Hindustan Petroleum Corporation Ltd (HPCL) saw its shares climb in Wednesday's afternoon trade after the state-run oil marketing company (OMC) announced a significant surge in its fourth-quarter earnings for the fiscal year 2026, alongside a final dividend for shareholders.
Strong Financial Performance in Q4 FY26
For the March 2026 quarter (Q4 FY26), HPCL posted a consolidated net profit of Rs 6,065 crore, marking a substantial 77.60% increase year-on-year (YoY) compared to Rs 3,415 crore reported in the same period last year. This robust profit growth was a key factor in the positive market reaction, with HPCL shares rising 3.44% to hit a day high of Rs 382.30.
Revenue from operations also saw a healthy rise, increasing by 4.45% YoY to Rs 1,23,602 crore in Q4 FY26, up from Rs 1,18,334 crore in the year-ago period. A significant improvement was observed in the company's gross refining margin (GRM), which sharply improved to $14.27 per barrel during the quarter, compared to $8.44 per barrel in Q4 FY25.
Operational Highlights and Capital Expenditure
Operationally, HPCL's refineries demonstrated strong performance. They recorded a crude throughput of 6.43 million metric tonnes (MMT) in the March quarter. Specifically, the Visakh refinery operated at 105% of its capacity, processing 3.89 MMT, while the Mumbai refinery processed 2.54 MMT at an impressive 109% capacity utilisation.
The company also diversified its crude oil processing, introducing four new grades during the quarter, bringing the total number of crude grades processed in FY26 to 52. Sales volume, including exports, stood at 13 MMT in Q4 FY26, representing a 2.4% increase YoY.
Capital expenditure (capex) for the quarter amounted to Rs 4,611 crore, contributing to a cumulative capex of Rs 15,705 crore for the entire fiscal year 2026.
Final Dividend Announced with Record Date
In addition to its strong earnings, HPCL's board recommended a final dividend of Rs 19.25 per equity share, with a face value of Rs 10, for FY26. This dividend is subject to shareholder approval at the upcoming Annual General Meeting (AGM). This final payout supplements the interim dividend of Rs 5 per equity share that was already distributed for FY26. The company has set August 14, 2026, as the record date to determine shareholder eligibility for this final dividend.