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New Delhi: Mangalore Refinery and Petrochemicals Ltd (MRPL) reported a standalone net profit of Rs 1,881 crore for the July-September quarter of 2026-27 (Q2). That was nearly three times the Rs 639 crore it earned in the same quarter last year. The jump came even as throughput of crude and other inputs fell to 4.18 million metric tonnes (MMT) from 4.43 MMT. Revenue from operations rose 37.1 percent to Rs 35,590 crore, according to the results approved by the company’s board on Wednesday.
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The half-year figures for the Oil and Natural Gas Corporation (ONGC) subsidiary went further. Standalone net profit for April-September (H1) rose to Rs 2,796 crore from Rs 367 crore a year earlier. That was already 44.8 percent more than the Rs 1,931 crore MRPL earned in the whole of 2025-26. The board also declared a first interim dividend of Rs 3 per share for 2026-27.
Compared with the April-June quarter (Q1), standalone net profit rose 105.6 percent from Rs 915 crore. Revenue fell 14.5 percent from Rs 41,609 crore in Q1. Total expenses fell faster, however, dropping 19.4 percent to Rs 33,002 crore. Most of that came from the cost of materials consumed, MRPL’s largest expense, which fell to Rs 29,109 crore from Rs 35,242 crore in Q1. Year-on-year, the same cost was 41.6 percent higher than the Rs 20,551 crore of Q2 2025-26.
Profit before Tax (PBT) rose to Rs 2,519 crore, from Rs 975 crore a year earlier and Rs 1,215 crore in Q1. The Q1 figure included exceptional income of Rs 471.76 crore. According to the notes to the results, this arose from a revision of certain petroleum product prices on supplies made in an earlier period. Q2 instead carried an exceptional loss of Rs 118.76 crore from a fire at the refinery. Before exceptional items, Q2 profit before tax was Rs 2,638 crore, more than three and a half times the Rs 743 crore of Q1.
Earnings before interest, tax, depreciation and amortisation (EBITDA) more than doubled year-on-year to Rs 3,210 crore from Rs 1,565 crore, according to the company’s statement. MRPL reported H1 EBITDA of Rs 5,070 crore, so Q1 EBITDA was Rs 1,860 crore. That puts Q2 EBITDA 72.6 percent above Q1.
Margins widened with the profit. The company’s operating margin was 8.82 percent in Q2, against 4.93 percent a year earlier and 2.41 percent in Q1. Its net profit margin was 5.77 percent, up from 2.82 percent a year earlier and 2.41 percent in Q1.
A lower tax rate also lifted net profit. From 2026-27, MRPL opted for the lower tax rate under Section 200 of the Income Tax Act, 2025. According to the notes, this brought its effective tax rate down to 25.168 percent from 34.944 percent. The company can also carry forward its accumulated minimum alternate tax (MAT) credit, subject to conditions. As a result, net profit grew faster than profit before tax. Year-on-year, profit before tax rose 158.4 percent while net profit rose 194.5 percent.
Some costs went the other way. Finance costs rose to Rs 284 crore, from Rs 219 crore a year earlier and Rs 244 crore in Q1. Depreciation and amortisation was Rs 407 crore, up from Rs 371 crore a year earlier. Other income fell to Rs 49.51 crore from Rs 76.36 crore. Earnings per share (EPS) for the quarter came to Rs 10.73, against Rs 3.64 a year earlier and Rs 5.22 in Q1.
The consolidated results include MRPL’s share in its joint venture (JV), Shell MRPL Aviation Fuels and Services Ltd, and they followed the standalone numbers closely. Consolidated net profit rose 203 percent year-on-year to Rs 1,901 crore from Rs 627 crore. Against Q1’s Rs 946 crore, it was up 101 percent. Consolidated revenue matched the standalone figure of Rs 35,590 crore.
The JV contributed Rs 19.87 crore in Q2. That was down from Rs 30.86 crore in Q1 but up from Rs 3.69 crore a year earlier. Consolidated profit before tax was Rs 2,539 crore, against Rs 963 crore a year earlier and Rs 1,246 crore in Q1. Consolidated EPS was Rs 10.85, compared with Rs 3.58 a year earlier and Rs 5.40 in Q1.
For the half year, standalone revenue from operations rose 64.5 percent to Rs 77,199 crore from Rs 46,942 crore. Profit before tax was Rs 3,734 crore against Rs 572 crore a year earlier. This included net exceptional income of Rs 353 crore, made up of the Q1 price-revision income less the Q2 fire loss. Before exceptional items, H1 profit before tax was Rs 3,381 crore.
