Bumper Rs 54 Dividend: Dolly Khanna’s Low-PE Stock in Focus as Q4FY26 Profit Jumps Over 3x

With the Q4FY26 and full-year FY26 earnings season gathering pace, several companies are drawing investor attention through strong earnings, Dividend announcements and key corporate updates. One such stock likely to remain in focus is Chennai Petroleum Corporation Limited (CPCL), after the company announced a robust final dividend of Rs 54 per share along with its results for the quarter and year ended March 31, 2026.

For Q4FY26, CPCL reported revenue from operations of Rs 20,455 crore, marginally down by 0.61 per cent YoY from Rs 20,581 crore in the corresponding quarter last year. Net profit more than tripled to Rs 1,422 crore, compared with Rs 470 crore in the same period last year, marking a 202.55 per cent YoY rise. On a consolidated basis, the company reported a Profit After Tax of Rs 3,103 crore for FY26.

Operationally, CPCL delivered a steady performance during the quarter, achieving crude throughput of 2.93 million metric tonnes (MMT), compared with 2.97 MMT in the same quarter last year. Capacity utilisation stood at 112 per cent, reflecting strong plant reliability and efficient operations. For FY26, crude throughput increased to 11.71 MMT, compared with 10.45 MMT in the previous year. The company also maintained its best-ever distillate yield of around 80 per cent, highlighting its focus on operational efficiency.

The company’s Gross Refining Margin improved significantly to USD 13.75 per barrel in Q4FY26, compared with USD 6.22 per barrel in the same period last year. For the full year, GRM stood at US$9.28 per barrel, against USD 4.22 per barrel in the previous year.

The board has recommended a final dividend of Rs 54 per equity share with a face value of ₹10 each, in addition to the interim dividend of Rs 8 per share declared during the year.

An interesting investor angle is the holding of Ace Investor Dolly Khanna, known for her Small-Cap picks. She holds 1.30 per cent stake, or around 19,31,724 shares, in CPCL. If the final dividend is approved by shareholders at the Annual General Meeting, her dividend income from the final dividend alone would be approximately Rs 10.43 crore.

CPCL’s share price has gained nearly 7 per cent in April so far, while on a year-to-date basis, the stock is up around 24 per cent. Chennai Petroleum Corporation trades at a PE of 4.97x, with ROCE of 35.1 per cent and ROE of 32.1 per cent.

Chennai Petroleum Corporation Limited is a public sector undertaking under the Ministry of Petroleum and Natural Gas and operates as a group company of Indian Oil Corporation Limited. The company plays an important role in India’s downstream petroleum sector, supplying products such as LPG, petrol, aviation turbine fuel and high-speed diesel through its association with IOCL. It also directly markets specialty products such as paraffin wax, mineral turpentine oil, food-grade and pharma-grade hexane, and petrochemical feedstocks. CPCL is also among the few lube oil-based refineries in India, giving it a distinct position in the refining space.

Disclaimer: This article is for informational purposes only and not investment advice.