Refineries · Founded 1965 · www.cpcl.co.in · BSE 500110 · NSE CHENNAI PET. · ISIN INE178A01016
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Business
Chennai Petroleum Corporation Ltd. (CPCL) is a leading refiner of petroleum products in India. Its core business involves procuring crude oil, processing it in its refineries, and producing various refined petroleum products. These products include Liquefied Petroleum Gas (LPG), naphtha, gasoline (petrol), diesel, aviation turbine fuel (ATF), kerosene, fuel oil, bitumen, lube base stocks, paraffin wax, and petrochemical feedstocks. CPCL makes money primarily through the Gross Refining Margin (GRM), which is the difference between the aggregate value of petroleum products produced and the cost of crude oil processed. The company also generates revenue from value-added products and by-products.
Revenue Mix
As a company operating in the "Refineries" sector, CPCL's primary business segment is the refining of crude oil. Therefore, virtually all its revenue is derived from the sale of refined petroleum products. The revenue mix is determined by the output slate of its refineries, which typically includes a significant portion of transportation fuels (diesel, gasoline), followed by LPG, kerosene, ATF, fuel oil, and other specialized products. Specific percentage contributions for each product type are not typically segmented out publicly but vary based on market demand and refinery configurations.
Industry
The Indian refining industry is highly capital-intensive and characterized by a mix of public sector undertakings (PSUs) and private players. It is a strategically important sector for India's energy security. CPCL operates two refineries: one in Manali, Chennai (10.5 Million Metric Tonnes Per Annum - MMTPA) and another undergoing expansion/reconstruction in Nagapattinam (proposed 9 MMTPA). CPCL is a subsidiary of IndianOil Corporation Ltd. (IOCL), which is India's largest refiner and marketer of petroleum products. This parentage provides CPCL with significant advantages in crude sourcing, product marketing, and operational synergies within the larger IOCL ecosystem, positioning it as an important regional player, particularly in South India.
MOAT
CPCL's primary competitive advantages stem from:
Integration with IOCL: Being a subsidiary of IndianOil Corporation provides access to IOCL's extensive crude procurement network, established marketing and distribution channels, and financial backing. This offers operational stability and market access for its products.
Established Infrastructure: CPCL operates well-established refining assets in strategic locations in South India, which have undergone modernization and expansion over time.
Scale of Operations (through IOCL): While CPCL itself isn't the largest independent refiner, its capacity contributes to the overall scale of the IOCL group, benefiting from shared resources and expertise.
Logistical Advantages: Location of its refineries offers proximity to end markets in Southern India and port facilities for crude imports and product exports.
Growth Drivers
India's Energy Demand Growth: Continued economic growth and urbanization in India are expected to drive robust demand for petroleum products, especially transportation fuels and petrochemicals.
Nagapattinam Refinery Project: The planned 9 MMTPA refinery at Nagapattinam, which will replace the existing smaller facility, is a significant growth driver. This project will substantially increase CPCL's refining capacity and is designed to improve product slate and GRMs.
Diversification into Petrochemicals: Focus on producing higher-value petrochemical feedstocks from its refining process to capture better margins and diversify the product mix.
Technological Upgrades and Efficiency: Continuous modernization of existing units and adoption of advanced technologies to improve energy efficiency, reduce costs, and enhance product quality.
Risks
Crude Oil Price Volatility: Fluctuations in global crude oil prices directly impact CPCL's Gross Refining Margins (GRMs) and inventory valuations, leading to earnings volatility.
Regulatory and Policy Changes: The refining sector is subject to government policies on fuel pricing, taxes, and environmental regulations, which can significantly affect profitability.
Project Execution Risk: The large-scale Nagapattinam refinery project is subject to risks of delays, cost overruns, and commissioning challenges, impacting future growth timelines and financial health.
Environmental Regulations: Increasing global and domestic pressure for stricter emission norms and a transition to cleaner energy sources could necessitate significant capital expenditure for compliance or impact demand for conventional fuels in the long term.
Intense Competition: Competition from other domestic private and public sector refiners, as well as imports, can put pressure on margins.
