Chennai Petroleum Corporation Ltd (CHENNPETRO) Q2 FY27 Results Analysis: PAT Surges 210%, Record GRM at US$20.41/bbl

Chennai Petroleum Corporation Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 22,055.45 Cr (+10.09% YoY) and PAT growth of +210.48% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Q2 FY27 delivered record GRM of US$20.41/bbl (vs US$9.04/bbl YoY), driving PAT up 210.48% YoY to Rs.2,271.29 Cr and EBITDA margin to 14.51% despite a 14.04% throughput decline from the M&I shutdown. H1 PAT already exceeds full FY26 PAT by 7.4%, though H1 cash conversion was weak (CFO Rs.24.86 Cr) due to ~Rs.4,093 Cr of working-capital absorption. No prior management guidance exists for revenue, earnings, or margin, so no guidance beat is claimed; the key H2 swing factors are GRM sustainability and throughput recovery.

Key Investment Insights

Key Positives

• PAT grew 210.48% YoY to Rs.2,271.29 Cr; EPS of Rs.152.53 vs Rs.49.13 YoY
• EBITDA of Rs.3,201.13 Cr, up 179.70% YoY, with margin at 14.51% vs 5.71% YoY
• Record GRM of US$20.41/bbl vs US$9.04/bbl YoY, including US$3.82/bbl inventory gain
• Revenue grew 10.09% YoY to Rs.22,055.45 Cr despite 14.04% throughput decline
• H1 FY27 PAT of Rs.3,287.96 Cr exceeds full FY26 PAT of Rs.3,061.85 Cr by 7.4%
• Net worth grew 23.08% in six months to Rs.13,293.44 Cr; debt/equity at 0.16x
• Interim dividend of Rs.25/share declared; other expenses declined 18.12% YoY

Risk Factors

• Crude throughput fell 14.04% YoY to 2.590 MMT due to M&I shutdown
• Finance costs rose 83.48% YoY to Rs.62.31 Cr on higher working-capital borrowing
• H1 FY27 CFO of Rs.24.86 Cr vs PAT of Rs.3,287.96 Cr; working capital absorbed ~Rs.4,093 Cr
• Cash fell to Rs.0.28 Cr from Rs.905.04 Cr at March 2026
• Q2 GRM includes US$3.82/bbl inventory gain; sustainability of record cracks uncertain
• Independent director shortfall flagged by auditor persists