Brokerages CLSA and Jefferies have maintained an ‘Underperform’ rating on Hindustan Petroleum Corporation Ltd (HPCL), citing broad-based weakness in Q1FY26 and an uncertain outlook for refining profitability.
CLSA cut its target price to ₹340, pointing to a significant miss on both refining and marketing segments. The brokerage also noted a surprise forex loss that further dragged PAT. Total losses on the sale of domestic LPG stood at ₹2,150 crore in the quarter, pushing cumulative LPG losses to ₹13,040 crore since FY25 began.
Jefferies, meanwhile, raised its target slightly to ₹360 but retained its ‘Underperform’ stance. It said Q1 EBITDA was 11% below estimates, primarily due to weak refining performance. The outlook for refining profitability remains weak, as challenges in sourcing discounted Russian crude persist. The brokerage also noted that the government did not compensate for LPG losses in Q1.
Jefferies added that HPCL’s valuation appears full at 1.5x forward price-to-book.
HPCL shares last closed at ₹403.00.
Disclaimer: The views and recommendations expressed in this article are those of the respective brokerage firms—CLSA and Jefferies—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.
