HPCL Net Profit Drops 9 Percent in Second Quarter Due to Volatile Crude Prices

Hindustan Petroleum Corporation Limited (HPCL) reported a 9 percent decline in its net profit for the second quarter (July-September), driven by high volatility in international crude oil prices. The Mumbai-headquartered oil marketing company released its official financial results for the quarter.

Due to global market conditions and geopolitical tensions in West Asia that led to fluctuations in crude prices, the company's standalone net profit stood at Rs 3,483 crore. In the corresponding quarter of the previous financial year, HPCL had recorded a net profit of Rs 3,830 crore. Higher crude procurement costs and tax expenses impacted marketing margins during the period.

Despite the pressure on net profit, the company's Gross Refining Margin (GRM), which indicates refining profitability, stood at 32.15 dollars per barrel for the quarter. While revenue from operations showed steady growth, higher input costs created pressure on marketing divisions.

HPCL is one of India's leading public sector oil refining and marketing companies. Changes in international benchmark crude oil prices directly influence the operational margins of major Indian fuel retailers.