Hindustan Petroleum Corporation Limited has set an ambitious target to achieve a refining capacity of 45.3 million metric tonnes per annum (MMTPA) by fiscal year 2028, marking a significant expansion in the company's operational capabilities.

Strategic Capacity Expansion

The state-owned oil refining company's announcement outlines its commitment to substantially increase its refining infrastructure over the coming years. The target capacity of 45.3 MMTPA by FY28 represents a strategic milestone in HPCL's long-term growth plans.

Growth Trajectory

This capacity expansion initiative demonstrates HPCL's focus on strengthening its position in India's energy sector. The company's strategic planning aims to align its refining capabilities with the anticipated growth in domestic energy consumption and market demand.

Market Positioning

The announced capacity target reflects HPCL's commitment to maintaining its competitive edge in the Indian petroleum refining industry. By establishing this clear timeline and capacity goal, the company is positioning itself to meet future energy requirements while expanding its operational footprint across the country.

Hindustan Petroleum Corporation Limited reported strong financial results for Q3FY26, with consolidated net profit rising 58% year-on-year to ₹4,011 crore compared to ₹2,544 crore in the corresponding quarter of the previous financial year. The state-run oil marketing company also demonstrated solid sequential growth momentum.

Financial Performance Highlights

The company's revenue performance showed steady growth across different time periods. Sequential growth was particularly robust, with profit after tax increasing 4% from ₹3,859 crore in Q2FY26.

Refining Operations Excellence

The company's refining segment delivered exceptional performance with significant improvements in margins and throughput. Gross Refining Margin in Q3FY26 reached $8.85 per barrel, substantially higher than $6.01 per barrel recorded in Q3FY25. For the nine-month period of FY26, GRM stood at $6.91 per barrel, up from $4.73 per barrel in the corresponding period last year.

Both refineries achieved record-breaking crude throughput during the nine-month period. The refineries collectively processed 19.61 MMT of crude during 9MFY26, representing a 5.8% increase from 18.53 MMT in 9MFY25.

For Q3FY26 specifically, the refineries processed 6.38 MMT of crude, with Visakh Refinery contributing 4.01 MMT at 106% capacity utilization and Mumbai refinery processing 2.37 MMT at 99% capacity utilization. The company expanded its crude processing capabilities by introducing two new grades during Q3FY26, bringing the total number of new grades processed during 9MFY26 to seven.

Sales Volume and Market Performance

HPCL's sales performance reflected steady demand across key product categories. Q3FY26 sales including exports totaled 13.34 MMT, marking a 3.7% year-on-year increase. Domestic sales contributed with 3.1% growth during the quarter.

Network Expansion

The company continued expanding its retail infrastructure during the quarter. HPCL commissioned 321 new retail outlets in Q3FY26, bringing the total network to 24,572 outlets. The LPG distribution network also grew with five new distributors added during the quarter, taking the total count to 6,389 distributors across the country.

HPCL's Q3FY26 results demonstrate strong operational performance across refining, marketing, and network expansion activities, supported by improved refining margins and robust demand fundamentals in the domestic market.