Chennai Petroleum Corporation Ltd (CPCL), a subsidiary of Indian Oil Corporation, has reported a sharp surge in profitability for the fourth quarter ended March 31, 2026, with net profit more than tripling to ₹1,400 crore, compared with ₹450 crore in the year-ago period, even as revenue remained largely flat at ₹20,455 crore in Q4FY26 versus ₹20,581 crore in Q4FY25.
For the full year, the company delivered a standout performance, with net profit jumping over 17 times to ₹3,062 crore from ₹174 crore in the previous fiscal. Revenue for the fiscal rose 9 per cent to ₹78,611 crore, up from ₹71,050 crore.
A company official said profitability was boosted by improved international product prices and expanding product cracks, which is the difference between refined product prices and crude oil costs.
Supply chain agility amid disruptions
H. Shankar, Managing Director, CPCL, told businessline that despite the West Asia situation, the company managed to maintain near-full capacity operations, aided by support from parent Indian Oil Corporation.
The refinery temporarily halted Russian crude processing following sanctions earlier in the year, before resuming limited crude processing as conditions evolved. Alternative supplies were secured from regions such as West Africa, including Sudan, Ghana and Gabon, besides occasional cargoes from the US, he said.
Traditionally, around 55 per cent of CPCL’s crude is sourced through term contracts — largely from West Asia — with the rest coming from spot purchases and domestic supply.
CPCL processed 2.93 million tonnes (mt) of crude during the quarter, marginally lower than 2.97 mt in the corresponding period last year. Despite the slight dip, capacity utilisation stood at a robust 112 per cent, reflecting high operational efficiency and reliability.
For the full year, crude throughput rose to 11.71 mt from 10.45 mt a year earlier, with capacity utilisation sustained at 112 per cent. The company also maintained its best-ever distillate yield of around 80 per cent.
Gross Refining Margins (GRMs), a key indicator of refinery profitability, improved significantly. Quarterly GRM stood at $13.75 per barrel, more than double the $6.22 per barrel recorded a year earlier. For the full year, GRM rose to $9.28 per barrel, from $4.22 per barrel in the previous fiscal.
To manage price volatility and supply uncertainty, CPCL adopted a dynamic inventory strategy, reducing stock levels during periods of rising crude prices, and blending available grades to sustain operations, he noted. The refinery is also exploring additional sourcing options routed via the Red Sea, said Shankar.
Retail expansion
On the downstream front, CPCL has begun expanding into fuel retailing, commissioning its first outlet at Nemam near Chennai. A company-owned, company-operated flagship outlet is set to be launched at Manali shortly. The company is targeting around 100 retail outlets during the current financial year, with capital expenditure of roughly ₹400 crore earmarked for the broader roll-out.
The board recommended a final dividend of ₹54 per share (face value ₹10), in addition to an interim dividend of ₹8 per share declared earlier, taking the total pay-out for the year to ₹62 per share.
Published on April 24, 2026