Archive · 23 Jul 2026
HPCL Reports ₹26,000 Crore Under Recovery in Q1 FY27
HPCL, a state-run oil company in India, reported a big loss and a lot of under recovery in the first quarter of the financial year 2026-27.
This happened because of a conflict in West Asia that made oil prices go up.
HPCL sold petrol, diesel, and LPG at lower prices than they cost, which led to a loss of ₹26,000 crore.
The company also had a net loss of ₹12,265 crore.
They are trying to reduce their debt and improve their operations to make more money.
HPCL reported a net loss of ₹12,265 crore in Q1 FY27 due to elevated crude oil prices.
The company's under recovery on petrol, diesel, and LPG stood at ₹26,000 crore.
Average Brent price was $97 per barrel, up 25% quarter-over-quarter and 45% year-over-year.
HPCL's debt increased by ₹25,000 crore, reflecting the financial burden of elevated crude costs.
The company launched Samriddhi 2.0 to improve EBITDA by ₹1,500 crore, with ₹1,000 crore targeted as accrual for FY27.
- Who
- Hindustan Petroleum Corporation (HPCL)
- What
- Reported a net loss and significant under recovery in Q1 FY27
- When
- April-June 2026
- Where
- India
- Why
- Due to the conflict in West Asia and elevated crude oil prices
HPCL Management
Analysts
Debt Reduction Priority
HPCL Management
HPCL management prioritizes debt reduction to bring the debt-to-equity ratio back toward 0.8.
Analysts
Analysts may focus on the immediate financial impact and under-recoveries.
- Under Recovery Amount
- ₹26,000 crore
- Net Loss
- ₹12,265 crore
- Average Brent Price
- $97 per barrel
- LPG Loss per Cylinder
- ₹510
- Debt Increase
- ₹25,000 crore
- Samriddhi 2.0 Target
- ₹1,500 crore EBITDA improvement