Chennai Petroleum Corporation Limited, a subsidiary of Indian Oil Corporation, has reported strong Q4 results and a massive dividend for FY26.
The company has announced a 540% final dividend, which means Rs 54 per share (face value Rs 10).
This is in addition to an interim dividend of Rs 8 per share already paid earlier in the year.
However, the final payout will be made only after shareholder approval at the upcoming AGM.
Profit Jumps Over 200% in Q4
The company delivered an impressive performance in the March quarter.
Net profit more than tripled, rising 203% year-on-year to Rs 1,421.85 crore.
In the same quarter last year, profit stood at Rs 469.93 crore.
This sharp growth shows a strong turnaround in profitability.
Revenue Flat, Costs Fall Sharply
While profit surged, revenue growth remained almost flat.
The company reported revenue of Rs 20,455 crore, slightly lower than last year.
So, what drove the profit jump?
The answer is lower expenses.
Total costs fell by over 7%, which helped boost overall earnings.
At the operating level:
EBITDA rose sharply by 159%
Margins improved from 3.81% to 9.95%
This indicates better efficiency and cost control.
Share Price Sees Short-Term Pressure
Despite strong results, the stock fell 5.6% after the announcement, closing at around Rs 1,009.
But the bigger picture tells a different story.
The stock has delivered:
19% gains this year
Over 60% returns in one year
More than 280% in three years
Around 883% returns in five years
It also recently touched a 52-week high of Rs 1,103.
Dividend History Shows Strong Payout Trend
Chennai Petroleum has been consistently rewarding shareholders.
Recent dividends include:
Rs 8 per share (April 2026)
Rs 5 per share (August 2025)
Rs 55 per share (July 2024)
The company has maintained a steady track record of payouts over the years.
About the Company
Chennai Petroleum, earlier known as Madras Refineries, operates under the Ministry of Petroleum and Natural Gas.
It is mainly involved in crude oil refining and petroleum products.
The company also declared a preference dividend of 6.65%, amounting to Rs 15.94 crore for FY26.
The Bottom Line
Chennai Petroleum’s latest results highlight a strong improvement in profitability, driven mainly by lower costs.
The 540% dividend is a major highlight and signals strong returns for shareholders.
Even though the stock saw a short-term dip, its long-term performance remains impressive, making it a closely watched player in the oil and energy sector.
