCL’s refineries achieved their highest-ever crude throughput at 13.23 MMT during H1 FY26, an increase of 9.7% over the same period last year. The Visakh Refinery operated at 108% of its enhanced capacity, delivering 8.14 MMT of throughput, while the Mumbai Refinery operated at 107% capacity with 5.09 MMT processed.

In Q2 FY26, the refineries processed 6.57 MMT of crude, again exceeding nameplate capacity levels at both locations. HPCL also added five new crude grades to its processing slate during H1 FY26, supporting flexibility and operational scale.

The marketing segment registered a 3.5% rise in sales volume, reaching 25.11 MMT for the half year.

Financial Position and Strategic Initiatives

The company continued to make progress in lowering its standalone debt-equity ratio, which improved to 1.07 as of 30 September 2025 compared with 1.38 at the end of March 2025.

HPCL advanced its Project Samriddhi programme, generating ₹823 crore in EBITDA-linked improvements in H1 FY26. The company also signed a Joint Development and Cooperation Agreement with Lummus Technology, USA, for the commercialization of HP-NTO technology.

In the research and collaboration space, HP Green R&D Centre entered an MoU with the National Centre for Polar & Ocean Research to support scientific initiatives covering decarbonisation in Antarctica, sustainable aviation fuels, compressed bio-gas and advanced products for polar operations. HPGRDC has filed 684 patents to date, with 272 granted.

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