Refinery Blues: MRPL Q1 Turns Loss-Making Amid Margin Pressures and Lower Throughput

Unknown Apr 02, 2026 1,300 Views

Mangalore Refinery and Petrochemicals Ltd (MRPL) posted a challenging first quarter of FY26 (April–June quarter, 2025), having to fall back on a consolidated net loss of ₹2.71 billion, in contrast to its profit last year during the same quarter. The result is a reflection of the sustained h...

Key Highlights

Revenue Drop: Operation revenue on a consolidated basis decreased to ₹209.88 billion, 23–25% lower year on year from ₹272.89 billion in Q1 FY25.

Net Loss: The company posted a net loss of ₹2.71 billion compared with a net profit of ₹655.7 million in the corresponding period last year.

Profitability Pressure: EBITDA declined by nearly 70% to ₹1.79 billion, and the EBITDA margin weakened to a paltry 1% from 2.5% in the previous year.

Narrowing Refining Margins: Gross refining margin (GRM) dropped to $3.88 a barrel from $4.70 in the fourth quarter, reflecting pressure on prices on world oil markets.

Throughput and Operations: Refinery throughput also declined overall, in part because of scheduled shutdowns of major units to perform maintenance. But in April 2025, record monthly crude processing was achieved, which indicates strength of operations.

Stock Reaction: MRPL shares rose 1% on Friday on the bad news, suggesting the market had already discounted much of the decline.

MRPL attributes its bad quarter to reduced demand and challenging market conditions on its top line and profitability. The company continues to be committed to navigating industry headwinds, improving operations, and pursuing growth opportunities despite volatility in the global oil economics.

Source: The Hindu BusinessLine, CNBC-TV18, MarketScreenerMangalore Refinery and Petrochemicals Ltd (MRPL) posted a challenging first quarter of FY26 (April–June quarter, 2025), having to fall back on a consolidated net loss of ₹2.71 billion, in contrast to its profit last year during the same quarter. The result is a reflection of the sustained headwinds for the state-owned refiner against the background of shrinking crude demand and falling refining margins.

Key Highlights Revenue Drop: Operation revenue on a consolidated basis decreased to ₹209.88 billion, 23–25% lower year on year from ₹272.89 billion in Q1 FY25.

Net Loss: The company posted a net loss of ₹2.71 billion compared with a net profit of ₹655.7 million in the corresponding period last year.

Profitability Pressure: EBITDA declined by nearly 70% to ₹1.79 billion, and the EBITDA margin weakened to a paltry 1% from 2.5% in the previous year.

Narrowing Refining Margins: Gross refining margin (GRM) dropped to $3.88 a barrel from $4.70 in the fourth quarter, reflecting pressure on prices on world oil markets.

Throughput and Operations: Refinery throughput also declined overall, in part because of scheduled shutdowns of major units to perform maintenance. But in April 2025, record monthly crude processing was achieved, which indicates strength of operations.

Stock Reaction: MRPL shares rose 1% on Friday on the bad news, suggesting the market had already discounted much of the decline.

Source: The Hindu BusinessLine, CNBC-TV18, MarketScreener

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