Currency Fluctuations: As crude oil is imported, changes in the Indian Rupee-US Dollar exchange rate can impact the cost of raw materials.
Management & Ownership
Chennai Petroleum Corporation Ltd. is primarily promoted and majority-owned by IndianOil Corporation Ltd. (IOCL), which holds a controlling stake. Other significant shareholders include the Government of India (through various entities) and institutional investors. The management team comprises experienced professionals, often with a background in the public sector refining industry, with oversight from a Board of Directors that includes nominees from IOCL and government representatives, ensuring strategic alignment with national energy objectives.
Outlook
CPCL is positioned to benefit from India's sustained demand for petroleum products, driven by economic expansion. The successful commissioning and ramp-up of the new Nagapattinam refinery will be a pivotal factor for its future growth, significantly enhancing capacity and potentially improving profitability through a more advanced processing configuration. However, the company operates in a highly cyclical industry susceptible to volatile crude oil prices and fluctuating Gross Refining Margins. Regulatory changes, environmental pressures, and the ongoing energy transition pose long-term challenges. While its strong parentage (IOCL) provides stability and strategic advantages, CPCL's performance remains sensitive to global commodity market dynamics and the efficient execution of its expansion projects.
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| #(Fig in Cr.) | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 20454 | 20823 | 20361 | 14425 | 15683 | 20581 | 18683 | 20034 | 19438 | 20455 |
| Other Income | 2 | 3 | 4 | 4 | 4 | 12 | 9 | 6 | 29 | 21 |
| Total Income | 20456 | 20826 | 20365 | 14429 | 15688 | 20593 | 18693 | 20040 | 19467 | 20476 |
| Total Expenditure | 19774 | 19781 | 19698 | 15099 | 15441 | 19796 | 18585 | 18889 | 17960 | 18419 |
| Operating Profit | 682 | 1045 | 668 | -670 | 246 | 797 | 108 | 1151 | 1507 | 2057 |
| Interest | 50 | 51 | 48 | 52 | 79 | 66 | 37 | 34 | 33 | 16 |
| Depreciation | 151 | 151 | 150 | 153 | 153 | 150 | 151 | 152 | 157 | 150 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 481 | 844 | 470 | -876 | 14 | 582 | -80 | 965 | 1317 | 1890 |
| Provision for Tax | 121 | 231 | 127 | -228 | 4 | 132 | -23 | 263 | 330 | 491 |
| Profit After Tax | 360 | 612 | 343 | -648 | 10 | 450 | -57 | 702 | 987 | 1400 |
| Adjustments | 5 | 16 | 14 | 14 | 10 | 20 | 16 | 17 | 14 | 22 |
| Profit After Adjustments | 365 | 628 | 357 | -634 | 21 | 470 | -40 | 719 | 1002 | 1422 |
