HPCL Boosts Profits Amid Unpaid LPG Subsidies Surge

Hindustan Petroleum Corporation Ltd reported a 26% increase in its March quarter net profit, driven by better refining margins. Despite unpaid LPG subsidies, profits for the fiscal year were aided by high throughput in refineries. The net profit for the fiscal year, however, halved due to earlier quarter challenges.

Devdiscourse News Desk | New Delhi | Updated: 06-05-2025 19:52 IST | Created: 06-05-2025 19:52 IST

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Hindustan Petroleum Corporation Ltd (HPCL) has announced a remarkable 26% rise in its net profit for the March quarter, thanks to higher refining margins compensating for unpaid LPG subsidies. The company's consolidated net profit reached Rs 3,415.44 crore in the January-March period, compared to Rs 2,709.31 crore a year ago.

This growth comes despite a significant challenge: Rs 3,295.6 crore in unpaid subsidies for domestic cooking gas (LPG). HPCL and other state-owned fuel retailers have been selling LPG below the cost price, with the government yet to provide subsidies for the 2024-25 fiscal year. The company still managed to achieve its highest-ever quarterly refinery throughput.

Additionally, HPCL commenced operations of its 5 million tonne LNG import terminal in Gujarat, contributing to the robust performance throughout the fiscal year. However, the net profit for the year halved due to lower earnings in earlier quarters, and a final dividend of Rs 10.50 per equity share was announced.

(With inputs from agencies.)