Hindustan Petroleum Corporation Limited (HINDPETRO) AI Stock Analysis

• Market Cap: ₹785.06B
• Dividend Yield: 3.26%
• Average Volume (3M): 211.80K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 1.50
• Revenue Growth: -1.81%
• EPS Growth: 231.75%
• Country: IN
• Employees: 8,154
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 19.14
• Shares Outstanding: 2,127,822,500
• 10 Day Avg. Volume: 297,141
• 30 Day Avg. Volume: 211,797
• PEG Ratio: -0.20
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 16.55
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 74.09
• Revenue Forecast (FY): ₹4.09T

• Rating: 67 Neutral
• Price Target: ₹400.00 ▼(-19.31% Downside)
• Action: Reiterated Date: 11/05/25
• Date: Action: Reiterated 11/05/25

Hindustan Petroleum Corporation Limited's stock score is driven by a strong valuation profile and positive technical indicators, despite financial performance challenges. The low P/E ratio and decent dividend yield make it attractive for value investors, while the bullish momentum supports short-term gains. However, financial inefficiencies and overbought technical indicators pose risks.

Positive Factors

Nationwide retail & distribution network

A nationwide retail and distribution footprint provides durable demand visibility and stable volume channels across transport, industrial and household segments. This entrenched network supports consistent sales, cross-selling of lubricants and LPG, and resilience to localized demand swings over months.

Scale refining and diversified product mix

Large-scale refining with a diversified product slate lets the company shift production toward higher-value products and capture refining margin opportunities. That operational flexibility and product diversity sustain earnings potential across varying crude and product price cycles over several months.

Relatively stable gross profit margin

A steady gross margin (~8.5%) indicates core refining economics remain intact and can cover variable costs. This margin stability provides a structural buffer to commodity swings and underpins the ability to restore operating profitability if utilization and product mix are optimized.

Negative Factors

Sharply declining free cash flow

A large fall in free cash flow materially reduces financial flexibility for capex, dividend support, and debt repayment. Over a multi-month horizon this constrains investment in refinery upgrades, logistics, or emissions projects and increases reliance on external financing for strategic initiatives.

Moderate and rising leverage

A debt-to-equity around 1.38 and rising debt elevates interest burdens and refinancing risk. This leverage profile limits capacity for opportunistic investments and makes earnings more sensitive to margin compression, weakening resilience to prolonged commodity or demand downturns.

Falling net margins and stagnant revenue

Declining net margins despite stable gross margins point to rising operating costs or inefficiencies. Coupled with flat revenues, this indicates limited top-line momentum and persistent margin pressure, making sustained improvement dependent on structural cost cuts or strategic volume gains.

Hindustan Petroleum Corporation Limited Business Overview & Revenue Model

Company Description

Hindustan Petroleum Corporation Limited refines and markets petroleum products in India and internationally. The company operates through Downstream Petroleum and All Other segments. It offers petrol, diesel, kerosene, liquefied petroleum gas (LPG), naphtha lubricants, specialties, and greases, as well as aviation turbine fuel; and markets and exports bulk fuels, bitumen, solvents, jet and marine fuel, marine lubes, household insecticides, hexane, propylene, jute batch oil, turpentine oil, carbon black feed stock, molten sulphur, and superior kerosene oil (SKO). The company is also involved in international trade activities, including crude oil imports, petroleum product imports/exports, import/export registration, shipping. Further, the company markets bulk fuels and petroleum products to industrial consumers like power plants, chemicals, fertilisers, shipping companies, and airlines. In addition, it offers LPG products under the HP Gas brand, as well as bulk LPG products for industries; and operates retail petrol pumps and pipelines for the transportation of petroleum products. Further, the company explores for and produces hydrocarbons, as well as provides management services for exploration and production blocks; and operates sugar ethanol-cogen plants in Bihar, and wind power plants in Maharashtra and Rajasthan. As of March 31, 2022, it operated through a marketing network of 137 regional offices; 70 depots; 53 LPG bottling plants; 47 aviation service facilities; 20,025 retail outlets; 1,638 SKO and light diesel oil dealers; and 6,243 LPG distributors, as well as 42 terminals, installation, and tap off points. The company was founded in 1910 and is headquartered in Mumbai, India. Hindustan Petroleum Corporation Limited is a subsidiary of Oil and Natural Gas Corporation Limited.

How the Company Makes Money

HPCL makes money mainly through downstream operations: (1) Refining: HPCL purchases crude oil and processes it in its refineries into products such as petrol (gasoline), diesel, aviation turbine fuel, LPG, and other refined petroleum products. Revenue is generated from selling these products in domestic and export markets, with profitability influenced by the difference between crude input costs and realized prices for refined products (refining margins), refinery utilization, product mix, and operating efficiency. (2) Marketing and distribution: HPCL sells petroleum products to end customers and intermediaries via retail fuel stations, direct sales to industrial/commercial consumers, aviation fueling, and LPG distribution. Earnings come from marketing margins and volumes across channels, supported by logistics and storage infrastructure. (3) Other/adjacent activities: Where applicable, HPCL also earns from sales of lubricants and other petroleum-related products and services tied to its marketing network. HPCL’s overall earnings are affected by crude and product price movements, domestic demand, competitive dynamics in fuel retailing, and the regulatory/pricing environment for certain fuels; specific partnership details not available: null.

