Hindustan Petroleum Corporation Ltd

A Step Closer to Urjawan Bharat, Viksit Bharat

Dear Stakeholder(s),

It gives me great pleasure to present the 73^rd Annual Report of your Company. Having assumed leadership of this esteemed Corporation in March 2025, it is an honour and a privilege to lay before you the performance of HPCL for FY 2024-25.

The year marked a defining chapter in HPCL's splendid journey, characterised by robust financial and operational performance, underpinned by the values, vision, and resilience that have made HPCL one of India's most respected and trusted energy companies.

With over five decades of operations, HPCL's legacy is built on innovation, national progress, and the ability to energise millions. Over the years, we have achieved several key milestones: becoming the second-largest LPG marketer and operator of the second-largest retail outlet network in the country, establishing the second-largest cross-country product pipeline infrastructure, commanding 13.87% of India's refining capacity, and holding a 20.54% share of the domestic petroleum products market. These accomplishments reflect our resolute focus on excellence and our deep-rooted role in driving India's growth.

At the heart of our success lies the trust of our stakeholders. I extend my sincere gratitude to our customers, shareholders, business partners, and other stakeholders for their continued support. Your confidence in our mission motivates us to continually elevate our performance and embrace responsibility, even amidst challenges.

Strong Growth Amid Global Volatility

The world economy exhibited a moderate growth in 2024 amid persistent geopolitical tensions, inflationary pressures, and tighter monetary conditions. As regards India, the economy remained resilient, driven by strong domestic demand, infrastructure-led capital expenditure and proactive policy support. The global economic volatility and geopolitical tensions affected crude oil prices and also supply chains. HPCL navigated these challenges by advancing its integrated strategy in refining, marketing, digitalisation, R&D, and sustainability and achieved strong financial and operational results in FY 2024-25.

In FY 2024-25, HPCL reported a standalone profit after tax of H 7,365 Crore, supported by operational efficiency and financial discipline. Gross sales reached H 4,64,247 Crore, with total product volumes reaching 49.82 million metric tons (MMT) from 46.82 MMT in the previous year. Profit Before Tax was H 9,621 Crore, and Earnings Per Share stood at H34.61. Despite global challenges & price volatilities, the average gross refining margin stood at US$ 5.74 per barrel, demonstrating HPCL's ability to optimise costs, diversify crude sourcing, and adapt to shifting supply conditions. These achievements reflect our strategic acumen, disciplined execution, and a commitment to innovation, sustainability, and inclusive growth. The Board has recommended a final dividend of H 10.50 per equity share.

HPCL's strong financial fundamentals are underscored by excellent credit ratings from leading agencies such as Moody's and Fitch, both in line with India's sovereign rating. Domestically, the Company's long-term debt secured the highest possible rating from CRISIL, India Ratings, and ICRA. These ratings re-affirm HPCL's financial stability and its resilience in a challenging global landscape.

Refining Excellence - Shaping the Future

Your Company's refineries continued to serve as the bedrock of operational strength, delivering record performance in FY 2024-25. Crude throughput reached an all-time high of 25.27 MMT, with Visakh Refinery processing 15.31 MMT and Mumbai Refinery achieving 9.96 MMT, both setting new performance benchmarks.

This year, your Company took a major step forward by expanding its crude basket to 178 global grades, empowering us to navigate the complexities of the global energy market with greater dexterity and cost efficiency. Our vision for the future of refining is taking shape at our Visakh Refinery with the completed units as part of the Visakh Refinery Modernisation Project (VRMP) delivering superior performance and efficiency. The crown jewel of this project, i.e., the Residue Upgradation Facility (RUF), has achieved mechanical completion and is in an advanced stage of commissioning. With the usage of advanced LC-MAX technology, your Company is on the cusp of operating one of the most energy-efficient hydrocrackers in the world, turning lower-value inputs into high-value products and setting new benchmarks for the entire industry.

At Mumbai Refinery, technological advancements included the production of De-Aromatised Kerosene (DAK) solvents and progress on the pharma-grade hexane project, enhancing HPCL's specialty product portfolio to meet evolving industrial demands.

Marketing Excellence across Market Segments

In FY 2024-25, Your Company achieved its highest-ever sales volume of 49.82 MMT, registering a 6.4% YoY growth, driven by strong performance across its various market segment businesses.

