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Hindustan Petroleum Corporation Limited
(HINDPETRO)
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Rating:60Neutral
Price Target:
₹360.00
▼(-5.57% Downside)
Action:Reiterated
Date:10/23/26
The score is anchored by improving financial performance (strong FY2026 rebound in margins/earnings, lower leverage, better cash generation) and a constructive earnings narrative around operational recovery and project ramp-ups. These positives are tempered by cyclical volatility and uneven cash conversion, while technicals remain weak-to-neutral and valuation is mixed—high dividend yield but a high P/E.
Positive Factors
FY2026 profitability recovery
The sharp improvement in margins and profitability shows meaningful operational recovery after a weak period. If maintained, stronger earnings provide greater capacity to fund projects, support the retail network, and absorb volatility across the refining and marketing cycle.
Negative Factors
Cyclical and volatile earnings
The wide variation between loss-making and strongly profitable periods demonstrates substantial sensitivity to refining margins, crude conditions, and operating performance. This cyclicality makes earnings less predictable and can complicate sustained cash generation and capital planning.
Read all positive and negative factors
Positive Factors
Negative Factors
FY2026 profitability recovery
The sharp improvement in margins and profitability shows meaningful operational recovery after a weak period. If maintained, stronger earnings provide greater capacity to fund projects, support the retail network, and absorb volatility across the refining and marketing cycle.
Read all positive factors
Hindustan Petroleum Corporation Limited (HINDPETRO) vs. iShares MSCI India ETF (INDA)
Market Cap
₹722.40B
Dividend Yield7.13%
Average Volume (3M)317.87K
Price to Earnings (P/E)50.5
Beta (1Y)1.53
Revenue Growth16.94%
EPS Growth-89.68%
CountryIN
Employees8,256
SectorGeneral
Sector StrengthN/A
IndustryOil & Gas Refining & Marketing
Share Statistics
EPS (TTM)84.81
Shares Outstanding2,127,822,500
10 Day Avg. Volume247,223
30 Day Avg. Volume317,871
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)1.09
Price to Sales (P/S)0.16
P/FCF Ratio2.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹310.00Price Target Upside-18.69% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)-19.8
Revenue Forecast (FY)₹5.47T
Hindustan Petroleum Corporation Limited Business Overview & Revenue Model
Company Description
Hindustan Petroleum Corporation Limited, together with its subsidiaries, engages in the refining and marketing of petroleum products in India and internationally. It operates through Downstream Petroleum and All Other segments. The company offers ...
Hindustan Petroleum Corporation Limited Earnings Call Summary
Earnings Call Date:Oct 22, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Jan 28, 2027
Earnings Call Sentiment Positive
The call was predominantly positive, reflecting a substantial rebound from Q1 losses, strong Q2 operating performance, improved leverage, progress at the Rajasthan refinery, cost and financial restructuring benefits, and broad digital, retail, renewable-energy and alternative-fuel initiatives. However, management highlighted meaningful ongoing challenges from high and volatile crude prices, LPG under-recoveries, sharply higher freight costs, elevated leverage, Rajasthan's ramp-up phase and the delayed stabilization of the Vizag RUF unit.Positive Updates
Strong Q2 EBITDA and Profitability Recovery
Q2 EBITDA was INR 9,822 crores versus an EBITDA loss of INR 14,816 crores in Q1, a positive swing of INR 24,681 crores. PBT was INR 6,768 crores versus a loss of INR 17,446 crores in Q1, a swing of INR 24,214 crores, while PAT was INR 3,438 crores.
Negative Updates
High and Volatile Crude Prices
Management described crude prices as currently quite high and fluctuating widely, with Brent cited at approximately $114. The ongoing crisis had lasted more than eight months, and management said current crude prices were not sustainable if elevated for a prolonged period.
Read all updates
Q2-2027 Updates
Positive
Negative
Strong Q2 EBITDA and Profitability Recovery
Q2 EBITDA was INR 9,822 crores versus an EBITDA loss of INR 14,816 crores in Q1, a positive swing of INR 24,681 crores. PBT was INR 6,768 crores versus a loss of INR 17,446 crores in Q1, a swing of INR 24,214 crores, while PAT was INR 3,438 crores.
