Hindustan Petroleum Corporation Limited (HPCL) has filed its Business Responsibility and Sustainability Report (BRSR) for the Financial Year 2025-26 with BSE Limited and the National Stock Exchange of India Limited, in compliance with Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report, dated July 31, 2026, forms part of the company's 74th Integrated Annual Report and is prepared on a standalone basis. Independent reasonable assurance of the BRSR Core disclosures was conducted by SR Asia.

Company Profile and Financial Overview

HPCL, incorporated in 1952 and headquartered at Petroleum House, 17, Jamshedji Tata Road, Mumbai 400020, is engaged in the refining, production, and marketing of petroleum products, accounting for 100% of its turnover. The company is listed on both BSE Ltd and the National Stock Exchange of India Limited. The following table summarises key entity details:

HPCL's top five products by turnover contribution are as follows:

Operations and Workforce

As at the end of FY 2025-26, HPCL operated across 508 national locations, comprising 331 plants and 177 offices, spanning 28 States and 7 Union Territories domestically and serving customers in 16 countries internationally. The company had a total permanent employee count of 7,050 (6,192 male and 858 female) and 1,206 permanent workers. Total other-than-permanent employees stood at 150, while other-than-permanent workers numbered 31,719.

The turnover rate for permanent employees in FY 2025-26 was 6.23% (male: 6.68%, female: 6.74%), compared to 5.40% in FY 2024-25. For permanent workers, the total turnover rate was 15.32% in FY 2025-26, compared to 15.14% in FY 2024-25. Well-being expenditure for employees and workers stood at ₹187.17 Crore in FY 2025-26, representing 0.039% of total revenue of ₹478543.05 Crore.

Sustainability and Energy Transition Highlights

HPCL has announced its ambition to achieve Net Zero Scope 1 and Scope 2 greenhouse gas emissions by 2040. During FY 2025-26, the company's refineries achieved energy savings of 86,542 SRFT and reduced greenhouse gas emissions by 0.28 MTCO2e. Renewable energy capacity increased to 241 MW during the year. A Green H2 Purchase Agreement (GHPA) was signed with OCIOR Green Fuels Pvt Ltd for supply of 5 KTPA of green hydrogen to Visakh Refinery on a BOO basis. The company achieved a 19.94% ethanol blending rate and added three new Compressed Biogas (CBG) plants under the Government of India's SATAT initiative, taking the total CBG plants under the scheme to 18.

Key environmental performance metrics for FY 2025-26 are presented below:

R&D, Capital Expenditure, and Procurement

HPCL directed 100% of its R&D expenditure (INR 579.41 Crore in FY 2025-26, compared to INR 463.24 Crore in FY 2024-25) towards technologies aimed at improving environmental and social impacts. Capital expenditure with environmental and social impact objectives accounted for 28.67% of total capex in FY 2025-26, up from 26.95% in FY 2024-25. On the procurement front, 59.42% of inputs were sourced sustainably (against a Government of India target of 25% from Micro and Small Enterprises). Procurement from SC/ST-owned MSEs constituted 5.10% of total procurement (by value), amounting to ₹573.20 Crore, while procurement from Women-owned MSEs constituted 4.30%, amounting to ₹483.81 Crore during FY 2025-26.

Grievance Redressal and Compliance

During FY 2025-26, HPCL received 8,762 public grievances through CPGRAMS, with 1,723 pending at year-end, primarily due to a surge in complaints in March 2026 linked to geopolitical supply disruptions in West Asia. Consumer complaints totalled 3,01,620, of which 7,761 were pending resolution at year-end — of these, 7,752 pertained to LPG customers due to the same exceptional surge. Shareholder complaints referred to HPCL by SEBI/NSE/BSE stood at 74, with 1 pending at year-end. Regarding regulatory fines, BSE and NSE each levied a fine of ₹22,43,180 (inclusive of GST), aggregating to ₹44,86,360 (inclusive of GST), for non-compliances pertaining to Board, Audit Committee, and Nomination and Remuneration Committee composition under SEBI LODR Regulations. HPCL has requested waiver of these fines, as the appointment of directors vests with the Government of India, and the requests are currently under consideration by the Stock Exchanges.

CSR and Stakeholder Engagement

HPCL's CSR programmes during FY 2025-26 benefitted a total of 40,04,393 persons across focus areas including healthcare, education, Swachh Bharat Abhiyan, environment sustainability, rural development, and skill development. CSR spending in designated aspirational districts totalled ₹2,321.23 Lakh, with the largest allocation of ₹1,902.71 Lakh directed to Visakhapatnam, Andhra Pradesh. The company also maintained active affiliations with 13 trade and industry chambers and associations at the national and state level, including FICCI, FIPI, and CII, and participated in public policy advocacy on areas such as biofuels, green hydrogen, and the National Policy on Biofuels.