The Retail Strategic Business Unit (SBU) delivered exceptional results, reaching a sales volume of 29.98 MMT. The retail network expanded with 1,725 new outlets, increasing our footprint to 23,747. To support green mobility, HPCL commissioned 361 new CNG stations, bringing the total to 2,038, and installed 2,412 new EV charging points, increasing the total to 5,976, reinforcing our commitment to a cleaner transportation ecosystem.

To solidify our leadership in highway retailing, we focused on creating a comprehensive ecosystem catering to the diverse needs of travellers and commercial vehicle operators. Our network of Wayside Amenities (WSAs) was expanded with the commissioning of 14 new outlets, bringing the total to 39 locations. During the year, your Company deepened the engagement with the crucial commercial vehicle segment by establishing 60 Apna Ghar' facilities. These facilities continued to play a critical role in enhancing esteemed customers' travel experience by ensuring safety and security and fostering community engagement along highways and major roads. Furthermore, we enriched the overall customer experience by enhancing our non-fuel retail portfolio through strategic alliances with leading national and international Quick Service Restaurant (QSR) brands.

HP Gas, a trusted brand among domestic and non-domestic LPG users, now serves over 9.7 Crore customers by adding 12.85 Lakh new customers in FY 2024-25. During the year, LPG achieved its highest-ever sales of 8.95 MMT, surpassing the previous record of 8.56 MMT and marking a 4.5% year-on- year growth.

In FY 2024-25, Industrial & Consumer (I&C) Sales reached 6.04 MMT, with robust performance in HSD, Bitumen, and Furnace Oil, each surpassing the 1 MMT mark. Growth was driven by a dual strategy of retaining core customers and expanding into the MSME sector, supported by a strategic partnership with the National Small Industries Corporation (NSIC) to serve SME clients. The I&C SBU also expanded its export footprint, supplying furnace oil, bitumen, hexane, and JBO to Nepal, Bhutan, and other regional markets.

HPCL further strengthened its position across the natural gas value chain, from LNG imports and regasification to City Gas Distribution (CGD) networks and bulk marketing. In CGD, HPCL and its JVs are authorised in 25 GAs across 14 states. Your Company commissioned 129 new CNG stations in the Geographical Areas (GA) allotted to HPCL, increasing the total to 475. Your Company significantly strengthened its position in the natural gas sector through the commissioning of the 5 MMTPA LNG terminal at Chhara port in Gujarat by its wholly-owned subsidiary, 'HPCL LNG Limited'. It also secured term contracts with domestic producers, initiated spot LNG imports, and signed MoUs to strengthen its gas sourcing and trading footprint.

HP Aviation experienced strong growth, with a 24.5% increase in ATF sales, reaching 1.09 MMT in FY 2024-25 and serving both domestic and international airlines. This growth was driven by focused customer service and also by expanding the network of Aviation Service Facilities (ASFs). During the year, Aviation SBU partnered with Boeing to advance India's Sustainable Aviation Fuel (SAF) ecosystem, further reinforcing its commitment to sustainable aviation solutions.

The Petrochemicals business, led by the 'HP Durapol' brand, sold 150 TMT of polymers across six grades in key markets such as Maharashtra, Gujarat, and Madhya Pradesh. This pre-marketing initiative provided valuable market insights ahead of the commissioning of upcoming 9 MMTPA Refinery and Petrochemical Complex in Rajasthan.

The reliability of our national supply chain is a cornerstone of our business, a commitment upheld by our Supplies, Operations & Distribution (SOD) SBU. This year, the SBU achieved exceptional operational excellence, delivering a record throughput of 61.1 MMT to ensure seamless fuel availability across the country. This performance was anchored by the robust network of 80 terminals and depots, which forms the core of HPCL's distribution network. The Pipeline SBU operated a 5,134 km network with a capacity of 35.2 MMTPA, achieving a record throughput of 26.9 MMT.

To further strengthen its infrastructure, your Company expanded the reach by commissioning new depot at Dimapur and enhanced the capacity and service capabilities of its key facilities at Raipur, Sangrur and Vashi. To facilitate evacuation of enhanced production of white oils from Visakh Refinery, the project of setting up a 540 km long cross-country pipeline from Visakh Refinery to Raipur POL depot is in progress. To strengthen the LPG import infrastructure in the country, your Company is setting up India's largest LPG cavern of 80 TMT capacity at Mangalore in the state of Karnataka.

Driving Innovation

Innovation and technology remained central to our growth strategy in FY 2024-25, driving both sustainable industrial advancements and superior customer engagement. Our commitment to pioneering research was spearheaded by the HP Green R&D Centre (HPGRDC), which filed 114 new patents, expanding our intellectual property portfolio to a total of 661. We continue to innovate and develop solutions for both existing and emerging business areas, with the successful development and demonstration of 20 new products in 2024-25.

