High Dividend Yield Stock Reports 133% YoY Increase in Net Profit; Check the Dividend

Synopsis: Shares of this stock surged 6% after the company reported a 133% YoY jump in FY26 PAT to Rs. 17,175 crore, backed by strong refining margins and a final dividend of Rs. 19.25 per share. 

The shares of the company are mainly engaged in the business of refining of crude oil and marketing of petroleum products, production of hydrocarbons as well as providing services for management of E&P Blocks are in the spotlight after it rose by 6 percent in today’s session following its Q4 results.

With a market capitalisation of Rs. 82,793 cr, the shares of Hindustan Petroleum Corporation Ltd were trading at Rs. 390 per share, jumping 6% in today’s market session, making a high of Rs. 391.50, up from its previous close of Rs. 369.60 per share.  

Financials Results 

For FY26, the company delivered a strong financial performance, with Profit After Tax (PAT) rising 133% year-on-year. Revenue from Operations increased to Rs. 4,78,543 crore from Rs. 4,66,346 crore in FY25. Gross Refining Margin (GRM) improved significantly to US$8.79 per barrel compared to US$5.74 per barrel in FY25. Standalone PAT surged to Rs. 17,175 crore from Rs. 7,365 crore, while Consolidated PAT climbed to Rs. 18,047 crore from Rs. 6,736 crore in the previous fiscal year.

In Q4 FY26, the company reported robust quarterly growth, with PAT increasing 46% year-on-year. Revenue from Operations rose to Rs. 1,23,602 crore from Rs. 1,18,334 crore in Q4 FY25. GRM strengthened to US$14.27 per barrel versus US$8.44 per barrel in the corresponding quarter last year. Standalone PAT increased to Rs. 4,902 crore from Rs. 3,355 crore, while Consolidated PAT grew to Rs. 6,065 crore compared to Rs. 3,415 crore in Q4 FY25.

Dividend and Capex Update

The Board of Directors has recommended a final dividend of Rs. 19.25 per equity share of face value Rs. 10 for FY2025–26 which is 192.5%, subject to shareholders’ approval at the Annual General Meeting (AGM). Dividend yield is 4.9%. This is in addition to the interim dividend of Rs. 5.00 per equity share already paid during FY2025–26. 

The company incurred a capital expenditure (capex) of Rs. 4,611 crore in Q4 FY26, taking the cumulative capex for FY26 to Rs. 15,705 crore. These investments were primarily directed toward strengthening refining and marketing infrastructure, along with investments in subsidiaries and joint ventures to expand capacities, develop new business lines, and enhance operational efficiencies. 

Operational performance

The company’s refineries achieved their highest-ever crude throughput of 26.04 MMT in FY26, marking a 3.0% increase from 25.27 MMT in FY25. Refineries also recorded their highest-ever distillate yield of 75.8% during the year. 

The Visakh Refinery achieved a record crude throughput of 16.04 MMT, operating at 107% of its capacity, while also delivering its highest-ever distillate yield of 74.5%. Meanwhile, the Mumbai Refinery posted its highest-ever crude throughput of 10.00 MMT, operating at 105% of its capacity during FY26.

In Q4 FY26, the refineries recorded a crude throughput of 6.43 MMT. The Visakh Refinery processed 3.89 MMT of crude, operating at 105% of its capacity, while the Mumbai Refinery processed 2.54 MMT, operating at 109% of its capacity. During the quarter, the refineries processed four new grades of crude oil, taking the total number of crude grades processed during FY26 to 52.

Hindustan Petroleum Corporation Limited (HPCL) is one of India’s leading public sector oil and gas companies, engaged in refining crude oil, marketing petroleum products, and operating an extensive network of fuel retail outlets across the country. 

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