Mangalore Refinery and Petrochemicals Limited (MRPL) reported a standalone net profit of ₹1,881 crore for the second quarter of FY2026-27, a significant increase compared to the previous year. The company’s EBITDA stood at ₹3,210 crore. The transcript details performance drivers, including crude sourcing strategies amidst global challenges, retail network expansion, and a provisional loss booked due to a fire incident. The company also declared an interim dividend of ₹3 per share.
MRPL Announces Strong Q2 FY2026-27 Performance
Mangalore Refinery and Petrochemicals Limited (MRPL) has disclosed its financial and operational results for the second quarter and first half of the financial year 2026-27. The company reported a standalone net profit of ₹1,881 crore for Q2 FY2026-27, a substantial rise from ₹639 crore in the corresponding quarter of the previous year. The EBITDA for the quarter was ₹3,210 crore.
Key Financial Highlights
For the half-year ended September 30, 2026, MRPL’s net profit stood at ₹2,796 crore, compared to ₹367 crore in the same period of the previous year. Reflecting the positive performance, the Board has declared an interim dividend of ₹3 per share, amounting to a total dividend payout of ₹526 crore. Borrowings saw a significant reduction, falling by over ₹5,000 crore to ₹9,245 crore by the end of September 2026, leading to an improved debt-equity ratio of 0.55 from 1.01.
Operational Performance and Crude Sourcing
The company navigated challenging industry conditions, particularly in the refining sector, due to geopolitical situations impacting supply chains and freight costs. MRPL maintained its operations by diversifying crude sourcing, increasing domestic crude and spot purchases. In Q2, domestic crude accounted for about a quarter of the intake, term contracts for a fifth, and spot purchases for the balance, with Russian barrels making up approximately 32% of the Q2 basket.
Throughput for Q2 FY2026-27 was 4.18 MMT. The company has a retail network of 257 outlets and aims to expand it to about 500 outlets by FY2028. Planned capex for FY2026-27 is estimated between ₹1,200 crore and ₹1,500 crore.
Major Events and Developments
Significant events during the half-year included the formation of a JV company, OPML (ONGC Petrochemicals Marketing Limited), for marketing petrochemicals. MRPL also received authorization for a petroleum pipeline project from Devanagonthi to Bengaluru Airport, expected by 2029-30. For the first time, MRPL secured an international credit rating of BBB- (Stable) from Fitch International. A long-pending tax case was closed, resulting in a refund of ₹212 crore.
The company won two National Innovation Awards. However, a fire incident at the Coker Hydrotreater Unit (CHTU) on September 30, 2026, led to a provisional loss of ₹118.76 crore booked as an exceptional item in Q2, with an estimated replacement value of about ₹225 crore. The assets are adequately insured, and restoration is targeted by mid-December.
Source: BSE
