Chennai Petroleum’s operating margin rebounds to 15.57% in Q2
Expenses fell faster than revenue sequentially, while interest rose 19.51%; other income contributed only 0.98% of pre-tax profit.
Filed 22 Oct 2026, 13:39 IST · Chennai Petroleum Corporation Ltd (CHENNPETRO)
Key takeaways
- Consolidated net profit rose +212.44% YoY as revenue grew +25.91% while expenses rose +14.32%.
- Operating margin expanded 8.56 percentage points YoY to 15.57%, reversing the Q1FY27 decline.
- Other income was only 0.98% of pre-tax profit, but interest expense rose +83.48% YoY.
Price around the results
Profit rebounded despite lower sequential revenue
Chennai Petroleum reported consolidated Q2FY27 net profit growth of +212.44% YoY, with operating profit rising +179.70%. The YoY gain came as revenue grew +25.91%, while expenses rose +14.32%. QoQ, net profit increased +117.87% even as revenue fell -24.89%, because expenses contracted -32.76%.
Faster expense reduction drove the margin rebound
Operating margin expanded 8.56 percentage points YoY and 9.89 percentage points QoQ to 15.57%. Expenses grew more slowly than revenue on a YoY basis and fell faster than revenue sequentially, explaining the improvement. Interest expense still rose +83.48% YoY and +19.51% QoQ, adding pressure below operating profit.
Q2FY27 restored the multi-quarter margin uptrend
Operating margin rose from 0.67% in Q1FY26 to 12.11% in Q4FY26, then slipped to 5.68% in Q1FY27 before rebounding to 15.57% in Q2FY27. The tax rate was unchanged QoQ at 25.28% and was 1.48 percentage points lower YoY, which also supported net profit growth. Other income contributed only 0.98% of pre-tax profit, so the quarter’s earnings were not materially dependent on it.
No post-results move yet; prior reactions were mostly negative
The results are too fresh for a reported post-results market reaction. In the eight prior result reactions, the stock fell seven times, with a median absolute move of 2.92%. That history provides a predominantly negative reaction pattern, but does not establish the current move.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹20,558 cr | ₹27,369 cr | -24.89% | +25.91% |
| Other income | ₹30 cr | ₹32 cr | -8.86% | +27.69% |
| Expenses | ₹17,356 cr | ₹25,814 cr | -32.76% | +14.32% |
| Operating profit | ₹3,201 cr | ₹1,555 cr | +105.87% | +179.70% |
| Operating margin (%) | 15.57% | 5.68% | — | — |
| Interest | ₹62 cr | ₹52 cr | +19.51% | +83.48% |
| Depreciation | ₹161 cr | ₹155 cr | +3.94% | +6.14% |
| Profit before tax | ₹3,007 cr | ₹1,380 cr | +117.88% | +206.27% |
| Tax | ₹760 cr | ₹349 cr | +117.91% | +189.37% |
| Net profit | ₹2,247 cr | ₹1,031 cr | +117.87% | +212.44% |
| EPS (₹) | ₹152.53 | ₹69.26 | +120.23% | +215.80% |
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.33% | +1.71% |
Volume on the results session was 2.03× its 20-day average.
What to watch
- Whether operating margin holds above 15.57% after rebounding from 5.68% in Q1FY27.
- Whether expenses continue to grow more slowly than revenue, as in the YoY comparison of +14.32% versus +25.91%.
- Whether interest growth moderates from +83.48% YoY.