Chelsea made £1.4m for the year ended June 30, 2012 with their Champions League campaign playing a major part and the club says it is now also debt free.
The results will be a huge boost to the club's efforts to comply with UEFA's new financial fair play regulations, which will oblige clubs in European competition to break even.
The club also had record group turnover of £255.7m, up from £225.6m.
A Chelsea statement said: "The £1.4m profit contrasts with a loss of £67.7m in the previous financial year and puts the club in a strong position to comply with UEFA financial fair play criteria for the coming seasons.
"The club also enjoyed an uplift in revenues from commercial activities including new partners and merchandising."
The statement added that debt of £166.6m was turned into equity during the course of the year "making Chelsea FC plc debt free".
Chelsea chief executive Ron Gourlay said: "Our club philosophy is built on success. We had that success on the field this year, as we were the first London team to win the UEFA Champions League, and we enjoyed it off the field as well and this helps us inject financial investment into the team.
"The big challenge is always to have a successful team on the field that wins trophies and to make a profit at the same time.
"The objectives have been set across the whole business, from the Academy to Under-21s and all the way through to the first team."