Read all positive updates
Company Guidance
Management said Rajasthan Refinery would run at around 55%-60% utilization, with throughput expected to reach a run rate of 8-9 MMTPA towards the end of quarter three, sometime in December, and later described 8-8.5 MMTPA equivalent run rate at full refining capacity; with high sulfur crudes, GRMs are expected to be 20%+ in Q4, while the first petrochemical units are expected to come on stream towards quarter four, with the DFCU expected somewhere in Q4 and petchem production benefits, barring propylene, not expected in this financial year. For Vizag RUF, management is holding to the guidance of $0.7-$1/bbl uplift, expects $0.65-$0.7/bbl uplift in October, is hopeful of reaching the full benefit in March, or even before that, and expects higher utilization and higher GRM impact in the next analyst call. Chhara is expected to handle five to six cargoes in H2 and reach 15%-20% utilization in H2, while Navya is targeted at about 1 lakh primary sales by Diwali. The company has a line of sight of 1+ GW of captive renewable portfolio over the next two years, including 270 MW under construction and 500 MW under development, and expects to get to the guidances given for Samriddhi, with a locked-in run rate of about INR 600 crores-INR 700 crores.Hindustan Petroleum Corporation Limited Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
60
Neutral
Cash Flow
63
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.42T | 4.32T | 4.32T | 4.39T | 3.49T |
| Gross Profit | 456.54B | 348.72B | 424.73B | 101.24B | 247.95B |
| EBITDA | 343.81B | 170.19B | 251.77B | -51.98B | 109.05B |
| Net Income | 180.47B | 67.36B | 160.15B | -69.80B | 72.94B |
Balance Sheet | |||||
| Total Assets | 2.03T | 1.95T | 1.83T | 1.61T | 1.55T |
| Cash, Cash Equivalents and Short-Term Investments | 32.78B | 34.19B | 54.63B | 56.87B | 56.05B |
| Total Debt | 559.64B | 705.58B | 666.84B | 706.71B | 484.98B |
| Total Liabilities | 1.37T | 1.44T | 1.36T | 1.29T | 1.13T |
| Stockholders Equity | 655.56B | 511.44B | 469.21B | 322.63B | 414.04B |
Cash Flow | |||||
| Free Cash Flow | 246.90B | 46.48B | 137.81B | -129.13B | 34.65B |
| Operating Cash Flow | 330.21B | 142.28B | 238.52B | -34.66B | 158.10B |
| Investing Cash Flow | -121.07B | -105.57B | -130.19B | -113.84B | -137.45B |
| Financing Cash Flow | -189.78B | -41.38B | -161.55B | 160.25B | -20.66B |
Hindustan Petroleum Corporation Limited Technical Analysis
Negative
381.25
Price Trends
350.99
Negative
362.78
Negative
371.03
Negative
Market Momentum
-1.84
Negative
45.54
Neutral
58.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HINDPETRO, the sentiment is Negative. The current price of 381.25 is above the 20-day moving average (MA) of 341.11, above the 50-day MA of 350.99, and above the 200-day MA of 371.03, indicating a bearish trend. The MACD of -1.84 indicates Negative momentum. The RSI at 45.54 is Neutral, neither overbought nor oversold. The STOCH value of 58.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HINDPETRO.
Hindustan Petroleum Corporation Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ₹225.04B | 3.95 | ― | 5.76% | 31.17% | 387.42% | |
71 Outperform | ₹1.23T | 7.70 | ― | 7.91% | 21.77% | -25.56% | |
70 Outperform | ₹1.84T | 5.33 | ― | 6.35% | 13.47% | 99.32% | |
69 Neutral | ₹303.29B | 6.87 | ― | 4.05% | 38.12% | 325.84% | |
62 Neutral | ₹15.75T | 21.10 | ― | 0.52% | 15.00% | -8.32% | |
60 Neutral | ₹722.40B | 50.45 | ― | 7.13% | 16.94% | -89.68% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:HINDPETRO
Hindustan Petroleum Corporation Limited
339.50
-108.51
-24.22%
IN:BPCL
Bharat Petroleum Corporation Limited
284.30
-55.62
-16.36%
IN:CHENNPETRO
Chennai Petroleum Corporation Limited
1,511.25
594.94
64.93%
IN:IOC
Indian Oil Corp. Ltd.
130.00
-27.56
-17.49%
IN:MRPL
Mangalore Refinery & Petrochemicals Ltd.
173.05
12.85
8.02%
IN:RELIANCE
Reliance Industries Limited
1,163.55
-316.11
-21.36%
Hindustan Petroleum Corporation Limited Corporate Events
HPCL Discloses Independently Issued ESG Rating to Exchanges
Sep 26, 2026
Hindustan Petroleum Corporation Limited has disclosed that SES ESG Research Private Limited has assigned an independent Environmental, Social and Governance rating to the company. HPCL clarified to the stock exchanges that it did not engage SES ES...
HPCL Senior Management to Join J.P. Morgan India Investor Conference
Sep 11, 2026
Hindustan Petroleum Corporation Limited has announced that its senior management team will participate in the J.P. Morgan India Conference in Mumbai on Tuesday, September 22, 2026, from 2:00 p.m. onwards, in a physical format. The company has clar...
HPCL Discloses Independently Prepared ESG Rating to Exchanges
Sep 10, 2026
Hindustan Petroleum Corporation Limited has disclosed that ESG Risk Assessments Insights Limited has assigned an Environmental, Social and Governance rating to the company, in line with SEBI’s disclosure regulations. The rating, prepared in...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.