23-Oct-2026 07:53:13

CITI on HPCL ; Buy, TP Rs 435

2QFY27 EBITDA recovered sharply qoq from –Rs167bn to Rs85bn, well ahead of Rs38bn estimate. While sequential improvement was supported by lower marketing losses and a reduction in LPG under-recoveries, beat versus expectations was primarily driven by stronger-than-anticipated refining performance and, potentially, inventory gains Reported net profit similarly rebounded to Rs35bn from –Rs115bn in 1QFY27, exceeding both our Rs20bn estimate and consensus expectations for another unprofitable quarter. Recent rise in crude prices and freight rates has once again widened OMCs’ marketing losses which, strengthens case for further fuel price hikes.

HINDUSTAN PETROLEUM CORP

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