HPCL (NSE: HINDPETRO) Shares Fall 4% While BPCL (NSE: BPCL) Gains Despite Q1 Net Losses

On 23 July 2026, shares of Hindustan Petroleum Corporation Ltd. (NSE: HINDPETRO) dropped nearly 4%, while Bharat Petroleum Corporation Ltd. (NSE: BPCL) traded higher despite both companies reporting net losses for the first quarter of FY27. The different market reactions caught many investors off guard because disappointing earnings often put pressure on oil marketing stocks. Yet, traders viewed the two results differently. Looking beyond the headline numbers helps explain why HPCL declined while BPCL managed to gain.

HPCL Q1 Results Trigger Sharp Share Price Decline

Key Financial Highlights

HPCL reported its first quarterly loss since September 2022 for the April to June FY27 quarter as higher crude oil prices weighed heavily on earnings. The company posted a standalone net loss of ₹11,526 crore, compared with a profit of ₹4,371 crore in the same period last year.

HPCL Q1 FY27 Results are out

– Revenue ₹1,45,225 cr, up 20.8% YoY

– Net loss ₹12,265 cr, against a ₹4,111 cr profit

– Raw material cost exceeded net revenue by ₹10,602 cr

This is a policy-driven loss for HPCL rather than an operating failure, but unlike BPCL it landed… pic.twitter.com/mXMbBNr43R

— CapMint (@CapMintOfficial) July 22, 2026

Despite the loss, total income increased almost 27% year over year to ₹1.40 lakh crore. The higher revenue was not enough to offset weaker fuel marketing margins. HPCL also said the conflict in West Asia pushed up crude oil costs, adding further pressure to profitability.

Why HPCL Shares Dropped Nearly 4%?

The market focused more on the sharp fall in earnings than on revenue growth. Refining operations remained relatively stable, but lower fuel marketing margins hurt the company’s overall performance. Investors also worried that earnings could stay under pressure if crude oil prices remain high. Profit booking after recent gains added to the selling pressure, sending HPCL shares lower during the session.

Why BPCL Shares Rose Despite Reporting a Net Loss?

Q1 Earnings Snapshot

BPCL reported its first quarterly loss in 15 quarters, with a standalone net loss of ₹3,962 crore compared with a profit of ₹6,124 crore a year earlier. Even so, revenue rose 23% year over year to ₹1.59 lakh crore, supported by steady demand for fuel products. Like HPCL, the company faced pressure from higher crude oil prices and weaker fuel marketing margins.

What Supported the Stock?

Investors looked past the quarterly loss and paid more attention to BPCL’s revenue growth and the possibility of better margins in the coming quarters if crude oil prices soften. Reports that the government is considering relief measures for state-run oil marketing companies also lifted sentiment. Some market analysts believe much of the weak quarterly performance was already reflected in BPCL’s valuation, which helped the stock outperform HPCL.

What’s Driving Pressure on India’s Oil Marketing Companies?

Why are Oil Marketing Companies Under Pressure?

The biggest challenge for India’s oil marketing companies is the sharp increase in global crude oil prices following tensions in West Asia. Higher input costs have squeezed fuel marketing margins because retail fuel prices have not risen at the same pace. LPG under-recoveries have added another layer of pressure.

India's Oil Ministry is working on a proposal to compensate state-run oil mktg Co's for losses incurred from selling fuel below market rates during Ap–June qtr.
Hopes of recovering these losses have diminished as crude oil prices have risen again!#Fuel #GlobalEconomy

— mahesh dwarapu (@maheshdwarapu1) July 22, 2026

Analysts had earlier estimated that India’s three largest fuel retailers could report combined EBITDA losses of as much as ₹47,700 crore in the first quarter of FY27 if crude prices remained elevated.

For investors, crude oil prices, government policy decisions and possible fuel price revisions will continue to influence the performance of HPCL and BPCL shares.

What Investors Should Watch Next?

Investors will be watching Brent crude prices, any government compensation for oil marketing companies, and changes in petrol and diesel prices over the coming months. Second-quarter results should provide a clearer picture of whether fuel marketing margins are recovering.

According to Meyka, the near-term outlook for both stocks depends more on crude oil prices than on revenue growth. Meyka’s AI stock analysis tool suggests that better fuel marketing margins could improve investor sentiment. Other analysts also expect government policy support to remain one of the main factors affecting both companies.

Conclusion

HPCL and BPCL both reported weak quarterly results, but the market reacted differently. HPCL came under pressure because of its larger earnings hit, while BPCL benefited from expectations that revenue growth and possible government support could help its recovery. For now, crude oil prices, fuel marketing margins and policy decisions remain the main factors that are likely to drive both stocks.

Disclaimer:

The content shared by Meyka AI PTY LTD is for research and informational purposes only. Meyka is not a financial advisory service, and the information provided should not be treated as investment or trading advice.