Two state-run refiners reported July–September results on 22 October 2026 with gross refining margins several times last year's, but with very different profit outcomes. Spectate Media has not seen the companies' filings and relies on press summaries of them.
HPCL
HPCL's gross refining margin (GRM) was $32.15 a barrel, against $8.80 a year earlier, excluding the effect of special excise duty and cess on some exports. Standalone net profit was ₹3,483 crore, down 9.1% from ₹3,830 crore a year ago, after a ₹11,526 crore loss in April–June. Consolidated profit was ₹3,625 crore, down 6.1%. Pre-tax profit rose 32.2% to ₹6,768 crore, but tax of ₹3,285 crore, all deferred, took the net lower. The first half was a standalone loss of ₹8,044 crore. Revenue was ₹1,39,140 crore, up 26.1%. HPCL cited suppressed marketing margins on some products, and says an unrecognised LPG under-recovery buffer stood at ₹18,049 crore. No interim dividend was declared.
CPCL
Chennai Petroleum's net profit was ₹2,271.29 crore, against ₹1,016.67 crore in the first quarter, and GRM was $20.41 a barrel against $9.04 a year earlier. The Hindu reports profit more than tripled. Revenue fell to ₹22,055 crore from ₹29,359 crore in the first quarter. EBITDA was ₹3,031.57 crore, a margin of 13.74%, though another report labels the same ₹3,032 crore as pre-tax profit. The board declared an interim dividend of ₹25 a share, record date 30 October.
Key numbers
- HPCL gross refining margin: $32.15 a barrel (From $8.80 a year earlier)
- HPCL standalone net profit: ₹3,483 crore (Down 9.1% year on year)
- CPCL gross refining margin: $20.41 a barrel (From $9.04 a year earlier)
- CPCL net profit: ₹2,271 crore (From ₹1,017 crore in Q1)
What boards and CFOs should note
Three points stand out. First, high refining margins reached profit only partly at HPCL, where marketing losses and tax weighed. Second, CPCL kept more of its margin, and paid a dividend. Third, the two refiners' figures use different bases, so compare them with care.
Source: PSU Watch, HPCL Q2 FY27, 22 October 2026. This is a summary of a news report, published as general information. It is not legal, tax or investment advice.
This article is journalism and commentary. It is not a recommendation to buy or sell any security, and it is not professional advice. Read the full disclaimer.
