Dividend Stock: Refiner falls over 6% despite announcing highest payout in two years

Shares of Chennai Petroleum Corporation Ltd declined over 6% in trade on Friday, even as the company announced its highest dividend payout in two years alongside its March quarter earnings.As of 02:12 PM, the stock was trading at ₹1,008 on the NSE, down ₹61.30, after hitting an intraday low of ₹995.

The board recommended a final equity dividend of ₹54 per share (540%) for FY26, subject to shareholder approval at the upcoming annual general meeting. This is in addition to the interim dividend of ₹8 per share declared earlier during the financial year, taking the total payout to ₹62 per share — the highest in two years, based on recent dividend history.
The company also recommended a preference dividend of 6.65%, amounting to ₹15.94 crore for FY26, on outstanding preference shares up to their redemption date in September 2025.On the earnings front, Chennai Petroleum, a subsidiary of Indian Oil Corporation, reported a strong sequential performance. Net profit rose 42% quarter-on-quarter to ₹1,421 crore, while revenue increased 7% to ₹16,817 crore.

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EBITDA jumped 38% to ₹2,035 crore, with margins expanding to 12.1% from 9.4% in the previous quarter, reflecting improved operational performance.

Despite the strong earnings and higher dividend payout, the stock came under pressure, indicating profit-booking or cautious sentiment after recent gains.