CPCL, MRPL share price movement

Chennai Petroleum Corporation (CPCL) and Mangalore Refinery and Petrochemicals (MRPL) surged up to 13 per cent on the BSE in Tuesday’s intra-day deals amid heavy volume in an otherwise weak market on rising crude oil prices. In comparison, the BSE Sensex was down 0.53 per cent at 78,129 at 02:02 PM.

Among individual stocks, CPCL hit a new high of ₹1,404.90, soaring 13 per cent on the back of six-fold jump in the average trading volume. A combined 11.2 million equity shares changed hands on the NSE and BSE. Thus far in the calendar year 2026, the market price of CPCL zoomed 66 per cent.

What’s driving stock price of CPCL?

CPCL is engaged in the refining and manufacturing of petroleum products. The company has a diversified product portfolio comprising transportation fuels, petrochemicals, industrial products, and specialty products, catering to both domestic and export markets. The company markets approximately 92 per cent of its production through Indian Oil’s extensive marketing network, while the remaining 8 per cent is directly marketed by CPCL.

CPCL delivered an outstanding operational results during the April to June 2026 quarter (Q1FY27), achieving a crude throughput of 2.85 million metric tonnes (MMT), compared to 2.98 MMT in the corresponding quarter of the previous financial year. This translates to a capacity utilisation of 108 per cent, underscoring efficient plant operations and high reliability and recorded its highest-ever distillate yield.

For the domestic refining industry, FY26-27 presents a mixed outlook. While India’s structural demand growth remains supported by economic expansion, urbanization, and increasing mobility, refining margins may be influenced by volatility in international crude oil and petroleum product prices; potential supply disruptions from key crude-producing regions; government policy interventions, including Special Additional Excise Duty (SAED) and other fiscal measures; fluctuations in petrochemical feedstock prices and demand and exchange rate movements and freight cost volatility, CPCL said in its FY26 annual report released on August 1.

MRPL – Q1 results, outlook

MRPL is engaged in the business of refining of crude oil and marketing of related products. The company is a subsidiary of Oil and Natural Gas Corporation (ONGC) which holds 71.63 per cent equity shares.

MRPL delivered a robust Q1FY27 revenue growth of 111.3 per cent year-on-year (YoY) to ₹38,200 crore, with adjusted profit after tax for Q1FY27 of ₹473.9 crore against loss of ₹270.7 crore in Q1FY26. The growth was driven by a robust product pricing and core middle-distillate strength.

While transient inventory headwinds compressed earnings before interest, taxes, depreciation, and amortization (EBITDA) margin by 166 bps YoY to 3.4 per cent, operational flexibility remained structurally intact. Domestic throughput expanded to 4.43 MMT, outpacing gasoline-heavy regional peers via a favourable diesel yield arbitrage backed by a high 11.7 Nelson Complexity Index. Elevated product spreads were further supported by continuing global capacity migration away from Europe and the structural removal of Chinese swing supply, analysts at Choice Institutional Equities said.

The brokerage firm revised upward its FY27E/28E Revenue/EBITDA by 5 per cent/2 per cent/5 per cent on the back of stronger product pricing as compared to its previous assumptions. However, analysts maintain target price of ₹215 with BUY rating on the stock.  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.