4,720% Net Profit Growth: PSU stock jumps 5% after announcing its Q3 results

Synopsis: Chennai Petroleum shares rose 5% after Q3 results: revenue up 21% YoY to ₹15,683 cr, and net profit surged 4,719.5% YoY to ₹1,001.5 cr, followed by optimization of expenses.

The shares of a Small-cap company specialising in refining crude oil to produce a wide range of petroleum products, including LPG, motor spirit, diesel, ATF, and bitumen, are in focus following their Q3 results with a 4,720 percent rise in profit.

With a market capitalization of Rs. 12,957.53 Crores on Tuesday, the shares of Chennai Petroleum Corporation Ltd jumped upto 4.9 percent, reaching a high of Rs. 885.00 compared to its previous close of Rs. 843.50.

What Happened

Chennai Petroleum Corporation Ltd, engaged in refining crude oil to produce a wide range of petroleum products, including LPG, motor spirit, diesel, ATF, and bitumen, is in the spotlight today as it has announced its Q3 results as follows:

Its Revenue from operations rose by 21 percent YoY from Rs. 12,925 Crores in Q3FY25 to Rs. 15,683 Crores in Q3FY26, and it declined by 4 percent QoQ from Rs. 16,327 Crores in Q2FY26 to Rs. 15,683 Crores in Q3FY26.

Its Net Profit YoY rose by 4719.5 percent from Rs. 20.78 Crores in Q3FY25 to Rs. 1,001.5 Crores in Q3FY26, and on a QoQ basis, it rose by 39 percent from Rs. 719 Crores in Q2FY26 to Rs. 1,001.5 Crores in Q3FY26. The earnings per share (EPS) for the quarterly period stood at Rs. 67.26, compared to Rs. 1.40  in the previous year’s quarter.

Company Overview & Others

Chennai Petroleum Corporation Limited (CPCL), one of the leading group companies of IndianOil, was conceived in the 1960s as a 2.5 million metric tonnes per annum (MMTPA) refinery designed to produce fuels and lube base stocks. Over the past five decades, CPCL has experienced an eventful, growth-oriented journey, with the CPCL family building the organisation to reach its present capacity of 10.5 MMTPA.

Today, CPCL stands tall among India’s public-sector refining companies, operating one of the most complex refineries of its kind in the country and producing a wide range of value-added petroleum products. CPCL has also pioneered key initiatives in areas such as process optimisation, technology absorption, energy conservation, wasteland reclamation, and environmental management.

The company has significantly reduced its debt, reflected in a low debt-to-equity ratio of 0.22, indicating a strong balance sheet. It also shows an impressive return on equity, with a 3-year average ROE of 31.1%, highlighting efficient use of shareholders’ funds.

Additionally, the company maintains a healthy dividend payout ratio of 25.3%, balancing shareholder returns with reinvestment for future growth. Compared to the industry average P/E of 9.03, the stock’s P/E of 5.99 suggests it is relatively undervalued, potentially offering an attractive investment opportunity.

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