Hindustan Petroleum Corporation Limited (HPCL), a Maharatna Central Public Sector Enterprise, released its 74th Integrated Annual Report for FY 2025-26, reporting a landmark year of financial and operational performance. The Corporation posted a record standalone Profit After Tax (PAT) of ₹17,175 crore, compared to ₹7,365 crore in FY 2024-25, alongside its highest-ever crude throughput, sales volumes, and refinery utilisation levels.

Key Financial Performance

HPCL's standalone financial results for FY 2025-26 reflect a significant improvement across all major metrics. The following table summarises the key financial highlights:

The Board recommended a final dividend of ₹19.25 per equity share for FY 2025-26, in addition to the interim dividend of ₹5.00 per share already paid, taking the total dividend to ₹24.25 per share. The total dividend payout ratio stood at 30.04%. Project Samriddhi, the Corporation's EBITDA improvement programme, delivered benefits of ₹1,691 crore through cost optimisation and margin enhancement initiatives.

Operational Highlights

HPCL achieved its highest-ever aggregate crude throughput of 26.04 MMT during FY 2025-26, surpassing the previous record of 25.27 MMT in FY 2024-25. Both refineries operated above design capacity at an average utilisation of 106.3%.

A landmark development during the year was the commissioning of the Residue Upgradation Facility (RUF) at Visakh Refinery in December 2025, featuring the world's first and largest LC-Max unit with 3.55 MMTPA capacity. This facility enables approximately 93% conversion of bottom-of-the-barrel residues into high-value distillates. The HPCL Rajasthan Refinery Limited (HRRL) project reached 91.6% overall physical completion by March 31, 2026, and was subsequently dedicated to the nation by the Prime Minister on July 4, 2026.

Marketing and Business Segments

HPCL achieved its highest-ever total sales volume of 51.45 MMT, representing 3.3% growth over the previous year. Key segment performances are summarised below:

The retail network expanded by 1,353 outlets during the year, taking the total to 25,098 outlets. EV charging facilities (including battery swapping stations) installed by HPCL reached 5,533, while CNG-enabled outlets stood at 2,253. HP Gas added 17.3 lakh new connections, supported by a distributor network of 6,389 distributors.

Infrastructure and Capital Investments

During FY 2025-26, HPCL commissioned four major pipeline projects, including the 216 km Barmer–Palanpur Multiproduct Pipeline (BPPL), the 90 km Bhatinda–Sangrur Multiproduct Petroleum Pipeline (BSPL), the 493 km AMPL Crude Pipeline from Mundra to HRRL, and the 74 km MCPL Crude Pipeline. The total pipeline network expanded to 5,440 km. The Supplies, Operations and Distribution (SOD) function recorded its highest-ever throughput of 63.9 MMT.

Of the total capital expenditure of ₹15,705 crore, ₹3,997 crore was invested in the Refining business and ₹7,272 crore in Marketing and corporate. Cumulative investments in subsidiaries and joint ventures stood at ₹20,877.59 crore as of March 31, 2026.

R&D, Innovation and Sustainability

HPCL's HP Green R&D Centre filed 118 new patents during FY 2025-26, taking the cumulative portfolio to 779 patent filings and 312 patents granted. R&D investment for the year stood at ₹579.41 crore. Specialty chemicals sales reached 5,048 TMT, registering 11% year-on-year growth.

On the sustainability front, HPCL achieved 19.94% ethanol blending in petrol, contributing to an estimated 4.56 million tonnes of CO2e emissions reduction. Renewable energy capacity increased to 241 MW. The Corporation maintained its commitment to achieving Net Zero Scope 1 and Scope 2 emissions by 2040. Energy savings in refineries during FY 2025-26 amounted to 86,542 SRFT, equivalent to a reduction of approximately 0.28 MTCO2e.

Credit Ratings and Shareholder Value

HPCL maintained its international credit ratings of Baa3 (Stable) from Moody's Investors Service and BBB- (Stable) from Fitch Ratings, both at par with India's Sovereign Rating. Domestically, the Corporation retained its highest ratings of AAA (Stable) for long-term and A1+ for short-term facilities from CRISIL, India Ratings, and ICRA. Market capitalisation stood at ₹71,335 crore (BSE, end of year). Total contribution to the government exchequer during FY 2025-26 amounted to ₹1,16,316.86 crore.

CSR and Human Capital

HPCL allocated ₹85.38 crore towards CSR initiatives during FY 2025-26, supporting around 130 activities and projects. The Skill Development Institute at Visakhapatnam trained a record 5,115 students during the year, with the placement rate improving from 84% in FY 2024-25 to 94% in FY 2025-26. The Corporation's workforce stood at 8,256 employees, who collectively completed over 74,268 person-days of training. The total value of human resources was assessed at ₹42,356 crore using the Lev & Schwartz model.