💰 Financial Performance

Revenue Growth by Segment

Overall consolidated revenue grew by 4.7% from INR 90,407 Cr in FY2024 to INR 94,682 Cr in FY2025. The retail segment showed significant growth, with sales value reaching approximately INR 15,400 Cr in FY2024, a 40% increase compared to INR 11,000 Cr in FY2022. Q2 FY2026 revenue was reported at INR 25,953 Cr.

Geographic Revenue Split

While a specific percentage split is not disclosed, the company leverages its coastal location for both domestic supply and exports. Domestic retail sales volume reached 2.6 MMT in FY2024, while the refinery's proximity to the New Mangalore Port facilitates cost-effective finished product exports.

Profitability Margins

Profitability saw a sharp decline in FY2025 due to global margin compression. Net Profit (PAT) margin plummeted from 4.00% in FY2024 to nearly 0.00% in FY2025, with PAT falling from INR 3,582 Cr to just INR 28 Cr. This was driven by Gross Refining Margins (GRMs) falling from $10.36/bbl to $4.45/bbl.

EBITDA Margin

The Operating Profit (OPBDIT/OI) margin contracted from 8.80% in FY2024 to 2.70% in FY2025. However, Q2 FY2026 showed a recovery with an EBITDA of INR 1,565 Cr, driven by a restoration of throughput to 4.5 MMT and improved product cracks compared to the previous quarter.

Capital Expenditure

Historical CAPEX includes the Phase-III expansion which increased capacity to 15 MMTPA and the commissioning of a 440 KTPA polypropylene unit. Borrowings stood at INR 24,062 Cr as of March 2021, reflecting heavy investment in the integrated aromatic complex and refinery upgrades.

Credit Rating & Borrowing

MRPL maintains a strong credit profile backed by ONGC, with ratings of [ICRA]AAA(Stable). Borrowing costs are competitive, with some facilities linked to term SOFR + 125 bps. Financial flexibility is high due to 71.63% ownership by ONGC.

⚙️ Operational Drivers

Raw Materials

Crude oil is the primary raw material, representing the vast majority of the INR 94,654 Cr total expenses in FY2025. Other inputs include feedstocks for the 440 KTPA polypropylene unit and the aromatic complex.

Import Sources

Raw materials are primarily sourced globally and received via the New Mangalore Port. The company's coastal location allows it to maintain lower crude oil inventories compared to inland refineries, reducing carrying costs.

Key Suppliers

Major suppliers include parent company ONGC for crude oil. The company also maintains operational linkages with HPCL, which holds a 16.96% stake.

Capacity Expansion

Current installed refining capacity is 15 MMTPA. The company also operates a 440 KTPA polypropylene unit and a fully integrated aromatic complex (formerly OMPL) which was merged to optimize production of para-xylene and reformate.

Raw Material Costs

Raw material costs are highly volatile and linked to global crude prices. In FY2025, total expenses (primarily crude) consumed 99.9% of operating income, compared to approximately 91% in FY2024, illustrating the impact of narrowing crack spreads.

Manufacturing Efficiency

Capacity utilization is exceptionally high, with throughput at 121% in FY2025. Q2 FY2026 throughput was 4.5 MMT, recovering from 3.5 MMT in Q1 FY2026 following a planned maintenance shutdown.

Logistics & Distribution

Distribution is handled through 101 'HiQ' retail outlets and transport terminals. Proximity to the port provides a structural advantage for exporting surplus production without high inland freight costs.

📈 Strategic Growth

Expected Growth Rate

10%

Growth Strategy

Growth is targeted through the expansion of the 'HiQ' retail network in Karnataka and Kerala, and the optimization of the integrated aromatic complex. The company aims to maximize margins by switching production between para-xylene and reformate based on market prices.

Products & Services

Petrol (MS), Diesel (HSD), Polypropylene, Aviation Turbine Fuel (ATF), Para-xylene, Benzene, Reformate, and LPG.

Brand Portfolio

HiQ (Retail Fuel), MRPL.

New Products/Services

Expansion into the petrochemical segment via the 440 KTPA Polypropylene unit and integrated aromatics provides a hedge against volatile fuel margins.

Market Expansion

The company is aggressively expanding its domestic retail footprint, increasing sales volume from 1.9 MMT in FY2022 to 2.6 MMT in FY2024.

Market Share & Ranking

Not disclosed, but it is a major player on the Indian west coast.

Strategic Alliances

Shell MRPL Aviation Fuels and Services Limited is a 50/50 joint venture focused on the aviation fuel segment.

🌍 External Factors

Industry Trends

The industry is currently seeing a moderation in global refining margins due to ample supply. Long-term, the shift toward electric vehicles and renewable energy poses a threat to fossil fuel demand, though India's demand remains robust in the medium term.

Competitive Landscape

Competes with other major Indian refiners like Reliance Industries and PSU peers like IOCL and BPCL.

Competitive Moat

The moat is built on strong parentage (ONGC), which provides financial backing, and a strategic coastal location. This is sustainable as long as the company can successfully transition its product mix toward petrochemicals.

Macro Economic Sensitivity

Highly sensitive to global GDP growth and industrial activity, which dictate the demand for diesel and petrochemicals.

Consumer Behavior

Increasing domestic consumption of auto-fuels has supported the company's retail expansion strategy.

Geopolitical Risks

Geopolitical tensions in oil-producing regions can cause crude price spikes and supply disruptions, impacting the refinery's input costs and throughput.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Ministry of Petroleum and Natural Gas (MoP&NG). The company is subject to CPSE guidelines regarding board appointments and operational mandates.

Environmental Compliance

MRPL is compliant with current environmental regulations but faces long-term risks from tightening global emission standards and carbon taxes.

Taxation Policy Impact

The company typically operates at a standard corporate tax rate, with a 35% tax provision noted in profitable quarters like March 2024.

Legal Contingencies

The company was fined INR 5,42,800 each by BSE and NSE (Total INR 10.85 Lakhs) for non-compliance with Board composition requirements (Regulation 17(1)) for the quarter ended September 30, 2025.

⚠️ Risk Analysis

Key Uncertainties

Volatility in Gross Refining Margins (GRMs) is the primary uncertainty, as evidenced by the drop to $3.88/bbl in Q1 FY2026.

Geographic Concentration Risk

100% of refining assets are concentrated at the Mangalore site, creating high vulnerability to localized disruptions.

Third Party Dependencies

High dependency on the Government of India (MoP&NG) for the nomination of directors, which led to recent regulatory fines for board non-compliance.

Technology Obsolescence Risk

Risk of declining demand for traditional fossil fuels over the next 10-20 years as India moves toward green energy.

Credit & Counterparty Risk

Liquidity is considered adequate due to INR 28,548 Cr in rated credit facilities and strong support from ONGC.