Synopsis:
Mangalore Refinery and Petrochemicals Ltd (MRPL) reported a strong financial turnaround in Q2FY26, with net profit jumping to Rs. 627 crore from a loss of Rs. 697 crore year-on-year. The refinery benefited from higher crude throughput and record dispatches at the Devangonthi terminal.
A refining and petrochemicals stock gained robust traction after reporting its Q2FY26 results, driven by a sharp turnaround in profitability and improved operational performance. Quarterly revenue expanded on higher crude processing, while net profit swung from a loss to a substantial gain, reflecting renewed investor confidence in the company’s turnaround strategy.
Mangalore Refinery and Petrochemicals Ltd has a market capitalization of Rs. 25,263.71 crore. The stock opened at Rs. 151.45, reached a high of Rs. 154.55, and closed previously at Rs. 142, marking an intraday gain of approximately 8.9 percent.
What’s the News?
Mangalore Refinery and Petrochemicals Ltd has released its Q2FY26 results, reporting a strong financial turnaround. Quarter-on-Quarter, MRPL’s revenue increased from Rs. 17,356 crore to Rs. 22,649 crore, a rise of 30.5 percent.
Operating profit jumped from Rs. 180 crore to Rs. 1,489 crore, up 727.2 percent. Profit Before Tax (PBT) turned positive at Rs. 963 crore from a loss of Rs. 402 crore, and net profit rose to Rs. 627 crore from a prior loss of Rs. 271 crore. Operating margin improved from 1 percent to 7 percent, and earnings per share expanded from Rs. -1.54 to Rs. 3.58.
Year-on-Year, revenue declined from Rs. 24,968 crore to Rs. 22,649 crore, down 9.3 percent. However, operating profit surged from a loss of Rs. 474 crore to Rs. 1,489 crore, while PBT rose from a loss of Rs. 1,056 crore to Rs. 963 crore.
Net profit improved from Rs. -697 crore to Rs. 627 crore, with operating margins turning positive at 7 percent from -2 percent, and EPS increasing from Rs. -3.98 to Rs. 3.58.
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Operational Highlights
MRPL processed its first batch of new crude from the Kuwait Neutral Zone (API 31.00) in September 2025. The Devangonthi terminal recorded its highest monthly dispatch of 65.40 TKL in September 2025, surpassing the previous peak of 57.90 TKL in May 2025. These operational improvements contributed significantly to the quarterly turnaround in profitability.
About the Company
Mangalore Refinery and Petrochemicals Ltd was initially established as a joint venture between the AV Birla Group and Hindustan Petroleum Corporation Limited. The company operates a refinery at Mangalore with a capacity of 15 million metric tonnes per annum.
After deregulation in 1998, MRPL faced volatile margins and high debt obligations, resulting in historical losses. ONGC gradually acquired majority control, eventually increasing its stake to 72 percent.
Strategic investments, management changes, and capacity expansions, including the commissioning of Phase-III refining facilities and a polypropylene unit, enabled MRPL to achieve sustained financial stability. The company also merged its subsidiary ONGC Mangalore Petrochemicals Limited, consolidating its operations.
Written By Manan Gangwar
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