Chennai Petroleum lifts margin despite lower year-on-year revenue
Expenses fell faster than revenue year on year, while lower interest costs supported a +211.07% rise in standalone net profit.
Filed 24 Apr 2026, 13:12 IST · Chennai Petroleum Corporation Ltd (CHENNPETRO)
Key takeaways
- Standalone operating margin expanded 7.56 percentage points year on year to 12.11% as expenses fell faster than revenue.
- Net profit rose +211.07% year on year despite a 3.31 percentage-point increase in the tax rate.
- The stock fell -3.21% on results day, a larger move than its 1.59% median absolute reaction after the past eight results.
Price around the results
Margin recovery continued in Q4FY26
Chennai Petroleum’s standalone revenue declined -2.50% year on year, but expenses fell -10.22%, allowing operating profit to rise +159.44%. The same pattern held sequentially: revenue grew +7.23% while expenses rose only +4.06%, lifting operating margin by 2.69 percentage points. This was the third consecutive quarter-on-quarter margin expansion.
Lower interest costs strengthened profit conversion
Interest expense fell -75.05% year on year and -49.71% sequentially, providing an additional lift to profit before tax alongside the operating improvement. The tax rate increased 3.31 percentage points year on year to 25.96%, so the net-profit growth was not driven by a lower tax burden. Other income contributed only 1.10% of pre-tax profit, making it a limited factor in earnings quality.
Margin remains below the reported Energy peer median
Operating margin has risen from 0.67% in Q1FY26 to 12.11% in Q4FY26, with each quarter showing sequential improvement. Even after that recovery, the margin was 2.48 percentage points below the 14.59% median among 15 Energy companies that had reported the same quarter.
Results-day fall was weaker than the stock’s usual reaction
The stock fell -3.21% on the results date and was down -6.72% on the following trading day. That was a larger move than its 1.59% median absolute reaction after the past eight results, during which it fell six times and rose twice. Trading volume was 3.19 times the reference level on results day.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹16,817 cr | ₹15,683 cr | +7.23% | -2.50% |
| Other income | ₹21 cr | ₹29 cr | -28.13% | +68.83% |
| Expenses | ₹14,781 cr | ₹14,205 cr | +4.06% | -10.22% |
| Operating profit | ₹2,036 cr | ₹1,478 cr | +37.76% | +159.44% |
| Operating margin (%) | 12.11% | 9.42% | — | — |
| Interest | ₹16 cr | ₹33 cr | -49.71% | -75.05% |
| Depreciation | ₹150 cr | ₹157 cr | -4.58% | +0.30% |
| Profit before tax | ₹1,890 cr | ₹1,317 cr | +43.54% | +224.97% |
| Tax | ₹491 cr | ₹330 cr | +48.78% | +272.45% |
| Net profit | ₹1,400 cr | ₹987 cr | +41.78% | +211.07% |
| EPS (₹) | ₹94.00 | ₹66.30 | +41.78% | +211.05% |
Operating margin of 12.11% compares with a Energy sector median of 14.59% across 15 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -3.21% | -2.07% |
| Next session | -6.72% | — |
| 5 sessions | +3.90% | +4.12% |
| 15 sessions | -7.61% | — |
| 30 sessions | +14.69% | — |
Volume on the results session was 3.19× its 20-day average.
What to watch
- Whether operating margin remains at or above 12.11%.
- Whether revenue growth stays ahead of expense growth after +7.23% and +4.06% sequentially.
- Whether interest expense remains below the Q3FY26 level after falling -49.71% sequentially.