Shares of Chennai Petroleum Corporation Ltd. recovered from the lows of the day and traded with gains on Thursday, October 22, after the company reported its earnings for the second quarter.
Its profit after tax surged to ₹2,247 crore in the second quarter from ₹1,031 crore in the previous one.
Its revenue declined 25% to ₹20,557 crore from ₹27,369 crore in the prior quarter. There was an additional revenue of ₹385 crore recognized in the first quarter that was related to supplies made for the fourth quarter of FY26, which explains the drop in the current quarter topline.
Earnings before interest, taxes, depreciation and amortization (EBITDA) more than doubled to ₹3,200 crore, while its operating margin expanded to 15.6% from 5.7% sequentially.
The second quarter gross refining margins (GRMs) stood at $20.41 per barrel compared to $8.78 per barrel in the previous quarter and $9.04 per barrel in the year-ago period.
The GRM in the fourth quarter of FY26 was $14.1 per barrel. GRMs or Gross Refining Margins is the difference between the total market value of petroleum products produced by an oil refinery and the cost of raw crude oil processed.
The company also declared an interim dividend of ₹25 per share.
Chennai Petro’s GRMs were higher than its peer MRPL, who reported a figure of $14.8 per barrel.
The stock also trades cheaper in comparison to MRPL at 3.2 times its financial year 2027 Earnings Per Share (EPS), compared to MRPL’s 6.2 times for the same metric.
According to the International Energy Agency (IEA), diesel cracks stood at $113 per barrel as on October 8, sharply above pre-war levels.
Shares of Chennai Petro made an intraday low of ₹1,377.3 on Thursday before recovering over 5.5% from the lows of the day to trade at ₹1,451.9. The stock is up 71% so far this year.
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