HPCL: Refining Crude, Burning Cash, But Still Dividending Like a Champ?

1. At a Glance

India’s 2nd-largest petroleum marketer with a 20.5% market share and the most loyal LPG customers this side of the Arabian Sea. Also: ₹91,933 Cr market cap and more swings than a gymnastic tournament.

2. Introduction with Hook

If PSU oil marketing companies were a Netflix series, HPCL would be the plot twist you didn’t expect — from FY23 losses to a ₹6,736 Cr profit in FY25. But as always: profits come, capex hits back, and government hugs everyone with fuel subsidies.

• PAT FY25: ₹6,736 Cr
• EPS: ₹31.66
• Dividend payout: 33%
• OPM? Don’t ask. But okay: ~4%

3. Business Model (WTF Do They Even Do?)

Core Ops:

• Refining: 2 major refineries (Mumbai, Visakh)
• Marketing: 20.5% domestic share in petrol/diesel
• Lubes: India’s largest lube refinery
• Pipelines: 2nd-largest product pipeline network
• LNG & E&P: HPCL Shapoorji Energy, JV in Rajasthan gas, Mangalore terminals

Fuel Strategy:

• Crude import → refining → selling petrol/diesel/LPG/lubes
• LPG subsidy handling = Govt math olympics
• Fuel price deregulation? On paper only.

4. Financials Overview

PSU Rule