Hindustan Petroleum Corporation Limited Financial Statement Overview

Summary

Hindustan Petroleum Corporation Limited exhibits stability in revenue but faces challenges in profitability and cash flow management. The balance sheet reveals moderate leverage, while decreasing cash flows and declining profitability margins underscore operational inefficiencies.

Income Statement

Hindustan Petroleum Corporation Limited shows a mixed performance on the income statement. The gross profit margin is relatively stable at around 8.5%, but the net profit margin has significantly decreased from 3.7% in 2024 to 1.6% in 2025. Revenue growth is stagnant, with a slight decrease of 0.01% from 2024 to 2025. EBIT and EBITDA margins have also declined, indicating a decrease in operational efficiency.

Balance Sheet

The company's balance sheet highlights a moderately leveraged position with a debt-to-equity ratio of approximately 1.38 as of 2025. The return on equity has decreased to 13.17% from 34.13% in 2024. The equity ratio stands at 26.27%, indicating a relatively stable equity base. However, the increase in total debt over the years suggests potential financial risk.

Cash Flow

Cash flow performance shows a declining trend. The free cash flow has decreased significantly from 137.8 billion in 2024 to 46.5 billion in 2025, indicating reduced cash available for expansion and dividends. The operating cash flow to net income ratio is 2.11 in 2025, suggesting a high dependency on operating activities for cash generation. The free cash flow to net income ratio has decreased, reflecting constrained cash generation relative to net income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.30T	4.32T	4.32T	4.39T	3.49T	2.32T
Gross Profit	436.36B	348.72B	424.73B	101.24B	247.95B	300.78B
EBITDA	260.12B	164.87B	251.77B	-51.98B	109.05B	160.55B
Net Income	139.29B	67.36B	160.15B	-69.80B	72.94B	106.63B
Balance Sheet
Total Assets	1.94T	1.95T	1.83T	1.61T	1.55T	1.34T
Cash, Cash Equivalents and Short-Term Investments	41.96B	34.19B	54.63B	56.87B	56.05B	58.98B
Total Debt	630.95B	705.58B	666.84B	706.71B	484.98B	437.09B
Total Liabilities	1.37T	1.44T	1.36T	1.29T	1.13T	960.79B
Stockholders Equity	568.89B	511.44B	469.21B	322.63B	414.04B	380.81B
Cash Flow
Free Cash Flow	149.94B	46.48B	137.81B	-129.13B	34.65B	61.63B
Operating Cash Flow	190.93B	142.28B	238.52B	-34.66B	158.10B	178.29B
Investing Cash Flow	-57.42B	-105.57B	-130.19B	-113.84B	-137.45B	-122.79B
Financing Cash Flow	-72.01B	-41.38B	-161.55B	160.25B	-20.66B	-47.09B

Hindustan Petroleum Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 495.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 495.75 is above the 20-day moving average (MA) of 422.24, above the 50-day MA of 441.74, and above the 200-day MA of 429.19, indicating a bearish trend. The MACD of -18.57 indicates Positive momentum. The RSI at 27.89 is Positive, neither overbought nor oversold. The STOCH value of 14.79 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BPCL	76 Outperform	₹1.38T	5.71	―	4.73%	-1.35%	61.80%
PETRONET	75 Outperform	₹429.38B	12.25	―	3.58%	-13.73%	-7.20%
MRPL	71 Outperform	₹311.96B	4.59	―	2.04%	-11.96%	14.31%
IOC	68 Neutral	₹2.21T	4.41	―	4.90%	-0.93%	42.85%
CHENNPETRO	67 Neutral	₹136.69B	3.11	―	0.55%	-4.61%	63.26%
HINDPETRO	67 Neutral	₹785.06B	6.62	―	3.26%	-1.81%	231.75%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Hindustan Petroleum Corporation Limited Corporate Events

Hindustan Petroleum Announces Completion of Independent Director’s Tenure

Hindustan Petroleum Corporation Limited announced a change in its board, with Independent Director K S Narendiran ceasing to hold office upon completion of his tenure on March 14, 2026. The directorship ended effective March 15, 2026, marking a routine board transition that may lead to further board reconstitution or fresh appointments as the company maintains its corporate governance and regulatory compliance framework.

