HPCL shares slide as West Asia conflict hits margin, BPCL reverses loss

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HPCL shares fell close to 5 per cent on Thursday after it reported a consolidated net loss of around ₹12,265 crore in Q1 FY27, as the West Asia conflict pushed up crude oil prices while PSU OMCs sold petrol, diesel and LPG below market cost, impacting margins.

The stock traded at ₹384.50 at 10.30 am on the NSE after hitting a low of ₹376.55, compared with the previous close of ₹395.20.

Brokerages divided

Macquarie maintained its outperform call on HPCL with a target price of ₹490. The brokerage described Q1FY27 as a likely trough quarter and expects near-term earnings to remain volatile for oil marketing companies.

Meanwhile, Jefferies maintained its underperform call on HPCL while raising its target price to ₹345 from ₹275. The brokerage highlighted steep losses but said the company benefited from inventory gains.

Jefferies said spot marketing margins are back in the red after the crude rally and built in a PAT loss for FY27. It also noted that HPCL trades at a premium to BPCL despite reporting three times the PAT loss of BPCL in the quarter.

BPCL in focus

BPCL posted a consolidated net loss of around ₹1,873 crore in Q1FY27. The stock traded flat at ₹315.60 on the NSE at 10.32 am after declining nearly 2.8 per cent to ₹305.10 in early trade from the previous close of ₹314. Citi maintained its buy call on BPCL with a target price of ₹350, while Macquarie retained its outperform rating with a target price of ₹370, citing BPCL’s operational strength and refining cushion despite near-term earnings pressure from crude price volatility.