Synopsis: Petrochemical stock crashes 7% after its Q4 results. Revenue fell 3.08% QoQ to ₹23,950 crore, while net profit plummeted 91.9% QoQ to ₹117 crore, along with brokerage views on the results and operations.
The shares of a Mid-Cap company specialising in refining crude oil and producing a wide range of petroleum products, including high-speed diesel, motor spirit (petrol), kerosene, aviation turbine fuel, and bitumen, are in focus as they have crashed 7 percent following their Q4 results.
With a market capitalization of Rs. 30,442.64 crores in the day’s trade, the shares of Mangalore Refinery and Petrochemicals Ltd declined upto 7.4 percent, making a low of Rs. 172.70 per share compared to its previous closing price of Rs. 186.55 per share.
What Happened
Mangalore Refinery and Petrochemicals Ltd, engaged in refining crude oil and producing a wide range of petroleum products, including high-speed diesel, motor spirit (petrol), kerosene, aviation turbine fuel, and bitumen, is in the spotlight following their Q4 results as follows:
Its Revenue from operations declined by 2.6 percent YoY from Rs. 24,596 Crores in Q4FY25 to Rs. 23,950 Crores in Q4FY26, and it decreased by 3.08 percent QoQ from Rs. 24,712 Crores in Q3FY26 to Rs. 23,950 Crores in Q4FY26.
Its Net Profit YoY decreased by 68.4 percent from Rs. 371 Crores in Q4FY25 to Rs. 117 Crores in Q4FY26, and on a QoQ basis, it declined by 91.9 percent from Rs. 1,451 Crores in Q3FY26 to Rs. 117 Crores in Q4FY26. The earnings per share (EPS) for the quarterly period stood at Rs. 0.67, compared to Rs. 2.11 in the previous year’s quarter.
Brokerage Views on Q4 Results
Elara Capital on Mangalore Refinery And Petrochemicals Ltd
Elara Capital has maintained its “Accumulate” rating on Mangalore Refinery & Petrochemicals (MRPL) while revising its target price upward to Rs. 214 with an upside potential of 15 percent from the previous close.
Reason for the Target
Strong GRM environment supports earnings visibility
MRPL is benefiting from a robust Gross Refining Margin (GRM) environment, around ~$13.5/bbl. Higher global refining spreads improve per-barrel profitability. This directly boosts EBITDA potential and makes near-term earnings more predictable, supporting upward revision in EPS estimates and justifying a higher valuation multiple.
Sharp EBITDA growth despite mixed bottom line
EBITDA has increased ~58% YoY, reflecting strong core operational performance driven by favourable refining margins. However, PAT declined due to lower inventory gains and tax adjustments. This shows that the underlying business strength is improving even if accounting profits appear volatile in the short term.
Throughput decline limits full margin capture
Refining throughput has fallen by about 9% YoY, which restricts MRPL from fully capitalising on high GRMs. Lower crude processing reduces volume leverage, meaning earnings growth is driven mainly by margins rather than volumes, creating a partial offset to otherwise strong refining conditions.
Earnings remain cyclical and volatile
MRPL’s earnings are highly dependent on global refining crack spreads, which are cyclical and externally driven. Lack of deep downstream integration (like strong petrochemical or retail presence) increases earnings volatility, making the stock more sensitive to global oil market swings.
Valuation reflects cycle-driven recovery, not structural rerating
Elara values MRPL at ~6.7x forward EV/EBITDA, indicating it is viewed as a cyclical play rather than a structural growth story. The revised ₹214 target reflects improved near-term earnings due to strong GRMs, but also embeds caution due to dependency on global refining cycles.
Company Overview & Others
Mangalore Refinery and Petrochemicals Ltd (MRPL) is an oil refinery and petrochemical manufacturing company based in Mangalore, Karnataka, India. Established in 1988, it is a subsidiary of the Oil and Natural Gas Corporation (ONGC).
The company produces a wide range of petroleum products such as gasoline, diesel, kerosene, LPG, and other petrochemical products. MRPL also plays a key role in India’s energy sector by contributing to the country’s energy security. The company is involved in various initiatives to improve the efficiency of its operations and adopt environmentally sustainable practices.
The marketing terminal has now become fully operational, significantly enhancing the inland market. This has helped streamline throughput across various segments, including crude and other related products, with a total throughput of 4.35 MMT in Q4. The performance remains steady within the expected range of 16-18 MMT yearly.
Additionally, the company has successfully commissioned 85 new retail outlets within the last year, bringing the total number of outlets to 252. This expansion plays a crucial role in strengthening market reach and distribution capabilities.
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