Summary:
Mangalore Refinery and Petrochemicals Ltd. (MRPL) has made a strong comeback in Q2 FY26, reporting a net profit of ₹974 crore compared to a loss of ₹402 crore in Q1. The company’s EBITDA surged 139% quarter-on-quarter to ₹1,488 crore, while operating margins expanded 300 basis points to 6.5%, reflecting improved refining economics and higher crude throughput.
Financial Performance Highlights
MRPL, jointly owned by ONGC (71.63%) and HPCL (16.96%), delivered a strong operational and financial turnaround in the September quarter:
- Revenue: ₹22,648 crore, up 27% sequentially from ₹17,798 crore in June.
- EBITDA: ₹1,488 crore, more than double the June quarter figure of ₹622 crore.
- Operating Margin: Expanded to 6.5% from 3.5% in the previous quarter.
- Net Profit: ₹974 crore, reversing a Q1 loss of ₹402 crore.
The significant improvement in margins is attributed to better refining economics, strategic crude sourcing, and optimized product yields, allowing MRPL to capitalize on improved market conditions.
Shareholding Pattern and Market Implications
MRPL has a concentrated promoter base, with ONGC and HPCL collectively holding 89% of shares, well above the minimum public shareholding threshold of 75%.
- Institutional Holdings: Mutual funds and foreign portfolio investors (FPIs) each hold approximately 1.2% of shares.
- Retail Investors: Nearly 5 lakh small investors, with authorized capital up to ₹2 lakh, own 6% of MRPL.
Due to this limited free float, the stock may experience volatile price movements, reacting sharply to market developments or quarterly earnings announcements.
Strategic Outlook
MRPL’s robust Q2 performance underscores its resilience amid challenging refining margins and volatile global oil markets. The company’s strong operational turnaround and high promoter confidence highlight its long-term growth potential.
As India continues to ramp up energy demand and refining capacity, MRPL is well-positioned to leverage domestic consumption growth, export opportunities, and strategic crude sourcing to sustain profitability.
Conclusion
The Q2 FY26 results signal a strong comeback for MRPL, with profitability restored, margins expanding, and operational efficiency improving. Coupled with a concentrated promoter holding and minimal free float, MRPL remains a key player in India’s refining sector, offering insights into market performance for investors, analysts, and stakeholders.
Disclaimer:
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