Crude Throughput (Annual)
11.71 MMT
+0.6% YoY
Highest ever, achieved despite a planned shutdown of one crude unit for a month.
CHENNAIPETROLEUM
Other
2026-04-??
Chennai Petroleum Corporation Ltd — Q4 FY26
Chennai Petroleum delivered a stellar Q4 FY26 with record annual crude throughput of 11.71 MMT (112% capacity) and Q4 throughput of 2.93 MMT (111% capacity).
✓ Verified against BSE filing
2-Min Summary
Chennai Petroleum delivered a stellar Q4 FY26 with record annual crude throughput of 11.71 MMT (112% capacity) and Q4 throughput of 2.93 MMT (111% capacity). Gross refining margin (GRM) for Q4 was $13.75/bbl, well above the Singapore benchmark of $8.70/bbl, driven by optimized crude mix (52% high sulfur), highest-ever distillate yield of 79.1%, and record LPG production of 447 TMT. The company maintained a strong balance sheet with net debt-to-equity of 0.09. Management guided for sustained high utilization, with a scheduled maintenance turnaround in H2 FY27 but expects minimal impact. Key growth projects include a ₹1,600 crore LOBS expansion and ₹400 crore retail outlet rollout. Risks include geopolitical crude supply disruptions and export duty volatility, though management expressed confidence in navigating these through flexible sourcing and long-term contracts.
Key Numbers
Distillate Yield
79.1%
+150bps YoY
Best ever, beating previous record of 77.6% set in FY20.
LPG Production
447 TMT
+10.6% YoY
Highest ever, overcoming global LPG supply uncertainties.
Gross Debt-to-Equity
0.18x
-21pp YoY
Improved from 0.39x last year; net DER at 0.09x.
Management Guidance
Sustained high capacity utilization
Management expects to maintain ~111% capacity utilization in H1 FY27, with a scheduled maintenance turnaround around Sep-Oct 2027.
growthLOBS project capex of ₹1,600 crore
Group II and III LOBS project with all approvals in place; execution started, expected to complete over 2-3 years.
capexRetail outlet rollout of ₹400 crore
300 retail outlet licenses taken; commissioning expected in FY27.
expansionNormal maintenance capex of ~₹500 crore per annum
Includes low-cost debottlenecking and energy efficiency projects.
capexKey Risks
Geopolitical crude supply disruptions
Middle East tensions and Red Sea route closures have impacted ~30-40% of term cargoes temporarily, though suppliers have assured makeup.
high · analyst_questionExport duty and RTP pricing volatility
Export duties on diesel and ATF have compressed netbacks; management deflected quantification of impact, stating they optimize domestic vs export sales.
medium · analyst_questionForex loss volatility
Q4 forex loss of ~₹200 crore and annual loss of ~₹350 crore booked in other expenses, impacting profitability.
medium · data_observationNotable Quotes
Our refineries continued stellar performance on both physical and financial parameters during this quarter and the financial year.
If I'm able to take this leverage, it is not only adding to throughput, it is also adding to the divisor effect and my performances, my matrixes, my profitabilities are pretty good.
I will not assign anything as profit forgone because I'm selling at market price which everyone else is selling.