Chennai Petroleum Corporation Limited (Chennai Petro) has emerged as a standout dividend performer in the PSU sector, declaring an equity dividend of ₹62.0 per share for FY26, representing the highest payout in the company's history. According to reports from The Financial Express, this marks a remarkable jump from ₹5 per share paid in FY25, reflecting the company's strong operational turnaround. The dividend represents a 30% payout ratio and is mandated by the Department of Investment and Public Asset Management (DIPAM), which requires CPSEs to pay at least 30% of net profit or 5% of net worth, whichever is higher. In the latest quarter ending March 2026, the company declared a dividend of ₹54.00 per share on April 24, 2026, translating to a dividend yield of 5.41%.
The company's financial transformation has been dramatic, with consolidated net profit growing at 65% CAGR over the last 5 years, reaching ₹3,103 crore in FY26. As reported by The Financial Express, revenue increased by 7.9% year-on-year to ₹63,640 crore in FY26, driven by 12% higher crude throughput. Operating EBITDA surged by 368% to ₹4,757 crore, with margins expanding to 7.5% from just 1.7% in FY25. This improvement was primarily driven by a more than doubling of the average gross refining margin (GRM) to US$9.28 from US$4.22 during the period. Recent quarterly performance shows continued strength with revenue of ₹27,369.27 crore and net profit of ₹1,031.35 crore in Q1 FY27.
Chennai Petro demonstrated exceptional cash flow generation in FY26, recording net cash flow from operating activities of ₹2,945 crore, more than double the ₹1,352.4 crore generated in FY25. According to The Financial Express, the company maintained a healthy operational cash surplus even after investing ₹886.5 crore in working capital and paying ₹967.9 crore in direct taxes. Free cash flow stood at ₹2,045 crore in FY26, up from ₹667 crore in FY25, demonstrating the company's ability to generate cash even during challenging periods. The company's reserves have expanded significantly to ₹10,960 crore in FY26 from ₹8,058 crore in FY25.
The momentum has continued into Q1FY27, with Chennai Petro recording revenue from operations of ₹27,369 crore, up 84.8% year-on-year. As reported by The Financial Express, the company achieved 108% capacity utilisation with crude throughput of 2.85 MMT. Operating EBITDA jumped to ₹1,555 crore from ₹99 crore in Q1FY26, with margins recovering to 6% from just 0.7% in the year-ago period. The company's average GRM increased to US$8.78 per barrel from US$3.22 per barrel in Q1FY26, resulting in a complete turnaround with net profit of ₹1,031 crore compared to a net loss of ₹40 crore in Q1FY26.
Chennai Petro's stock has shown remarkable performance with a 48.7% increase in the last 6 months and 104.95% growth over the past 30 days, indicating increased transactional activity. According to INDmoney data, the stock closed at ₹1,260.6 on July 31, 2026, with a market capitalisation of ₹18,438.21 crore. The company's 52-week high stands at ₹1,354 and 52-week low at ₹620.85, with the current price representing a 103.04% increase from its 52-week low. Foreign institutional investors have increased their holdings from 12.59% to 14.99% in the June 2026 quarter, while promoter holdings remained stable at 67.29%. The company operates the 10.5 MMTPA Manali refinery in Tamil Nadu with capacity to process about 235,000 barrels of crude oil per day.
