CHENNPETRO
Large CapChennai Petroleum Corporation Limited
Power
Chennai Petroleum Corporation Limited (CPCL) operates refineries in India, demonstrating strong operational performance and efficiency. The company is also venturing into retail outlets.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Strong fundamentals, management trust is supportive, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 50/100Rev -3% YoY · PAT +203% YoY · margin expansion · +7% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹16,817 Cr | -2.5% | +7.2% |
| EBITDA | ₹2,036 Cr | +159.4% | +37.8% |
| Operating margin | 12.0% | +700 bps | +300 bps |
| PAT | ₹1,422 Cr | +202.6% | +41.9% |
| PAT margin | 8.5% | +574 bps | +207 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
CPCL reported highest ever FY26 crude throughput (11.71 MMT, 112% capacity), distillate yield (79.1%), and product production (diesel, petrol, LPG). FY26 GRM was $9.2/bbl (Q4: $13.75/bbl). Net debt-equity improved to 0.09, and the company declared its highest ever dividend of INR62/share.
The company delivered record operational and financial performance in FY26, exceeding capacity utilization and improving key efficiency metrics. Strong GRMs, reduced leverage, and increased dividends indicate robust execution despite global challenges. Management is focused on value-added projects and operational excellence.
Product Volume Distribution
Latest issuer-disclosed distribution across 2 reported categories.
Operational Excellence
Consistently exceeding 100% capacity utilization (112% in FY26) and improving efficiency metrics like fuel & loss and distillate yield.
Value-Added Niche Products
Achieved highest ever production and dispatch of LS naphtha, pharma-grade Hexane, and MTO. Hexane capacity doubled from 30 TMT to 60 TMT.
Crude Sourcing Flexibility
Strategic sourcing (55-60% long-term, rest spot) from diverse sources, processing 52% high sulphur crude in FY26, and adapting to cheaper low-sulfur crude.
New Value-Added Projects
Undertaking Group 2 & 3 LOBS project (INR1,600 crores) for higher realization products and retail outlet expansion (INR400 crores).
Group 2 & 3 LOBS Project
INR1,600 crores project, execution started, expected to add 250 KTPA capacity for Group 2 & 3 lubes.
Retail Outlet Expansion
INR400 crores project for 300 retail outlets, with commissioning expected in FY27.
Hexane Capacity Doubling
Capacity increased from 30 TMT to 60 TMT.
Strong GRM Environment
CPCL's GRMs consistently at a premium to Singapore benchmarks, indicating strong market conditions and internal optimization.
Domestic Demand for LPG
Achieved highest ever LPG production of 447 TMT, stepping up to meet national requirements amidst global uncertainties.
Value-Added Product Market
Growing demand for higher-grade lubes (Group 2 & 3 LOBS) and niche products like pharma-grade Hexane, offering better realizations.
Global Uncertainties
Logistical constraints and volatility of crude oil prices continue to pose challenges.
Geopolitical Events
Geopolitical events influenced Q4 FY26, creating challenges and uncertainties in crude sourcing.
Forex Volatility
Significant rupee movement during the quarter and year led to higher other expenses (INR200 crores in Q4, INR350-400 crores in FY26).
Crude Sourcing Disruptions
Geopolitical events and the Strait of Hormuz closure temporarily impacted 30-40% of Middle East long-term contracts, though suppliers assured commitments.
Product Margin Volatility
High daily volatility in cracks and potential impact of export duties on net realizations, though management expects long-term averages to be sustained.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The company reports both full-year (FY26) and quarterly (Q4 FY26) results, with management highlighting consistent performance improvements over several years (YoY) and sequential GRM improvements (QoQ).
Crude Throughput (FY26)
11.71 MMT (112% of installed capacity), highest ever.
Crude Throughput (Q4 FY26)
2.93 MMT (111% of installed capacity).
Gross Refining Margin (FY26)
$9.2 per barrel (vs Singapore benchmark $5.83 per barrel).
Gross Refining Margin (Q4 FY26)
$13.75 per barrel (vs Singapore benchmark $8.70 per barrel).
Sustained Performance
Expects momentum to continue in the new financial year, focusing on efficient refinery operations, cost control, and capital discipline.
Shareholder Returns
Committed to consistent dividend payments, with FY26 being the highest ever (INR62/share), and bonus issue consideration at the appropriate time.
Debottlenecking Study
Exploring low-cost debottlenecking opportunities to sustain and potentially enhance capacity, with a study expected to complete in FY27.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Crude Throughput | 112% of installed capacity (FY26) | Sustained high utilization and impact of scheduled maintenance and inspection (M&I) in H2 FY27. |
| Project Commissioning | Group 2 & 3 LOBS project execution started; 300 retail outlets commissioning in FY27. | Timely commissioning and ramp-up of new LOBS capacity and retail outlets. |
| Distillate Yield | 79.1% (highest ever) | Continued incremental improvements from operational measures and small capex projects. |
| Net GRM | $13/bbl (long-term average) | Sustenance of GRMs close to long-term averages amidst market volatility and export duties. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
60BullishSMA20 +17.9% / mo · near 52W high
Technical chart
CHENNPETROdaily · 1Y+18.8%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 75. Wait for confirmation.
- SMA20 rising (~1.7% over last month) — short-term momentum positive.
- RSI(14) at 75 — overbought zone; risk of mean reversion.
- MACD above signal, histogram expanding — bullish momentum building.
- Within 3% of 52-week high — testing resistance.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
DEEP VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 11.3%.
- Piotroski is strong at 7/9.
- Fair-value margin of safety is positive at 82.0%.
Main drags
- Penalty bucket subtracts 1 points.
- Balance sheet is weaker at 12/15; verify the latest quarterly trend.
- Growth is weaker at 22/25; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 91st percentile of the scored universe and 88th percentile within Power. Main check: results consistency is weak at 31/100.
High Trust Lite: Promoter holding is 67.3%. Key concern: 2 latest quarters had PAT decline worse than 25% YoY.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Power: 88th pctile, median 67 · Large: 77th pctile, median 74
12 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 67.3%.
- ▸Promoter pledge is zero.
- ▸FCF yield is 11.4%.
- ▸8 years of positive FCF.
Trust risks
- ▸2 latest quarters had PAT decline worse than 25% YoY.
- ▸OPM spread across recent quarters is 18%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 5.72
- P/B
- 1.60
- EV/EBITDA
- 3.89
- Market Cap
- 17747.00Cr
Profitability
- ROE
- 32.10%
- ROCE
- 35.10%
- ROA
- 15.49%
- Dividend Y
- 0.67%
Growth (CAGR)
- Revenue 5Y
- 23.00%
- EPS 5Y
- 65.00%
- Revenue 3Y
- -6.00%
- EPS 3Y
- -4.00%
Balance Sheet
- Debt/Equity
- 0.28
- Interest Coverage
- 39.64×
- Altman Z
- 5.94
- Book Value
- 746.00
Cash Flow
- FCF Yield
- 11.35%
- FCF Positive Y
- 8/5
- OCF
- 2945.00 Cr
- EPS TTM
- 208.36
Shareholding
- Promoter Hold
- 67.29%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 94%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Power — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.