Chennai Petro shares surge on plans to set up retail fuel outlets

Shares of Chennai Petroleum Corporation (Chennai Petro) rose as much as 1.89% to hit an intraday high of ₹663.45 on the National Stock Exchange after the company informed exchanges that it plans to set up a network of retail fuel outlets with an investment of ₹400 crore. On the BSE, Chennai Petro shares advanced as much as 1.75% to hit an intraday high of ₹662.80.

Chennai Petro plans to sell petrol and diesel by setting up a retail network, marking its re-entry into the direct fuel retail segment nearly two decades after its earlier exit.

"An initial capital expenditure of approximately ₹400 crore has been earmarked for this project over the next two to three years. The first phase of retail outlets is expected to be launched during CPCL’s Diamond Jubilee year, with site selection being carried out based on market potential and strategic location analysis," Chennai Petro said in a press release.

The rollout is being approached cautiously, with further expansion into other states planned based on market response and prevailing conditions. The initiative is aimed at addressing existing market demand and expanding CPCL’s presence in the fuel retail segment. This move is considered part of CPCL’s broader strategy to diversify its business portfolio and build sustainable value over time, Chennai Petro added.

Chennai Petro's net profit in March quarter fell 26% to ₹450 crore from ₹612 crore in the same period last year.

Its revenue from operations declined 1.16% to ₹20,580.63 crore in Q4 from ₹20,822.95 crore in the year-ago period.

As of 2:55 pm, Chennai Petro shares traded 0.70% higher at ₹655.70 outperforming the NIFTY500 index which was up 0.4%.