C P C L Q2 FY27 Results (NSE: CHENNPETRO)
Signal: Margin expansion
The read
The earnings inflection is refining-margin driven rather than volume driven: Q2 GRM more than doubled to US$20.41/bbl and lifted EBITDA margin 887bps to 14.76%, but H1 operating cash flow fell 98.2% to ₹24.86 crore as working capital absorbed ₹4093.32 crore.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹22,055.45 Cr | +10.1% | -24.9% |
| EBIT | ₹3,093.88 Cr | +222.2% | |
| Net profit | ₹2,271.29 Cr | +210.2% | |
| EPS | ₹152.53 | +210.4% | |
| EBIT margin | 14.76% |
P&L walk
The consolidated financial statement is referenced in the filing, but its numerical P&L and segment data are not included in the supplied text.
Segments
The company reports a single Petroleum segment, so the Q2 inflection is group-wide: GRM increased to US$20.41/bbl from US$9.04/bbl while throughput fell to 2.590 MMT from 3.013 MMT.
Key positives
- Q2 GRM rose to US$20.41/bbl from US$9.04/bbl, with inventory gain rising to US$3.82/bbl from US$1.38/bbl.
- PAT increased 210.2% YoY to ₹2271.29 crore and EPS increased 210.4% to ₹152.53, with no exceptional income.
- The board declared an interim dividend of ₹25 per share, payable on or before 21 November 2026.
Key concerns
- Crude throughput declined 14.0% YoY to 2.590 MMT and revenue declined 10.1% YoY to ₹22055.45 crore, making the profit rebound dependent on refining margins rather than volume growth.
- H1 operating cash flow fell 98.2% YoY to ₹24.86 crore as working capital generated a ₹4093.32 crore outflow, including ₹1834.84 crore from receivables.
- Finance costs rose 83.5% YoY to ₹62.31 crore despite the earnings recovery.
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