Your Company continues to foster a culture of innovation by partnering with startups to drive cutting-edge solutions across the oil and gas value chain. As of March 31, 2025, 27 startups have been supported with a cumulative disbursal of around H 27.2 crore, enabling advancements in digitalization, sustainability, and energy transition. Going forward, your Company aims to further strengthen its engagement with the startup ecosystem by identifying high-impact, technology- driven ventures and expanding support mechanisms to accelerate innovation across emerging areas of the energy sector.

Digital Transformation

On the digital front, your Company's flagship digital transformation initiative, 'Project Parikalp', continued to transfigure operations with automation, AI, loT, and advanced analytics. For our customers, your Company significantly enhanced the HP Pay App with intuitive features like voice- enabled payments, seamless UPI integration, and simplified e-KYC onboarding to deliver a superior experience.

A centralized, technology-enabled hub, the "Novex Digital Nerve Centre," was set up in our Mumbai based Marketing Headquarters, enabling collaborative, data-based decisions, benchmarking, and governance of connected events.

Clean Energy Transition

In alignment with India's accelerated energy transition, your Company is proactively transforming to be future-ready, with a strategy centered on sustainability and innovation. The plans are centered on three key pillars: expanding presence in renewables, biofuels, and green hydrogen.

On the renewables front, your Company's 100.9 MW capacity of wind assets generated 143.2 million units of green power in 2024-25. The 50.4 MW wind farm-located in Tejuva, Rajasthan- secured clearance for open access green power sales, opening new revenue channels. HPCL is further expanding the green footprint through wholly owned subsidiary HPCL Renewable & Green Energy Ltd. (HPRGE), which is implementing approximately 220+ MWp of renewable projects to meet the captive energy needs.

Towards strengthening the biofuels portfolio, your Company is setting up a 100 KLPD second-generation ethanol plant at Bhatinda, which is in an advanced stage of completion. Commercial sale is being continued from HPCL's first Compressed Bio Gas (CBG) plant in Budaun, Uttar Pradesh. Aligning with the India's Ethanol Blended Petrol (EBP) Programme, your Company achieved ethanol blending of 16.7% in petrol for 2024-25, surpassing the previous 12% benchmark. HPCL is actively participating in the SATAT (Sustainable Alternative Towards Affordable Transportation) initiatives to promote CBG, and 17 CBG plants were commissioned as of March 2025, with total yearly sales of about 3.3 TMT.

HPCL is taking a pioneering role in the green hydrogen economy. Your Company commissioned the first-ever green hydrogen plant in an Indian refinery at Visakh, with a 370 TPA capacity. To accelerate adoption, we published a global tender to procure an additional 5 KTPA of green hydrogen and are committed to progressively increasing the green hydrogen consumption in refineries.

Accelerating towards Net Zero by 2040

In support of India's national vision to achieve net zero by 2070, HPCL has developed its own clear and accelerated roadmap to decarbonisation. Our strategy is founded on leveraging operational efficiency, cleaner fuels, renewable energy, green hydrogen, and CCUS technologies to systematically reduce our carbon footprint. Through these focused initiatives, we are on a definitive path to neutralise our current emissions and achieve Net Zero status by 2040. This commitment underscores our role as a key driver of India's energy transition and our focus on generating sustainable value in a low-carbon future.

Strengthening the value chain through strategic partnerships

Your Company has a strong legacy of strategically setting up joint ventures and subsidiaries across the oil and gas value chain. These partnerships have been instrumental in enhancing operational efficiencies, de-risking investments, expanding our market presence, and accelerating entry into emerging business domains. During 2024-25, our joint ventures and subsidiaries were pivotal in expanding our energy value chain. HPCL-Mittal Energy Limited (HMEL) achieved record performance, with its highest-ever crude throughput of 13.045 MMT and revenue of H 99,720 Crore. Further, diversification into petrochemicals is advancing steadily through HPCL Rajasthan Refinery Limited (HRRL), which is on track for commissioning in 2025-26. The other joint ventures and subsidiaries of HPCL across various sectors also continue to play the pivotal role in driving growth and enhancing value through consistent excellence in their respective operational spheres.

