Shares of Chennai Petroleum Corporation Ltd. (CPCL) and Garden Reach Shipbuilders & Engineers Ltd. (GRSE) gained up to 5% after the Government of India conferred Navratna status on the two public sector enterprises.
Navratna status gives qualifying PSUs greater flexibility to make investments and pursue expansion plans without seeking prior government approval.
Navratna status is granted to select public sector enterprises that have demonstrated strong financial performance and operational capabilities.
To become a Navratna company, a PSU must:
- Be a Miniratna Category-I company for at least three years.
- Maintain a consistent record of profitability.
- Have a positive net worth.
- Report strong turnover.
- Follow sound corporate governance practices.
- Receive satisfactory performance ratings from the Department of Public Enterprises (DPE).
Navratna companies are allowed to invest up to:
- ₹1,000 crore, or
- 15% of their net worth
in a single project without prior government approval.
The status is intended to improve efficiency and help PSUs compete more effectively in domestic and international markets.
Chennai Petroleum Corporation Ltd.
Shares of Chennai Petroleum Corporation Ltd. rose as much as 2.75% to an intraday high of ₹1,128.55.
The stock later pared some gains and was trading at ₹1,118.55.
The company had a market capitalisation of ₹16,656.48 crore.
About the company
CPCL is a public-sector oil refining company based in Chennai.
A subsidiary of Indian Oil Corporation Ltd., it operates under the Ministry of Petroleum and Natural Gas and produces fuels and specialty products for various sectors.
Q4 FY26 performance
Revenue
- Q4 FY26: ₹16,817 crore
- Q4 FY25: ₹17,249 crore
Revenue declined by 2.5% year-on-year.
Net profit
- Q4 FY26: ₹1,422 crore
- Q4 FY25: ₹470 crore
Profit increased by 202.55% compared with the year-ago period.
Garden Reach Shipbuilders & Engineers Ltd.
Shares of GRSE climbed nearly 4.92% to an intraday high of ₹2,935.
The stock later traded at ₹2,904.55.
The company had a market capitalisation of ₹33,272.20 crore.
About the company
GRSE is a defence PSU under the Ministry of Defence.
Headquartered in Kolkata, the company builds warships and other vessels for:
- Indian Navy
- Indian Coast Guard
- Other defence agencies
It also contributes to India’s maritime exports and defence manufacturing capabilities.
Q4 FY26 performance
Revenue
- Q4 FY26: ₹2,119 crore
- Q4 FY25: ₹1,642 crore
Revenue rose by 29.05% year-on-year.
Net profit
- Q4 FY26: ₹303 crore
- Q4 FY25: ₹244 crore
Net profit increased by 24.18%.
TL;DR:
Chennai Petroleum and Garden Reach Shipbuilders gained up to 5% after receiving Navratna status from the government. The designation provides greater investment and operational autonomy to high-performing public sector enterprises.
AI Summary:
- CPCL and GRSE received Navratna status from the government.
- Navratna companies enjoy greater financial autonomy.
- CPCL shares rose nearly 3%, while GRSE gained almost 5%.
- CPCL reported a sharp jump in Q4 profit.
- GRSE posted growth in both revenue and net profit.
