Shares of Chennai Petroleum Corporation Ltd (CPCL) surged nearly 7% to ₹794.85 in Monday’s trade after the company reported a strong turnaround in its Q2 FY26 results, posting a net profit of ₹719 crore compared to a loss of ₹40 crore in the previous quarter (Q1 FY26).
Strong sequential recovery
The company’s revenue rose 10% sequentially to ₹16,326.7 crore from ₹14,812.2 crore in the June quarter, reflecting improved refining operations and higher throughput.
EBITDA witnessed a massive jump to ₹1,144 crore from ₹98.5 crore, with margins expanding sharply to 7%, up from just 0.66% in the previous quarter — a sign of stronger operational efficiency and favorable refining margins.
Market reaction
Following the announcement, CPCL shares gained 3% to ₹793.85, after hitting an intraday high of ₹794.85, up nearly 7% from the day’s low. The stock has already gained 26% in 2025, driven by improving profitability and margin recovery in the downstream oil sector.
Outlook
Analysts note that the strong rebound in Q2 earnings highlights Chennai Petroleum’s ability to capitalize on favorable Gross Refining Margins (GRMs) and steady crude throughput. Continued improvements in product spreads and refinery efficiency are expected to sustain earnings momentum in the coming quarters.
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