HPCL Q4 Results FY25: Net Profit Jumps 18% YoY to ₹3,355 Crore; ₹10.50 Dividend Declared
HPCL Q4 Results : Hindustan Petroleum Corporation Limited (HPCL), one of India’s leading oil marketing companies (OMC), has posted a robust 18% year-on-year (YoY) growth in its standalone net profit for the fourth quarter (Q4) of financial year 2024-25, reaching ₹3,355 crore. This is a significant improvement from ₹2,843 crore reported in the same quarter last year, reflecting strong operational performance despite a decline in revenue.
Revenue Decline, but Profit Surges
While HPCL’s bottom line impressed investors, its total income for the January–March 2025 quarter slipped by 2.7% YoY to ₹1,19,126 crore, down from ₹1,22,386 crore in Q4 FY24. This drop was largely attributed to lower realization in petroleum product prices compared to last year.
However, the company managed to offset the revenue shortfall with improved margins and higher operational efficiency, leading to a double-digit profit growth. This is especially commendable given the volatile global crude oil environment and inflationary pressures.
LPG Pricing Pressure & Government Intervention
HPCL highlighted that it has a negative buffer of ₹10,894.53 crore due to the gap between the market-determined price (MDP) of LPG cylinders and the effective cost to consumer (ECC). The Ministry of Petroleum and Natural Gas (MoPNG) has directed oil marketing companies like HPCL to keep this amount in a separate buffer account for future adjustments.
Crucially, the company has not recognized this amount as revenue, stating that there was no authorization from the Government of India (GOI) to do so. This prudent accounting approach ensures transparency but also reflects the burden public sector OMCs bear in subsidizing essential fuels for consumers.
Operational Highlights
- Crude throughput for the quarter stood at 6.74 million metric tonnes (MMT), up from 5.84 MMT in the same quarter last year. This indicates efficient refining operations and capacity utilization.
- Domestic market sales rose to 12.11 MMT, compared to 11.80 MMT in Q4 FY24.
- Export sales also increased slightly to 0.59 MMT from 0.53 MMT last year.
Dividend Bonanza for Shareholders
In a positive move for shareholders, HPCL has declared a dividend of ₹10.50 per share for FY25. The record date for dividend eligibility has been set as August 14, 2025.
Over the last 12 months, HPCL has delivered an equity dividend of ₹11 per share, translating into a dividend yield of 5.29%, a significant payout for investors seeking income from PSU stocks.
Market Reaction and Valuation Snapshot
Despite the strong Q4 numbers, HPCL’s stock price closed 3.3% lower at ₹396.90 on the BSE on May 6, possibly reflecting broader market sentiments or short-term profit booking.
Here’s a quick look at the key stock metrics:
| Metric | Value |
|---|---|
| Market Capitalization | ₹84,340 crore |
| Current Share Price | ₹397 |
| 52-Week High/Low | ₹457 / ₹288 |
| Stock P/E | 14.0 |
| Book Value | ₹216 |
| Dividend Yield | 5.29% |
| Return on Capital Employed (ROCE) | 21.3% |
| Return on Equity (ROE) | 40.4% |
| Face Value | ₹10 |
These fundamentals indicate a reasonably valued stock with a strong return profile and high dividend payout, making it attractive for long-term investors and income seekers.
📊 Financial Summary at a Glance
| Particulars (₹ Crore) | Q4 FY25 | Q4 FY24 | % Change YoY |
|---|---|---|---|
| Net Profit | 3,355 | 2,843 | +18% |
| Total Income | 1,19,126 | 1,22,386 | -2.7% |
| Crude Throughput (MMT) | 6.74 | 5.84 | +15.4% |
| Domestic Sales (MMT) | 12.11 | 11.80 | +2.6% |
| Export Sales (MMT) | 0.59 | 0.53 | +11.3% |
| Dividend Declared | ₹10.50 | ₹11.00 | — |
🧠 Frequently Asked Questions (FAQs)
Q1: What was HPCL’s Q4 FY25 net profit?
A: HPCL reported a net profit of ₹3,355 crore in Q4 FY25, up 18% from ₹2,843 crore in the same quarter last year.
Q2: Why did HPCL’s revenue decline even though profits rose?
A: The revenue fell due to lower petroleum product prices, but profits rose on account of improved refining margins and operational efficiency.
Q3: What is the negative LPG pricing buffer mentioned by HPCL?
A: HPCL has a negative buffer of ₹10,894.53 crore due to the gap between market LPG prices and the government-fixed price, which hasn’t been recognized as revenue yet.
Q4: Has HPCL declared any dividend for FY25?
A: Yes, the company declared a dividend of ₹10.50 per share, with August 14, 2025, as the record date.
Q5: How has HPCL stock performed recently?
A: On May 6, HPCL’s share closed 3.3% lower at ₹396.90 despite strong earnings.
Q6: Is HPCL a good dividend stock?
A: With a dividend yield of 5.29%, HPCL offers a strong income potential for long-term investors.
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