Chennai Petroleum profit swings positive, but margin drops 6.43 points sequentially
YoY margin improved 5.01 points, but operating margin remained 8.77 points below the 15-peer Energy median.
Filed 23 Jul 2026, 13:13 IST · Chennai Petroleum Corporation Ltd (CHENNPETRO)
Key takeaways
- Consolidated net profit recovered to Rs 1,031.35 cr from a Rs 40.10 cr loss a year earlier as revenue grew 84.77% and operating margin improved 5.01 percentage points.
- Sequential momentum weakened: expenses rose 74.64% against 62.74% revenue growth, narrowing operating margin by 6.43 percentage points.
- The stock fell 7.11% by the next session, a larger move than its 1.67% median absolute reaction after the past eight results.
Price around the results
Profit recovery masks a weaker quarter-on-quarter showing
Chennai Petroleum reported consolidated net profit of Rs 1,031.35 cr in Q1FY27, against a Rs 40.10 cr loss a year earlier. Revenue grew 84.77%, faster than expenses at 75.45%, lifting operating margin by 5.01 percentage points. Sequentially, however, net profit fell 27.46% as revenue increased 62.74% but expenses rose 74.64%.
Higher sequential costs cut operating margin
Operating margin narrowed to 5.68% from 12.11% in Q4FY26 because expenses grew faster than revenue, reducing the margin by 6.43 percentage points. Interest expense also rose 217.54% sequentially, adding to the pressure below operating profit. The year-on-year tax rate fell by 11.65 percentage points, which supported the profit recovery, while other income contributed only 2.35% of pre-tax profit.
The quarter broke a three-quarter margin climb
Operating margin had risen from 7.01% in Q2FY26 to 9.42% in Q3FY26 and 12.11% in Q4FY26 before falling to 5.68% in Q1FY27. Chennai Petroleum's margin was 9.67 percentage points below the 15.35% median for 17 Energy peers that had reported, placing it fifth from the bottom.
The post-results fall was unusually large for this stock
The stock fell 2.92% on the result day and 7.11% by the next session, with a 5.32% decline by the fifth session. Its reaction history shows seven down moves and one up move across the past eight results, but the next-session decline was well above the 1.67% median absolute move.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹27,369 cr | ₹16,817 cr | +62.74% | +84.77% |
| Other income | ₹32 cr | ₹43 cr | -24.66% | +25.85% |
| Expenses | ₹25,814 cr | ₹14,781 cr | +74.64% | +75.45% |
| Operating profit | ₹1,555 cr | ₹2,036 cr | -23.63% | +1476.36% |
| Operating margin (%) | 5.68% | 12.11% | — | — |
| Interest | ₹52 cr | ₹16 cr | +217.54% | +40.77% |
| Depreciation | ₹155 cr | ₹150 cr | +3.23% | +2.66% |
| Profit before tax | ₹1,380 cr | ₹1,913 cr | -27.83% | — |
| Tax | ₹349 cr | ₹491 cr | -28.90% | — |
| Net profit | ₹1,031 cr | ₹1,422 cr | -27.46% | — |
| EPS (₹) | ₹69.26 | ₹95.48 | -27.46% | — |
Operating margin of 5.68% compares with a Energy sector median of 15.35% across 17 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.92% | -2.39% |
| Next session | -7.11% | — |
| 5 sessions | -5.32% | -6.66% |
Volume on the results session was 4.87× its 20-day average.
What to watch
- Whether operating margin recovers from 5.68% after the sequential 6.43-percentage-point decline.
- Whether expenses continue to grow faster than revenue after the 74.64% versus 62.74% sequential increase.
- Whether interest expense moderates after its 217.54% sequential rise.