Chennai Petroleum Corporation Limited (CPCL) is a leading Indian oil refining company engaged in producing various petroleum products and manufacturing lubricating oil additives.
Financial Summary for Q2 FY26:
- Revenues rose 35.09% year on year to ₹16,327 crore from ₹12,086 crore, driven by improved operational activity and higher crude throughput.
- Total expenses increased 18.53% to ₹15,369 crore from ₹12,966 crore, reflecting higher input costs.
- Consolidated net profit swung to a ₹719 crore profit from a ₹634 crore loss in the previous year’s corresponding quarter.
- Earnings per share (EPS) improved to ₹48.30 from a negative ₹42.55 year on year.
Performance Drivers:
- The gross refining margin (GRM) moved sharply higher to USD 9.1 per barrel in Q2 FY26 from a negative USD 1.7 per barrel in Q2 FY25, supported by stronger distillate cracks amid low inventories and supply disruptions.
- Crude throughput increased 44% year on year reflecting better refinery utilization.
- Despite higher operational costs, improved product spreads and demand helped achieve significant margin expansion.
- The share of discounted Russian crude usage was around 19% in Q2 FY26, slightly down from 22% year ago, aiding cost competitiveness.
Outlook:
With improving GRM trends, higher refinery utilization, and ongoing strategic initiatives, CPCL expects continued earnings momentum in coming quarters. The company is optimistic of delivering value amidst evolving market dynamics.
Chennai Petroleum Corporation Ltd demonstrated a strong financial turnaround in Q2 FY26, driven by operational excellence and favourable market conditions, marking a significant recovery over the prior year.
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