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HPCL reported a strong Q4 FY25 with PAT increasing 18% YoY to INR 3,355 crores, contributing to a full-year PAT of INR 7,365 crores. This marks a significant improvement from the first half of FY25, which saw PAT of INR 987 crores. The company's average monthly PAT in the last quarter exceeded INR 1,100 crores, indicating robust profitability and positive momentum.

The company achieved a record refining throughput of 25.27 million tons for FY25, with the Vizag refinery contributing 15.3 MT and the Mumbai refinery nearly touching 10 MT. Q4 FY25 refinery throughput was 6.74 MT, a 24.8% increase from 5.4 MT in Q4 FY24, reflecting a structural improvement in operations. Pipeline throughput also reached a highest ever of 26.9 MT for FY25, contributing to transportation cost savings.

HPCL's marketing volumes for FY25 reached a record 49.82 MT. Domestic market sales grew by 5.5%, outperforming the industry's 4.2% growth, leading to a market share gain of 0.25% amongst peers. The company's HSD sales grew 2.2% in Q4 FY25, significantly higher than the industry retail growth of 0.3%, demonstrating strong performance in a muted market.

The 5MTPA Chhara terminal was commissioned in February 2025, with gas supplies initiated and a major mid-term gas deal signed in April. The LPG cavern in Mangalore is nearing commissioning. For the Vizag Residue Upgradation Project (VRMP), pre-commissioning activities have begun, with feed-in expected in Q2 FY26, projected to add $2-$3 per barrel to GRMs. The HRRL (Barmer refinery) is progressing steadily, with crude distillation unit expected to take crude by October 1st, and the Petchem unit by January 1st, FY27, targeting a mid-cycle GRM of $20 per barrel.

HPCL's capex for FY25 was INR 14,500 crores, with FY26 projected at INR 13,000-14,000 crores, primarily for project completion. The company aims to reduce its standalone debt-equity ratio from 1.38 to 1-1.1 next year, with a long-term target of 0.7, driven by internal cash generation as the major capex cycle concludes. Equity investment in HRRL was INR 4,000 crores, and refinery investment was INR 5,000 crores, with an annual CGD capex of INR 1,000-1,100 crores.

HPCL absorbed INR 10,900 crores in LPG under-recovery for FY25, with the current under-recovery at INR 165-170 per cylinder. While the government has indicated using excise duty for compensation, a firm mechanism is awaited. HMEL's PAT was negative for the full year, despite an EBITDA of over INR 4,000 crores, primarily due to depressed Petchem prices, indicating ongoing margin pressures in this segment.

The company's gas business achieved sales of over 1 million metric tons, with more than 600 outlets in its GAs and a total of 2,100 CNG stations in HPCL outlets. Management expects incremental volume growth of 20-25% (minimum 25-30%) for the gas business in FY26 and FY27. This expansion is supported by an annual capex of INR 1,000-1,100 crores, demonstrating a strong focus on this growing segment.