Chennai Petroleum Corporation Reports More Than Tripled Q2 Net Profit at ₹2,271 Crore

Chennai Petroleum Corporation Ltd (CPCL) has posted a more than three-fold increase in its net profit, reaching ₹2,271 crore for the quarter ended September 30, 2026. This compares to a net profit of ₹732 crore posted in the corresponding quarter of the previous year.

Standalone revenue from refinery operations rose by 10 per cent to ₹22,109 crore in the second quarter, up from ₹20,069 crore a year earlier. The company’s gross refining margin (GRM) more than doubled, standing at $20.41 per barrel compared with $9.04 per barrel in the year-ago quarter.

H Shankar, Managing Director of CPCL, stated that international pricing trends provided a significant advantage during the period. The company experienced favorable conditions and capitalized on timing to support its overall operations.

The financial performance was achieved despite a planned maintenance shutdown of a major processing block, which included a hydrocracker unit responsible for producing middle distillates such as diesel. The 40-day shutdown began affecting operations in the second week of September.

During the second quarter, CPCL processed 2.590 million tonnes (mt) of crude, achieving a capacity utilisation rate of 98 per cent. Shankar noted that throughput from the remaining two operating blocks was maximized prior to taking the unit offline.

For the first half of FY27, CPCL's GRM stood at $14.34 per barrel, compared with $6.17 per barrel in the same period a year earlier. The company processed 5.438 mt of crude during the half-year, registering a capacity utilisation of 103 per cent.

CPCL has also lowered its reliance on specific crude grades through enhanced crude-blending capabilities, particularly for the production of lube oil base stocks (LOBS). According to the company, the first half of the fiscal year saw its highest-ever production of lube oil base stock compared to any previous corresponding period.

Crude sourcing is managed by CPCL's parent company, Indian Oil Corporation, which secures supplies from diverse regions including Russia, West Africa, and the Middle East. CPCL has processed new crude grades from countries such as Ghana and Nigeria, thereby expanding its sourcing flexibility.

Specialised products such as hexane, lube oil base stocks, and mineral terpene oil also contributed to the financial results, underscoring the company's focus on maximizing value from specialised outputs.

In retail operations, CPCL's three fuel outlets in and around Chennai remain operational, with plans to add approximately three more outlets in Tamil Nadu during the upcoming quarter. Additionally, the company has declared an interim dividend of ₹25 per equity share of ₹10 face value for FY27.

"CPCL's impressive Q2 performance highlights the critical importance of operational agility and supply chain diversification in the energy sector. By optimizing capacity utilization ahead of scheduled maintenance and leveraging flexible crude sourcing, the company successfully capitalized on favorable international pricing. This growth demonstrates how traditional refining businesses can maximize value through specialized product streams and disciplined execution during cyclical market upturns." — Dr. Shishir Gupta, Founder & CEO, StartupLanes