HPCL's Stock Surge: Profits Tripled

Hindustan Petroleum Corporation Ltd (HPCL) reported a significant increase in its December quarter net profit, thanks to soaring marketing margins. As a result, HPCL shares rose nearly 5%, reflecting investor confidence. Despite steady operational income, notable growth in downstream fuel retailing profits drove this financial success.

In a clear sign of investor confidence, shares of Hindustan Petroleum Corporation Ltd (HPCL) surged nearly 5% on Friday following the company's announcement of more than tripling its December quarter net profit. The impressive performance was largely attributed to surging marketing margins.

According to its recent filing, HPCL's consolidated net profit for the third quarter of FY25 rose to Rs 2,543.65 crore, compared to Rs 712.84 crore during the same period last year. On a quarter-on-quarter basis, profits also increased from Rs 142.67 crore reported in the July-September 2024 quarter.

Significantly, pre-tax earnings from the company's downstream fuel retailing business saw a dramatic rise, reaching Rs 4,566.07 crore in the third quarter, up from Rs 981.02 crore a year prior and Rs 1,285.96 crore in the second quarter, despite overall income from operations remaining steady at Rs 1.18 lakh crore.

(With inputs from agencies.)