Investing in People, Inspiring Excellence

Our greatest asset is our dedicated workforce of over 8,000 employees, whose commitment to excellence, integrity, and innovation drives our strong performance. We foster a culture of empowerment and are building a future-ready workforce grounded in agility and resilience to meet the challenges of the evolving energy landscape. This people-first approach, which ensures safety and equitable treatment, extends to our contractual staff as well. Furthermore, we are reinforcing our role as a catalyst for national development and a driver of Viksit Bharat by expanding our academia-industry partnerships, internships, and apprenticeships.

Driving Societal Progress through Responsible Action

At HPCL, we are steadfast in our belief that our success is intertwined with societal progress, making Corporate Social Responsibility (CSR) a central pillar of our motto of inclusive growth. During the year, your Company spent about H 87 Crore in targeted projects across India, focusing on key areas like education, healthcare, and community development to empower disadvantaged sections of society.

The flagship initiatives continue to make a meaningful difference. 'Project Super-50' provided free coaching to promising students, while 'Project Dhanwantari' ensured vital healthcare access for remote population. The 'Swachhta Pakhwada' drives engaged over 20 lakh people, highlighting our deep community engagement and commitment to building a healthier society. Your Company's CSR initiatives have positively impacted over 40 lakh lives across various focus areas, reaffirming our commitment to "Delivering Happiness" and also supporting inclusive and sustainable development.

Strategy towards a Resilient Organisation

Looking ahead, our path is defined by a comprehensive strategy designed to build a future-ready and resilient organisation. Our approach is anchored by two core objectives: fortifying our leadership in the refining and marketing business while simultaneously pursuing strategic expansion into high-growth sectors like petrochemicals, natural gas, and renewables. This growth is underpinned by an accelerated digital transformation and a sharpened focus on ESG performance, guided by our explicit roadmap toward Net Zero. As global momentum builds around the energy transition, this strategic framework ensures we are positioned not just to adapt but to lead and contribute meaningfully, delivering sustainable value for years to come.

Fostering a Safer, Greener, and More Responsible Future

At HPCL, a deep commitment to safety, sustainability, and governance is a cornerstone of our operational ethos. In FY 2024-25, this commitment was demonstrated by enhancing our Health, Safety, and Environment (HSE) standards, which included delivering over 10,000 man-days of safety training and deploying advanced digital tools like immersive AR/VR modules and SAP-based safety management systems. Your Company continues to participate in 'Mission LiFE', driving individual behaviour change for global climate action and aligning with the nation's sustainable development goals.

Navigating Turmoil, Securing Tomorrow

The fiscal year 2024-25 was characterised by significant geopolitical turbulence, which presented both challenges and opportunities for your Company. Navigating through this period, your Company have treaded the path of a continuous and delicate balancing act in its procurement strategies and financial management, particularly concerning crude procurement and portfolio diversification. During the year, we strategically diversified our crude oil procurement from 41 countries, expanding our sourcing portfolio to include suppliers from Africa and the Americas, thereby mitigating the risks associated with over-reliance on any single region and contributing to the nation's energy security. Your Company is channelling the lessons learned into tangible actions by increasing its investments in alternative fuels and renewable energy, a strategic pivot designed to ensure long-term energy security and de-risk its balance sheet against future global uncertainties.

India's vision of becoming a US$30 trillion economy by 2047 under the 'Viksit Bharat' mission marks a defining phase in the country's transformation. Powering this growth is a strong and sustainable energy foundation. As the epicenter of global energy demand increasingly shifts towards India, your Company is playing a pivotal role-through strategic investments, active participation in green energy—firmly positioning itself as a key enabler of the nation's growth journey.

Multiple megatrends are shaping the priorities of businesses, such as technology, Artificial Intelligence, green energy, supply chain capabilities, talent, etc. Your Company is making significant investments and building capacities during this phase of rapid technological shifts and the energy transition scenario. HPCL remains resolute in delivering consistent and responsible growth through sustainable business models.

Gratitude

In conclusion, I extend my deepest gratitude to the Ministry of Petroleum and Natural Gas and other ministries for their invaluable guidance, to our Board of Directors for their insightful governance, and to every member of 'Team HPCL' for their relentless commitment, which has built the strong foundation we stand on today. I also thank our valued customers, investors, shareholders, partners and all other stakeholders for the trust you place in our vision.

I am confident that by harnessing our collective strengths, we will not just navigate the future but actively shape it. Together, as we pursue the paths of Urjawan Bharat, Viksit Bharat, we will continue to fuel India's aspirations with innovation, purpose, and responsibility, striving to build a prosperous and sustainable future for the nation.