| Adjusted Earnings Per Share | 24.5 | 42.2 | 24 | -42.6 | 1.4 | 31.6 | -2.7 | 48.3 | 67.3 | 95.5 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 42128 | 25846 | 27520 | 32528 | 41338 | 37173 | 22445 | 43375 | 76735 | 66386 | 59356 | 78610 |
| Other Income | 31 | 30 | 34 | 33 | 53 | 18 | 101 | 11 | 7 | 10 | 25 | 65 |
| Total Income | 42159 | 25876 | 27554 | 32561 | 41391 | 37191 | 22546 | 43386 | 76742 | 66396 | 59381 | 78676 |
| Total Expenditure | 42252 | 24497 | 25643 | 30446 | 40822 | 39330 | 20433 | 40643 | 71037 | 61909 | 58340 | 73853 |
| Operating Profit | -93 | 1379 | 1911 | 2115 | 570 | -2139 | 2113 | 2743 | 5705 | 4487 | 1041 | 4823 |
| Interest | 405 | 353 | 274 | 322 | 421 | 415 | 376 | 413 | 331 | 224 | 245 | 120 |
| Depreciation | 229 | 274 | 279 | 340 | 453 | 468 | 466 | 504 | 573 | 606 | 606 | 610 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | -727 | 778 | 1386 | 1473 | -290 | -2995 | 1296 | 1841 | 4806 | 3694 | 249 | 4092 |
| Provision for Tax | -694 | 17 | 335 | 545 | -85 | -938 | 1039 | 489 | 1275 | 949 | 35 | 1061 |
| Profit After Tax | -33 | 762 | 1051 | 927 | -205 | -2056 | 257 | 1352 | 3532 | 2745 | 214 | 3032 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 69 |
| Profit After Adjustments | -33 | 762 | 1051 | 927 | -205 | -2056 | 257 | 1352 | 3532 | 2745 | 214 | 3103 |
| Adjusted Earnings Per Share | -2.2 | 51.1 | 70.6 | 62.3 | -13.8 | -138.1 | 17.3 | 90.8 | 237.2 | 184.3 | 14.4 | 208.4 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -11% | 11% | 10% | 3% |
| Operating Profit CAGR | -77% | -28% | 0% | 0% |
| PAT CAGR | -92% | -46% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | 71% | 45% | 54% | 19% |
| ROE Average | 3% | 38% | 38% | 18% |
| ROCE Average | 4% | 28% | 24% | 14% |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 1743 | 2469 | 3441 | 3997 | 3457 | 1359 | 1611 | 2987 | 6475 | 8821 | 8207 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 1000 | 2003 | 2324 | 826 | 1444 | 2940 | 3005 | 2392 | 2159 | 1335 | 158 |
| Other Non-Current Liabilities | 61 | 82 | 198 | 1100 | 1031 | -158 | 903 | 950 | 1914 | 2865 | 1217 |
| Total Current Liabilities | 8335 | 5903 | 5972 | 9038 | 8825 | 8415 | 9361 | 11468 | 6572 | 7289 | 7566 |
| Total Liabilities | 11138 | 10457 | 11935 | 14961 | 14757 | 12557 | 14880 | 17821 | 17132 | 20328 | 17163 |
| Fixed Assets | 4102 | 4119 | 3883 | 5914 | 6977 | 7034 | 7142 | 6967 | 7637 | 7506 | 7325 |
| Other Non-Current Assets | 928 | 1955 | 3064 | 2340 | 2202 | 2634 | 2653 | 1975 | 1827 | 2734 | 946 |
| Total Current Assets | 6109 | 4364 | 4971 | 6688 | 5553 | 2862 | 5057 | 8261 | 6800 | 8985 | 7572 |
| Total Assets | 11138 | 10457 | 11935 | 14961 | 14757 | 12557 | 14880 | 17821 | 17132 | 20328 | 17163 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 53 | 40 | 0 | 0 | 0 | 0 | 0 | 1 | 8 | 1 | 0 |
