Synopsis: Mangalore Refinery shares gained sharply after its parent company announced a major strategic oil storage project in Mangalore, raising investor expectations about the long-term benefits of the proposed development.
The shares engaged in the business of refining crude oil, petrochemical business, trading of aviation fuels and distribution of petroleum products jumped nearly 9 percent after ONGC plans to develop petroleum reserve in Mangalore.
With the market capitalization of Rs. 28,480 Crores, the shares of Mangalore Refinery And Petrochemicals Ltd reached an intraday high of Rs. 162.95 per share rising nearly 9 percent from its previous day close of Rs. 149.6 per share and is trading at a P/E of 14.8 whereas industry P/E stands at 5.57
Reason behind the surge
Mangalore Refinery & Petrochemicals Ltd. (MRPL) shares surged nearly 9 percent after its parent company, ONGC, announced plans to build a 1.75 million metric tonne (MT) strategic petroleum reserve (SPR) in Mangalore. The proposed project is aimed at increasing India’s emergency crude oil storage capacity and strengthening the country’s energy security during periods of global supply disruptions.
The announcement also drew attention because the reserve will be developed in Mangalore, where MRPL already operates a 300,000 barrels-per-day refinery and has established crude handling and storage infrastructure. Investors believe the new project could further strengthen the importance of the Mangalore energy hub over the long term.
ONGC also said it plans to seek the government’s approval to commercially use the storage facility, which could improve the project’s financial viability instead of keeping it only for emergency purposes. While the project is still at the proposal stage, the announcement improved market sentiment as investors expect it to enhance the strategic value of the Mangalore location and support future opportunities linked to crude oil storage and logistics.
About the company and financials
Mangalore Refinery & Petrochemicals Ltd. (MRPL) is a subsidiary of ONGC and one of India’s leading oil refining companies. Its refinery at Mangalore has a capacity of processing upto 16 API and is capable of handling a wide range of crude oil grades. The company produces petroleum products such as diesel, petrol, aviation turbine fuel (ATF), LPG, naphtha and petrochemical feedstocks. MRPL also exports refined products to several international markets while serving domestic fuel demand.
Year on Year analysis: Revenue from operations has decreased from Rs. 24,596 Crores in Q4 FY25 to Rs. 23,950 Crores in Q4 FY26, down 2.6 percent. Operating profit has increased from Rs. 1,130 Crores to Rs. 1,781 Crores, up 57 percent and net profit has decreased from Rs. 371 Crores to Rs. 117 Crores, down 63 percent.
Quarter on Quarter analysis: Revenue from operations has decreased from Rs. 24,712 Crores in Q3 FY26 to Rs. 23,950 Crores in Q4 FY26, down 3 percent. Operating profit has decreased from Rs. 2,785 Crores to Rs. 1,781 Crores, down 36 percent and net profit has decreased from Rs. 1451 Crores to Rs. 117 Crores, down 91 percent
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