Hindustan Petroleum Corporation Limited (HPCL) has strengthened its financial outlook, aiming to bring its debt-to-equity ratio below 1 by the end of FY26, following a sharp reduction in total borrowings during the first half of the fiscal year.
“As of March 31, 2025, our total debt stood at Rs. 63,323 crore, with a debt-equity ratio of 1.38. By September 30, 2025, this reduced to Rs. 55,808 crore, bringing the ratio down to 1.07,” said Vikas Kaushal, Chairman and Managing Director, HPCL, during the company’s Q2 FY26 earnings call.
Kaushal added that HPCL had earlier guided for a 1.1 ratio by March 2026, but now aims to achieve a sub-1 ratio by the end of the financial year — underscoring its strong operational efficiency and disciplined capital management.
Project Samriddhi Delivers Rs. 823 Crore in H1 Savings:
HPCL’s cost-efficiency initiative, Project Samriddhi, has yielded Rs. 823 crore in savings in the first half of FY26 — translating to about $0.5 per barrel.
“We had set a target of Rs. 1,000 crore for FY26, and we’ve already achieved more than 80%,” Kaushal said, adding that 35% of the savings are recurring, while Rs. 522 crore (50%) represents one-time savings.
Director (Finance) Rajneesh Narang said the company plans to extend this initiative through Samriddhi 2.0 from April 2026, aiming to surpass its initial cost-saving targets.
Refinery Expansion Projects Near Commissioning:
HPCL’s major refinery projects are progressing as planned. The Residue Upgradation Facility (RUF) at the Vizag refinery has completed pre-commissioning tests and will begin feed-in by late November 2025. “RUF is expected to go onstream within the next few weeks and stabilize thereafter,” Kaushal confirmed.
Meanwhile, the Barmer refinery and petrochemical complex is 89% complete, with the refinery component over 95% complete. “We’re targeting crude-in this year, subject to final testing,” Kaushal added.
Chlorine Contamination Issue Under Control:
Kaushal also addressed a chlorine contamination incident in one crude cargo that led to temporary refinery shutdowns. “It caused some damage, but we managed to contain the situation effectively,” he said.
The company faced a Rs. 150 crore loss due to exporting contaminated naphtha at a discount but expects partial recovery through claims under crude supply agreements. “Overall, it’s manageable,” Kaushal assured investors.
EBITDA on Track to Cross Rs. 40,000 Crore:
HPCL has reported an EBITDA of Rs. 28,606 crore in the last four quarters and expects to cross the Rs. 40,000 crore annual run rate in FY26.
“We are on track and aiming higher — possibly 50% beyond our initial target,” Kaushal said, highlighting that HPCL generated nearly Rs. 20,000 crore in cash flow over the past year.
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