| Cash Flow from Operating Activities | 1083 | 2292 | 609 | 2757 | -144 | -620 | 452 | 1026 | 5749 | 2694 | 1352 |
| Cash Flow from Investing Activities | -480 | -1142 | -1169 | -969 | -1273 | -963 | -548 | -676 | -403 | -589 | -649 |
| Cash Flow from Financing Activities | -609 | -1152 | 561 | -1788 | 1417 | 1583 | 97 | -343 | -5354 | -2106 | -519 |
| Net Cash Inflow / Outflow | -6 | -1 | 0 | -0 | 0 | -0 | 1 | 7 | -7 | -1 | 184 |
| Closing Cash & Cash Equivalent | 47 | 39 | 0 | 0 | 0 | 0 | 1 | 8 | 1 | 0 | 184 |
| # | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | -2.23 | 51.14 | 70.57 | 62.27 | -13.79 | -138.1 | 17.28 | 90.8 | 237.16 | 184.34 | 14.38 |
| CEPS(Rs) | 13.18 | 69.52 | 89.28 | 85.11 | 16.6 | -106.66 | 48.56 | 124.63 | 275.67 | 225.02 | 55.1 |
| DPS(Rs) | 0 | 4 | 21 | 18.5 | 0 | 0 | 0 | 2 | 27 | 55 | 5 |
| Book NAV/Share(Rs) | 117.04 | 164.55 | 229.93 | 267.13 | 230.48 | 89.46 | 106.33 | 200.57 | 434.83 | 592.37 | 551.11 |
| Core EBITDA Margin(%) | -0.26 | 3.86 | 4.62 | 4.71 | 0.99 | -4.42 | 4.8 | 4.51 | 6.26 | 5.64 | 1.43 |
| EBIT Margin(%) | -0.67 | 3.23 | 4.09 | 4.06 | 0.25 | -5.28 | 3.99 | 3.72 | 5.64 | 4.93 | 0.69 |
| Pre Tax Margin(%) | -1.51 | 2.23 | 3.41 | 3.33 | -0.55 | -6.13 | 3.09 | 3.04 | 5.28 | 4.65 | 0.35 |
| PAT Margin (%) | -0.07 | 2.18 | 2.59 | 2.1 | -0.39 | -4.21 | 0.61 | 2.23 | 3.88 | 3.46 | 0.3 |
| Cash Profit Margin (%) | 0.41 | 2.96 | 3.27 | 2.87 | 0.47 | -3.25 | 1.72 | 3.06 | 4.51 | 4.22 | 1.15 |
| ROA(%) | -0.3 | 7.05 | 9.39 | 6.89 | -1.38 | -15.06 | 1.88 | 8.27 | 20.21 | 14.66 | 1.14 |
| ROE(%) | -1.91 | 36.32 | 35.78 | 25.05 | -5.54 | -86.33 | 17.65 | 59.17 | 74.65 | 35.89 | 2.51 |
| ROCE(%) | -4.51 | 15.98 | 20.82 | 20.63 | 1.41 | -25.63 | 16.11 | 19.65 | 44.83 | 35.15 | 4.31 |
| Receivable days | 14 | 13.63 | 8.09 | 10.77 | 6.62 | 1.69 | 1.41 | 1.36 | 1.1 | 1.75 | 1.68 |
| Inventory Days | 29.19 | 36.7 | 28.68 | 32.85 | 33.51 | 26.93 | 29.88 | 36.28 | 27.07 | 31.72 | 36.74 |
| Payable days | 28.9 | 44.87 | 30.89 | 38.22 | 32.05 | 19.35 | 32.99 | 24.05 | 16.63 | 22.15 | 24.09 |
| PER(x) | 0 | 3.9 | 5.14 | 5.28 | 0 | 0 | 5.79 | 1.41 | 1 | 4.92 | 42.71 |
| Price/Book(x) | 0.59 | 1.21 | 1.58 | 1.23 | 1.18 | 0.68 | 0.94 | 0.64 | 0.55 | 1.53 | 1.11 |
| Dividend Yield(%) | 0 | 2.01 | 5.79 | 5.63 | 0 | 0 | 0 | 1.57 | 11.35 | 6.07 | 0.81 |
| EV/Net Sales(x) | 0.15 | 0.29 | 0.4 | 0.29 | 0.26 | 0.26 | 0.47 | 0.26 | 0.1 | 0.24 | 0.2 |
| EV/Core EBITDA(x) | -68.84 | 5.43 | 5.7 | 4.43 | 18.82 | -4.49 | 5.03 | 4.05 | 1.36 | 3.6 | 11.4 |
| Net Sales Growth(%) | 0 | -38.65 | 6.48 | 18.2 | 27.09 | -10.08 | -39.62 | 93.25 | 76.91 | -13.49 | -10.59 |
| EBIT Growth(%) | 0 | 451.26 | 46.74 | 9.93 | -92.7 | -2304.93 | 164.83 | 34.78 | 127.86 | -23.74 | -87.41 |
| PAT Growth(%) | 0 | 2390.1 | 37.99 | -9.38 | -122.15 | -837.67 | 112.51 | 425.55 | 161.2 | -22.27 | -92.2 |