Hindustan Petroleum Announces Senior Management Change in Aviation Division

Hindustan Petroleum Corporation Limited has announced a change in its senior management, effective March 1, 2026, under regulatory disclosure norms. Rajesh Mehtani, who was serving as Executive Director (in-charge) for the aviation business, has superannuated, prompting an update to the company’s leadership structure.

The transition marks a leadership change in HPCL’s aviation segment, a critical area that supports airline fueling operations and contributes to the firm’s downstream portfolio. While no successor is named in the disclosure, the shift underscores ongoing management renewal at the state-run refiner as it aligns its senior team with evolving operational needs.

HPCL Announces Senior Management Change at Rajasthan Refinery Project

Hindustan Petroleum Corporation Limited has announced a change in its senior management team, effective February 1, 2026. The company reported that Shri Udit Nandi, who served as Head – Operations & Commissioning at the Rajasthan Refinery Project site, has retired upon superannuation, signalling a leadership transition at a critical refinery project. While no successor or additional details were disclosed, the change underscores ongoing shifts in HPCL’s project-level management structure, which could be significant for the execution and operations of its Rajasthan refinery initiative.

HPCL Denies Report on Talks to Procure Venezuelan Crude

HPCL has clarified to Indian stock exchanges that it has not entered into any negotiations or events related to the procurement of Venezuelan crude oil, contrary to a recent media report claiming the company was seeking such crude to boost heavy oil runs. The company further stated it is unaware of any undisclosed information that could explain recent movements in its share price, emphasized that there are no regulatory or legal proceedings or material impact arising from the news item, and labelled the report as incorrect and out of context, asserting that trading in its shares is driven purely by general market conditions and investor sentiment.

HPCL Uploads Audio Recording of Q3 Post-Earnings Conference Call

Hindustan Petroleum Corporation Limited has notified the stock exchanges that it has made available the audio recording of its post-earnings conference call held on January 22, 2026. The recording link has been shared with the exchanges to ensure transparent communication with investors and other stakeholders, facilitating easier access to management’s discussions on the company’s quarterly performance and outlook.

HPCL Board Clears Q3 FY2025 Unaudited Results, Confirms No Loan Defaults

Hindustan Petroleum Corporation Limited announced that its Board of Directors has approved the company’s unaudited standalone and consolidated financial results for the quarter and period ended December 31, 2025, which have been reviewed by the auditors. The board also took note of regulatory disclosures on the utilisation of proceeds from non-convertible debentures and confirmed a NIL security cover requirement for these instruments, while further stating that there are no defaults on loans, revolving credit facilities, or unlisted debt securities, underscoring the company’s ongoing regulatory compliance and stable debt-servicing position.

HPCL Elevates Nine Executives to Strengthen Senior Management Ranks

Hindustan Petroleum Corporation Limited has announced a broad reshuffle in its senior management, elevating nine internal candidates to the position of Executive Director, a level just below the Board of Directors, with immediate effect. The promotions span key operational and commercial verticals – including retail (zonal and headquarters), engineering projects and facilities planning, special marketing projects and brand management, industrial and consumer business, aviation, central procurement, central projects for refineries, and the Mumbai Refinery – signaling a strategic strengthening of leadership across core business segments. The move underscores HPCL’s reliance on internal talent development to bolster execution capabilities in critical areas such as retail expansion, refinery operations, project implementation, and brand positioning, and is likely to influence the company’s operational efficiency and competitive stance in India’s energy market.

HPCL Confirms SEBI Dematerialisation Compliance for December 2025 Quarter

Hindustan Petroleum Corporation Limited has reported that it remains in full compliance with Regulation 74(5) of the Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025. The company’s registrar and transfer agent, MUFG Intime India Private Limited, has certified that all securities submitted for dematerialisation during the period were duly processed, confirmed or rejected within prescribed timelines, appropriately mutilated and cancelled where required, and that the underlying securities are listed on the same stock exchanges as previously issued securities, underscoring HPCL’s adherence to regulatory requirements in handling its listed securities.

HPCL Commissions World’s First LC-Max Residue Upgradation Unit at Visakh Refinery

HPCL has commissioned a Residue Upgradation Facility (RUF) at its 15 MMTPA Visakh Refinery, featuring the world’s first LC-Max based residue hydrocracking unit with a capacity of 3.55 MMTPA and about 93% conversion of bottom oils into high-value products. The new facility is expected to lift the refinery’s distillate yield by up to 10% compared with pre-expansion levels, significantly boosting Gross Refining Margins through a superior product slate, the ability to process heavier or opportunity crudes, and higher value realisation per barrel. This higher middle-distillate output will help narrow the gap between HPCL’s diesel marketing and refining volumes, reduce reliance on external sourcing, strengthen its supply chain, and enhance profitability. With the RUF, the Visakh Refinery’s Nelson Complexity Index rises to 11.6, placing it among India’s most advanced deep-conversion refineries, while the embedded LC-Max digital suite is expected to support more efficient, optimised operations and sustained margin management.