Chennai Petroleum Corporation shares fell 10% after the company reported a sequential decline in profit for the first quarter, even as revenue rose sharply.

The company's revenue from operations increased 43.5% quarter-on-quarter to ₹29,358.8 crore, while total income rose to ₹29,376.5 crore. However, profit before tax declined to ₹1,365.6 crore from ₹1,890.4 crore in the preceding quarter, as total expenses increased sharply.

Margins also contracted during the quarter, with the reported decline indicating pressure on profitability despite the higher operating revenue. The fall in profit and margin compression weighed on the stock in trade.

Chennai Petroleum Corporation Ltd. is an Indian refining company and a group company of Indian Oil Corporation, which holds a majority stake. A Mini Ratna Category-1 public sector undertaking under the Ministry of Petroleum and Natural Gas, CPCL operates refineries at Manali near Chennai and Cauvery Basin at Narimanam in Tamil Nadu, with a combined refining capacity of over 10 million metric tonnes per annum. The company's earnings are influenced by factors including crude oil prices, refinery throughput, product cracks, inventory movements, and operating costs. For PSU refiners such as CPCL, quarterly performance often reflects the combined effect of gross refining margins and the cost pressures associated with elevated crude prices, which can compress net realizations even when throughput volumes and revenue increase.