Citi has reiterated its ‘Buy’ rating on Hindustan Petroleum Corporation Ltd (HPCL) with a target price of ₹510, implying a 26.5% upside from the current market price of ₹403.00.
According to the brokerage, HPCL delivered a solid sequential performance in Q1FY26, with EBITDA rising 34% quarter-on-quarter to ₹70,000 crore and net income growing 30% to ₹44,000 crore. While gross refining margins (GRMs) came in below expectations, this was largely attributed to higher inventory losses.
Citi noted that the in-line performance was driven by stronger-than-anticipated marketing segment profitability and a sequential drop in LPG under-recoveries.
Looking ahead, Citi expects Q2 to also be strong on the back of three key drivers: lower inventory losses, improved core GRMs, and further easing of LPG under-recoveries.
Disclaimer: The views and recommendations expressed in this article are those of the brokerage firm, Citi, as reported. This does not constitute a recommendation by this publication. Investors are advised to consult a certified financial advisor before making any investment decisions.