Net profit rose 7.6 times to Rs 2,796 crore, and EBITDA rose 184.5 percent to Rs 5,070 crore from Rs 1,782 crore. EPS for the half year was Rs 15.95, against Rs 2.09 a year earlier. The operating margin widened to 5.37 percent from 2.34 percent, while the net profit margin rose to 3.96 percent from 0.92 percent.
H1 consolidated net profit was Rs 2,846 crore, up from Rs 357 crore a year earlier, which made it nearly eight times higher. It was also 47.9 percent above the consolidated net profit of Rs 1,925 crore for all of 2025-26. The JV’s share of profit rose to Rs 50.73 crore in H1 from Rs 5 crore a year earlier. Consolidated profit before tax was Rs 3,784 crore against Rs 562 crore, and consolidated EPS was Rs 16.24 against Rs 2.04.
The profit growth did not come from higher volumes. Q2 throughput of 4.18 MMT was 5.6 percent lower than the 4.43 MMT of Q2 2025-26. H1 throughput was 8.61 MMT, which means Q1 throughput was 4.43 MMT, so Q2 was also lower sequentially. For the half year as a whole, throughput rose 8.3 percent from 7.95 MMT, because Q1 2026-27 was well above the 3.52 MMT of Q1 2025-26.
Exports fell sharply year-on-year. Export revenue in Q2 was Rs 6,327 crore, down 39.2 percent from Rs 10,404 crore, even as total revenue rose by more than a third. Sequentially, exports were up 26.2 percent from Rs 5,012 crore in Q1. H1 exports fell 25.3 percent to Rs 11,339 crore from Rs 15,171 crore.
A fire broke out at the coker hydrotreater (CHT) unit in Phase III of the refinery complex on September 30, according to the auditors’ limited review report. Based on a preliminary assessment, MRPL provisionally estimated the financial impact at Rs 118.76 crore. The company said this covers the estimated carrying value of the damaged property, plant and equipment, along with losses on inventories and other incidental expenses. It put the replacement value of the damaged equipment at approximately Rs 225 crore.
MRPL said the affected assets are adequately insured. The loss will be reviewed in later reporting periods, and the final impact and insurance claims will be recognised once the applicable criteria are met.
MRPL cut its debt sharply during the half year. Total borrowings stood at Rs 9,245 crore on September 30, down 35.5 percent from Rs 14,334 crore on March 31 and 20 percent lower than the Rs 11,563 crore of June 30. Current borrowings fell to Rs 1,194 crore from Rs 5,829 crore in March. In H1, the company repaid a net Rs 4,473 crore of short-term borrowings. It also repaid Rs 907 crore of long-term debt while raising Rs 293 crore of new long-term borrowings.
As a result, the debt-to-equity ratio fell to 0.55 from 1.01 at the end of March and 0.79 a year earlier. Net worth rose 19.7 percent over the six months to Rs 16,958 crore. The interest service coverage ratio for Q2 was 11.31 times, up from 7.14 a year earlier.
Net cash from operations in H1 rose 38.8 percent to Rs 6,009 crore from Rs 4,328 crore. A Rs 4,722 crore increase in trade payables and other liabilities more than offset the cash tied up in higher inventories (Rs 2,328 crore) and receivables (Rs 1,811 crore). Inventories stood at Rs 16,750 crore on September 30, against Rs 14,422 crore in March. Spending on property, plant and equipment fell 41.6 percent to Rs 440 crore in H1. MRPL also said it had assessed the possible effects of ongoing geopolitical conditions and found no significant effect on the carrying amounts of its assets.
The board declared a first interim dividend of Rs 3 per equity share of face value Rs 10, or 30 percent, for 2026-27. The record date is October 21, and the dividend will be paid on or before November 4.
MRPL said it secured its first-ever international credit rating during the period, a “BBB−” with a stable outlook from Fitch Ratings. The company said this is at par with India’s sovereign rating.
On the marketing side, agreements to hire tankage for product storage at Goa for aviation turbine fuel (ATF) and at Kochi for petrol and diesel were finalised in Q2. Product loading also began at the Aegis Terminal in Mangaluru, the Hindupur depot in Andhra Pradesh and the Ennore terminal in Tamil Nadu. MRPL’s marketing terminal at Devangonthi in Bengaluru obtained International Sustainability and Carbon Certification – Carbon Offsetting and Reduction Scheme for International Aviation (ISCC CORSIA) certification. The certification covers the receipt, storage and blending of sustainable aviation fuel (SAF) with ATF.
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MRPL, ONGC and ONGC Petro additions Ltd (OPaL) incorporated a JV, ONGC Petrochemicals Marketing Ltd (OPML), on October 7. The new company will market petrochemicals, chemicals and kindred products. ONGC holds 50 percent, while MRPL and OPaL hold 25 percent each, and transactions between OPML and MRPL are expected to begin shortly.
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