MRPL profit surges despite lower throughput as refining margins strengthen

Mangalore Refinery and Petrochemicals reported a sharp improvement in second-quarter earnings despite processing less crude and other feedstock, with the accompanying broker analysis attributing the performance to stronger refining economics.

The company’s October 14 release puts Q2 FY2026–27 standalone revenue at Rs.35,590 crore, against Rs.25,953 crore a year earlier. Net profit increased to Rs.1,881 crore from Rs.639 crore, while reported EBITDA rose to Rs.3,210 crore from Rs.1,565 crore. Throughput declined to 4.18 million tonnes from 4.43 million tonnes.

Exports moved in the opposite direction to overall revenue, falling to Rs.6,327 crore from Rs.10,404 crore. Half-year standalone profit reached Rs.2,796 crore, compared with Rs.367 crore, and the board declared a Rs.3-per-share interim dividend.

The October 15 PL Research report calculates an implied gross refining margin of US$14.8 per barrel, versus US$8.3 in the preceding quarter and US$9.1 a year earlier. It cites lower sequential crude procurement costs and elevated product cracks. Its analytical EBITDA of Rs.3,280 crore differs from the company release’s Rs.3,210 crore; the two documents do not provide a reconciliation.

PL also records a provisional Rs.120-crore loss from a fire at the Coker Hydrotreater unit. Damaged assets have an estimated replacement value of Rs.225 crore, with final loss and insurance recovery subject to assessment.

Meanwhile, MRPL disclosed its 25% stake in newly incorporated ONGC Petrochemicals Marketing Limited and additional product-storage and loading arrangements. PL raised its target price to Rs.180 but retained Hold, forecasting lower refining margins in FY28–FY29. Those forecasts qualify the earnings outlook without altering the company’s reported quarterly improvement.