Synopsis: Chennai Petroleum Corporation Ltd reported a dramatic turnaround in Q2FY26, posting a profit of Rs. 719 crore against a loss in the previous year. Revenue grew over 35 percent year-on-year to Rs. 16,327 crore, supported by margin recovery.
A petroleum refining stock witnessed strong buying interest after posting a remarkable turnaround in its quarterly results. Investors reacted positively as the company swung from a loss in the previous period to a significant profit, supported by higher operating margins.
Chennai Petroleum Corporation Ltd (CPCL), with a market capitalisation of Rs. 11,525.74 crore, opened at Rs. 781.85 against the previous close of Rs. 772.45 and touched an intraday high of Rs. 829.85, marking a gain of 7.43 percent from the previous session’s close.
What’s the News?
Chennai Petroleum Corporation Limited announced its Q2FY26 results, reporting a robust quarter driven by improved margins and higher throughput.
Sequentially, revenue from operations rose from Rs. 14,812 crore in Q1FY26 to Rs. 16,327 crore in Q2FY26, reflecting a 10.2 percent increase quarter-on-quarter. Operating profit surged sharply from Rs. 99 crore to Rs. 1,144 crore, registering a growth of over 1,055 percent QoQ, as operating profit margin improved from 1 percent to 7 percent.
Profit before tax also saw a significant turnaround from a loss of Rs. 64 crore in the previous quarter to a profit of Rs. 982 crore, while net profit improved from a loss of Rs. 40 crore to a profit of Rs. 719 crore. Earnings per share rose from Rs. -2.69 in Q1FY26 to Rs. 48.30 in Q2FY26.
On a year-on-year basis, the company delivered an exceptional recovery compared to the same quarter last year. Revenue increased from Rs. 12,086 crore in Q2FY25 to Rs. 16,327 crore in Q2FY26, a 35.1 percent rise. The operating profit turned around from a loss of Rs. 675 crore to a profit of Rs. 1,144 crore, reflecting a massive improvement in operating leverage, with OPM rising from -6 percent to 7 percent.
Profit before tax jumped from a loss of Rs. 862 crore to a profit of Rs. 982 crore, while net profit rose from a loss of Rs. 634 crore to a profit of Rs. 719 crore. The company’s EPS improved substantially from Rs. -42.55 to Rs. 48.30, marking a complete reversal in profitability over the year.
About the Company
Chennai Petroleum Corporation Limited, incorporated in 1965 and headquartered in Chennai, is engaged in the refining and supply of petroleum products across India. Its product portfolio includes liquefied petroleum gas, naphtha, gasoline, kerosene, aviation turbine fuel, diesel, and various fuel oils. The company also produces bitumen, lube base stocks, paraffin wax, sulphur, and petrochemical feedstocks such as propylene and poly butene feedstock. CPCL was formerly known as Madras Refineries Limited before adopting its current name in June 2000. It operates as a subsidiary of Indian Oil Corporation Limited, catering to both domestic and defence fuel requirements, including specialized fuels for aviation and missile applications.
-Manan Gangwar
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