HPCL vs BPCL vs IOC: What Drove Losses and Where They Differed in Q1 FY27

India's three state-run oil marketing companies (OMCs), Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL) and Indian Oil Corporation (IOC), reported losses for the June quarter after posting profits in the March quarter.

However, the losses were lower than market expectations as strong refining earnings helped offset some of the pressure from higher crude oil prices.

The quarter was marked by a sharp spike in crude oil prices following the US-Iran conflict, with Brent crude rising to as high as $125 per barrel. The increase weighed on earnings across the three companies. Even so, the refining business remained resilient, limiting the overall impact on profitability.

HPCL reported the largest quarterly loss of ₹11,526 crore, compared with a profit of ₹4,901 crore in the previous quarter. BPCL posted a loss of ₹3,962 crore after reporting a profit of ₹3,191 crore, while IOC recorded a loss of ₹2,661 crore against a profit of ₹11,377 crore in the March quarter.

Refining Business Limited The Impact

Refining continued to support earnings during the quarter. BPCL reported the highest gross refining margin (GRM) at $41.4 per barrel, followed by IOC at $36 per barrel and HPCL at $23.4 per barrel.

The marketing business, however, remained under pressure. According to Motilal Oswal, HPCL and BPCL reported double-digit losses in marketing margins, while the impact on IOC was relatively limited.

The brokerage also said HPCL has the highest exposure to the marketing segment, followed by BPCL.

LPG Under-Recoveries Increased

LPG under-recoveries also increased sharply during the quarter. Domestic LPG losses rose from ₹80 per cylinder in the March quarter to ₹510 per cylinder in the June quarter and remained close to ₹490 per cylinder in July.

During its earnings call, IOC said, "the situation remains highly dynamic," adding that the crude price premium "continues to fluctuate."

HPCL said there were no concerns over the availability of crude oil or LPG, but pricing remained the key challenge. The company also said it could not process the most optimal crude mix during the quarter.

BPCL's management said its refineries can process Venezuelan crude through blending, but purchases are currently made on an opportunistic basis rather than through long-term contracts.

Share Prices Down

The volatility in crude oil prices has also affected OMC stocks this year. HPCL shares have declined 21.18% so far in 2026, while BPCL and IOC are down 14.40% and 13.7%, respectively.

On Monday, HPCL shares closed at ₹393 apiece. BPCL closed at ₹326.55 while IOC closed at ₹143.09. All the shares closed marginally higher from their previous closes.