Synopsis:
MRPL reported a weak Q1 FY26, with net profit slipping to a loss of Rs. 271 crore and revenue down 29.4 percent Q-o-Q. Despite record crude processing in April, profitability was hit by poor margins and realizations. The stock fell over 8 percent as investor sentiment turned cautious.
One of India’s major PSU refiners faced selling pressure today after reporting disappointing Q1 FY26 results. Profitability slumped both sequentially and annually, hit by weak margins and lower realizations. Even though the company achieved record crude processing in April, the poor earnings kept investor confidence muted.
The company in focus is Mangalore Refinery and Petrochemicals Limited, which holds a market capitalization of Rs. 24,545 crore. The stock opened today at Rs. 140.05, lower than its previous close of Rs. 149.35, and touched an intraday low of Rs. 136.70. This marks a decline of approximately 8.46 percent from the previous closing price, reflecting investor concerns over the sharp fall in quarterly earnings.
What’s the News?
On a Quarter-on-Quarter basis, Revenue from operations declined by 29.4 percent, falling from Rs. 24,596 crore in March 2025 to Rs. 17,356 crore. Operating profit contracted by 84.1 percent, dropping from Rs. 1,130 crore to Rs. 180 crore. Profit before tax turned negative, falling from a profit of Rs. 592 crore to a loss of Rs. 402 crore. Similarly, net profit turned into a loss of Rs. 271 crore from a profit of Rs. 371 crore recorded in the previous quarter.
On a Year-on-Year basis, Revenue from operations decreased by 25.3 percent from Rs. 23,247 crore in Q1 FY25 to Rs. 17,356 crore in Q1 FY26. Operating profit declined by 70.3 percent, reducing from Rs. 606 crore to Rs. 180 crore. Profit before tax recorded a loss of Rs. 402 crore from a profit of Rs. 108 crore a year earlier. Net profit plunged from Rs. 73 crore in Q1 FY25 to a loss of Rs. 271 crore in Q1 FY26.
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The company’s Return on Capital Employed (ROCE) stands at 4.33 percent, while Return on Equity (ROE) is at a modest 0.43 percent. The debt-to-equity ratio is slightly elevated at 1.01, indicating moderate leverage. The Return on Assets (ROA) is a low 0.16 percent, and the dividend yield stands at 2.13 percent, offering some relief to shareholders.
Despite the challenging quarter, MRPL highlighted a significant operational achievement in the form of the highest ever crude processing for any April month, recording 1,512 TMT in April 2025, surpassing the previous record of 1,481 TMT set in April 2022. Notably, promoter holding in the company remains unchanged.
About the Company
Mangalore Refinery and Petrochemicals Limited, established as a joint venture between the AV Birla Group and Hindustan Petroleum Corporation Limited, is now a subsidiary of Oil and Natural Gas Corporation (ONGC). The company is primarily engaged in the business of crude oil refining, petrochemicals, trading of aviation fuels, and distribution of petroleum products through retail outlets and transport terminals.
Written by – Manan Gangwar
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