| EPS Growth(%) | 0 | 2390.14 | 37.98 | -11.76 | -122.15 | -901.41 | 112.51 | 425.55 | 161.2 | -22.27 | -92.2 |
| Debt/Equity(x) | 3.1 | 1.86 | 1.61 | 1.13 | 1.94 | 6.53 | 5.78 | 3.09 | 0.65 | 0.31 | 0.38 |
| Current Ratio(x) | 0.73 | 0.74 | 0.83 | 0.74 | 0.63 | 0.34 | 0.54 | 0.72 | 1.03 | 1.23 | 1 |
| Quick Ratio(x) | 0.27 | 0.2 | 0.3 | 0.21 | 0.08 | 0.06 | 0.06 | 0.06 | 0.13 | 0.16 | 0.14 |
| Interest Cover(x) | -0.79 | 3.21 | 6.06 | 5.58 | 0.31 | -6.22 | 4.44 | 5.46 | 15.53 | 17.48 | 2.02 |
| Total Debt/Mcap(x) | 5.29 | 1.54 | 1.02 | 0.92 | 1.64 | 9.64 | 6.14 | 4.85 | 1.2 | 0.2 | 0.34 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 67.29 | 67.29 | 67.29 | 67.29 | 67.29 | 67.29 | 67.29 | 67.29 | 67.29 | 67.29 |
| FII | 14.66 | 15.75 | 15.61 | 16.02 | 11.07 | 10.58 | 8.78 | 8.79 | 12.87 | 12.59 |
| DII | 1.28 | 0.85 | 0.97 | 0.45 | 1.82 | 2.24 | 2.37 | 2.6 | 1.02 | 2.11 |
| Public | 16.77 | 16.11 | 16.14 | 16.24 | 19.82 | 19.89 | 21.56 | 21.31 | 18.82 | 18.01 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 10.02 | 10.02 | 10.02 | 10.02 | 10.02 | 10.02 | 10.02 | 10.02 | 10.02 | 10.02 |
| FII | 2.18 | 2.35 | 2.32 | 2.39 | 1.65 | 1.58 | 1.31 | 1.31 | 1.92 | 1.87 |
| DII | 0.19 | 0.13 | 0.14 | 0.07 | 0.27 | 0.33 | 0.35 | 0.39 | 0.15 | 0.31 |
| Public | 2.5 | 2.4 | 2.4 | 2.42 | 2.95 | 2.96 | 3.21 | 3.17 | 2.8 | 2.68 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 14.89 | 14.89 | 14.89 | 14.89 | 14.89 | 14.89 | 14.89 | 14.89 | 14.89 | 14.89 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -11% | +11% | +10% | +3% |
| Operating Profit CAGR | -77% | -28% | — | — |
| PAT CAGR | -92% | -46% | — | — |
| Share Price CAGR | +71% | +45% | +54% | +19% |
| ROE Average | +3% | +38% | +38% | +18% |
| ROCE Average | +4% | +28% | +24% | +14% |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 67.29 | 67.29 | 67.29 | 67.29 | 67.29 | 67.29 | 67.29 | 67.29 | 67.29 | 67.29 |
| FII | 14.66 | 15.75 | 15.61 | 16.02 | 11.07 | 10.58 | 8.78 | 8.79 | 12.87 | 12.59 |
| DII | 1.28 | 0.85 | 0.97 | 0.45 | 1.82 | 2.24 | 2.37 | 2.6 | 1.02 | 2.11 |
| Public | 32.71 | 32.71 | 32.71 | 32.71 | 32.71 | 32.71 | 32.71 | 32.71 | 32.71 | 32.71 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 10.02 | 10.02 | 10.02 | 10.02 | 10.02 | 10.02 | 10.02 | 10.02 | 10.02 | 10.02 |
| FII | 2.18 | 2.35 | 2.32 | 2.39 | 1.65 | 1.58 | 1.31 | 1.31 | 1.92 | 1.87 |
| DII | 0.19 | 0.13 | 0.14 | 0.07 | 0.27 | 0.33 | 0.35 | 0.39 | 0.15 | 0.31 |
| Public | 4.87 | 4.87 | 4.87 | 4.87 | 4.87 | 4.87 | 4.87 | 4.87 | 4.87 | 4.87 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 14.89 | 14.89 | 14.89 | 14.89 | 14.89 | 14.89 | 14.89 | 14.89 | 14.89 | 14.89 |
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