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Chennai Petroleum Corporation Ltd
NSE: CHENNPETRO BSE: 500110 INE178A01016 Energy Petroleum Products 🔎 Screen
NIFTY 500 Smallcap 250 Oil & Gas
₹16,301 Cr
Market Cap
5.0
P/E
0.08
PEG
35.1%
ROCE
32.1%
ROE
0.18
D/E
7.3%
OPM
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📈 Price History
Ratio Health
Excellent
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By Category
Shareholding
About

Chennai Petroleum Corporation Limited is in the business of refining crude oil to produce & supply various petroleum products and manufacture and sale of lubricating oil additives.

✓ Strengths 3
  • Company has reduced debt.
  • Company has a good return on equity (ROE) track record: 3 Years ROE 23.5%
  • Company has been maintaining a healthy dividend payout of 31.5%
! Concerns

No concerns data yet.

Key Ratios Snapshot
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📈 Growth Pattern
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3-Statement Financial Model
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Strong beat – record crude throughput (2.93 MMT in Q4, 11.71 MMT FY26), GRM at $13.75/bbl ($8.70 Singapore), and all-time high dividend of ₹62/share. quarter Investor Presentation One-Pager? Mar 2026
Gross Refining Margin
$13.75/bbl (Q4), $9.2/bbl (FY26)
Premium to Singapore benchmark ($8.70/$5.83) – highest in recent years.
What Went Right
  • Record crude throughput of 11.71 MMT (112% capacity) despite 1-month planned shutdown of a crude unit.
  • Q4 GRM of $13.75/bbl vs Singapore $8.70 – 58% premium; FY26 GRM $9.2 vs $5.83 (58% premium).
  • Best-ever distillate yield of 79.1% (previous best 77.6% in FY20) and record LPG production of 447 TMT.
  • Strong balance sheet: debt/equity at 0.18 gross, 0.09 net; net debt below ₹1,000 Cr.
  • Highest-ever total dividend of ₹62/share (interim ₹8 + final ₹54).
What to Watch
  • Forex loss of ₹200 Cr in Q4 (₹350 Cr for FY26) weighed on reported profits – other expenses surged from ₹344 Cr to ₹634 Cr YoY.
  • Temporary crude supply disruptions from Middle East (30-40% of term contracts affected), though filled by spot purchases at competitive rates.
  • Management cautious on near-term GRM volatility: export duties on diesel/ATF have compressed cracks, but long-term average of ~$13/bbl is still achievable.
  • Capital expenditure run-rate unchanged: normal capex of ~₹500 Cr/year plus two large projects (LOBS ₹1,600 Cr, retail ₹400 Cr) – no major new growth catalysts visible yet.
Management Guidance
  • Management expects to sustain long-term average GRMs (~$13/bbl) in the near term, but refrains from quarterly guidance due to daily volatility.
  • Projects: LOBS Group 2&3 (₹1,600 Cr over 2-3 years), retail outlets (₹400 Cr), plus normal maintenance capex of ~₹500 Cr per year.
  • Debottlenecking study underway; if viable, low-cost capex could add further capacity beyond current 10.5 MMT nameplate.
Investor Lens
Thesis remains intact – CPCL continues to demonstrate operational excellence with consistent capacity utilization above 110%, premium GRMs vs benchmarks, and strong cash generation. Q4 results confirmed record throughput and highest-ever dividend. However, near-term watch items include: (i) sustainability of current GRM premium amid export duties and volatile crude differentials; (ii) execution of the ₹1,600 Cr LOBS project and its impact on margins; (iii) forex volatility given significant imported crude exposure; and (iv) ability to maintain >110% utilization given planned maintenance events in H1 FY27. Overall, the company's disciplined cost management, flexible crude sourcing (52% high-sulfur, diverse geography), and shareholder-friendly payout provide a solid risk-reward, but investors should monitor the pace of RTP adjustments and any further supply disruptions affecting Middle East barrels.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Net Profit up 202.6% to ₹1,422 Cr
Revenue
Revenue stood at ₹16,817 Cr, down 2.5% YoY but up 7.2% QoQ. This indicates a recovery in quarterly sales. Revenue decline is slower than previous year.
Profitability
Net Profit surged 202.6% YoY to ₹1,422 Cr, with EPS at ₹95.48. PAT growth is significant, driven by improved profitability. Profitability metrics have shown substantial improvement.
Margins
OPM expanded to 12% from 5% YoY, driven by cost management. OPM is higher than the previous quarter's 9%. This indicates improving operational efficiency.
Balance Sheet
Borrowings are at ₹1,964 Cr, with reserves at ₹10,960 Cr. The debt-to-equity ratio is 0.18, indicating a healthy balance sheet. Total assets stand at ₹20,035 Cr.
Key Risks
Dependence on crude oil prices, potential margin pressure, and interest rate changes are key risks. Borrowing costs and depreciation expenses also pose risks.
Outlook
The company's improving profitability and healthy balance sheet position it well for future growth. However, the energy sector's volatility and regulatory changes may impact future performance.
Generated by AI · Mar 2026 results · Not investment advice
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Investment Risk:
Investing in securities, including equities and mutual funds, involves inherent risks, including the potential loss of principal. All investments are subject to market fluctuations, regulatory changes, and other risks that may affect their value. Past performance is not indicative of future results. This report is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This report does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a SEBI-registered investment adviser or other qualified financial professional before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities or financial instruments discussed in this report. Any such positions, if material, are disclosed to the best of the author's knowledge and are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company, institution, or third party.

Information Sources:
The analysis and opinions expressed herein are based on publicly available information, including but not limited to company filings with the BSE/NSE, annual reports, management commentary, investor presentations, data from the Reserve Bank of India (RBI), SEBI, industry publications, and other reliable financial data sources. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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