Tamilnadu Petroproducts Q3 Net Profit Jumps 70% YoY Despite Revenue Decline
Tamilnadu Petroproducts delivered impressive Q3FY26 performance with consolidated net profit surging 70% to ₹199 crores and EBITDA margin expanding to 7.39% from 4.05% YoY. Despite revenue declining to ₹4.2 billion from ₹4.6 billion, the company demonstrated strong operational efficiency with EBITDA growing 67% to ₹311 crores, highlighting effective cost management strategies.
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Tamilnadu Petroproducts Limited delivered impressive profitability growth in Q3FY26 despite facing revenue headwinds. The company reported consolidated net profit of ₹199 crores compared to ₹117 crores in the corresponding quarter last year, marking a significant 70% year-on-year increase. However, quarterly revenue declined to ₹4.2 billion from ₹4.6 billion in Q3FY25.
Strong Profitability Performance
The company's operational efficiency improvements were evident in its EBITDA performance. Q3FY26 EBITDA surged to ₹311 crores from ₹186 crores in the previous year, representing a substantial 67% growth. More importantly, the EBITDA margin expanded significantly to 7.39% compared to 4.05% in Q3FY25, demonstrating enhanced operational leverage.
| Metric | Q3FY26 | Q3FY25 | Change |
|---|---|---|---|
| Consolidated Net Profit | ₹199 crores | ₹117 crores | +70% |
| Revenue | ₹4.2 billion | ₹4.6 billion | -8.7% |
| EBITDA | ₹311 crores | ₹186 crores | +67% |
| EBITDA Margin | 7.39% | 4.05% | +334 bps |
Detailed Financial Analysis
The standalone financial performance also showed robust growth with net profit after tax increasing to ₹1,764 lakhs compared to ₹1,031 lakhs in Q3FY25. For the nine-month period ended 31st December 2025, standalone net profit reached ₹8,293 lakhs, significantly higher than ₹2,651 lakhs in the same period last year.
| Financial Metric | Q3FY26 | Q3FY25 | Nine Months FY26 | Nine Months FY25 |
|---|---|---|---|---|
| Standalone Revenue | ₹42,092 lakhs | ₹45,895 lakhs | ₹1,33,984 lakhs | ₹1,36,898 lakhs |
| Standalone Net Profit | ₹1,764 lakhs | ₹1,031 lakhs | ₹8,293 lakhs | ₹2,651 lakhs |
| Consolidated Net Profit | ₹1,988 lakhs | ₹1,170 lakhs | ₹8,937 lakhs | ₹3,147 lakhs |
| Earnings Per Share | ₹2.21 | ₹1.30 | ₹9.93 | ₹3.50 |
Operational Efficiency Gains
The company's improved margin performance reflects better cost management across operations. Total expenses for the standalone business were ₹40,316 lakhs in Q3FY26 compared to ₹44,967 lakhs in Q3FY25. Major expense components included cost of materials consumed at ₹19,212 lakhs, power and fuel expenses of ₹7,849 lakhs, and referral charges of ₹4,987 lakhs for the quarter.
Key Corporate Developments
The company continues to address the lease renewal for land on which one of its manufacturing units operates. The lease expired on 12th June 2020, and a renewal request has been filed with the Government of Tamil Nadu. Management remains confident of obtaining the lease renewal and has accounted for the Right of Use Asset based on the expected lease renewal period.
Additionally, the company has assessed the impact of the four Labour Codes notified by the Government of India, with an incremental impact of ₹26.90 lakhs disclosed. Exceptional items for the nine-month period represent expenditure of ₹59 lakhs related to ongoing plant restoration activities following disruption caused by Cyclone Michaung.
Historical Stock Returns for Tamilnadu Petroproducts
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.01% | -3.21% | +1.01% | -16.72% | +28.91% | +123.94% |
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