Shares Hindustan Petroleum Corporation Limited (HPCL) declined nearly 5% during the trading session on Thursday, July 23 after the oil marketing company announced first quarter earnings for fiscal 2027. The OMC posted a consolidated net loss for the first quarter of FY27, lower than analysts had expected.
The drop in share price also come as brokerages remained mixed on HPCL's Q1 numbers, highlighting a "trough" quarter amid crude oil price linked volatility.
HPCL shares fell as much as 4.72% to Rs 376.55 apiece. The scrip was trading 2.54% lower by 10:08 am, while the Nifty 50 index was down 0.18%.
Revenue from operations rose 17.4% quarter-on-quarter to Rs 1.40 lakh crore from Rs 1.15 lakh crore, exceeding the Bloomberg estimate of Rs 1.29 lakh crore.
The company reported an Ebitda loss of Rs 16,141 crore during the quarter, against an Ebitda profit of Rs 8,979 crore in the previous quarter. The operating loss was, however, narrower than the Bloomberg estimate of Rs 12,672 crore.
Jefferies maintained its Underperform rating on the stock, although it did hike its target price to Rs 345 (up from Rs 275)
Jefferies highlighted that HPCL reported steep losses during the quarter, which were only partially buffered by inventory gains. Furthermore, the recent rally in crude oil prices has pushed spot marketing margins firmly back into negative territory.
The brokerage has officially built a Profit After Tax (PAT) loss into its FY27 estimates for the company.
Jefferies noted that HPCL is currently trading at a premium to its peer Bharat Petroleum Corporation Limited (BPCL), despite HPCL reporting a PAT loss that was three times larger than BPCL's in the recently concluded quarter.
Macquarie has retained its Outperform rating on HPCL, assigning a target price of Rs 490 per share. The brokerage characterized the recent earnings as a likely "trough quarter'' for HPCL. It also cautioned that near-term earnings across the OMCspace are expected to remain volatile due to ongoing fluctuations in global energy markets.
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