Chennai Petroleum Corporation Ltd (CPCL) reported a more than three-fold increase in net profit to ₹2,271 crore for the quarter ended September 30, 2026, against the ₹732 crore it posted in the corresponding quarter last year, supported by higher international product prices, strong operational performance, and improved realisation from value-added products.
Revenue for the standalone refinery operations rose 10 per cent to ₹22,109 crore in Q2 compared with ₹20,069 crore a year earlier. The company’s gross refining margin (GRM) more than doubled to $20.41 per barrel from $9.04 per barrel in the year-ago quarter.
“We got a good advantage due to the international pricing prevailing at that time. That added to our bottom line. We had very good tailwinds and caught the best timing, which supported our operations,” CPCL’s Managing Director H Shankar, told businessline.
The performance came despite planned maintenance of a major processing block, including a hydrocracker unit that produces middle distillates such as diesel. The shutdown, scheduled for 40 days from September to mid-October, began affecting operations in the second week of September, he added.
CPCL processed 2.590 million tonnes (mt) of crude during Q2, achieving a capacity utilisation of 98 per cent. Shankar said the company maximised throughput from its other two operating blocks before taking the unit offline for maintenance.
“We maximised the value potential before taking the shutdown,” he added.
The GRM for the first half of FY27 stood at $14.34 per barrel, compared with $6.17 per barrel a year earlier. CPCL processed 5.438 mt of crude during the half-year, recording capacity utilisation of 103 per cent.
CPCL has also reduced its dependence on specific crude grades, particularly for producing lube oil base stocks (LOBS), by improving its crude-blending capabilities.
“During the first half, we achieved our highest-ever production of lube oil base stock compared with the first half of any previous year,” Shankar said.
Indian Oil Corporation, CPCL’s parent company, handles crude sourcing for the refinery and has helped secure supplies from different regions, including Russia when available, West Africa and the Middle East. CPCL has processed new crude grades from countries such as Ghana and Nigeria, alongside other West African sources, broadening its sourcing flexibility, Shankar said.
In addition to refining margins, products such as hexane, lube oil base stocks and mineral terpene oil contributed to the performance, reflecting CPCL’s focus on maximising value from specialised products.
Meanwhile, the company’s three retail fuel outlets in and around Chennai are operational, with the Mathur outlet (outside Chennai) performing well. CPCL plans to add around three more outlets in Tamil Nadu in the coming quarter, said Shankar.
The company has declared an interim dividend of ₹25 per equity share of ₹10 face value for FY27.
Published on October 22, 2026
