MRPL Q1 FY26: Loss of Rs 272 cr as GRM drops

Key takeaway from the June quarter

Mangalore Refinery and Petrochemicals Ltd (MRPL), a subsidiary of ONGC and a Schedule 'A' Mini Ratna Category-I company, reported a consolidated net loss of Rs 272 crore for Q1 FY26. The June quarter result marked a reversal from a profit reported in the same period last year, as revenue and refining margins weakened. The company also pointed to lower crude throughput during the quarter due to planned maintenance and shutdowns in its phase-2 complex.

MRPL’s own commentary indicated that some of the quarterly pressure was transient, linked to plant shutdowns and inventory loss. At the same time, the June quarter numbers show how sensitive profitability is to changes in gross refining margin (GRM) and throughput. Investors reacted negatively to the results, with the stock price dipping on Monday after the update.

Q1 FY26 financial snapshot

Revenue from operations for the quarter was reported at Rs 20,988 crore. In a separate headline summary, revenue was also cited at Rs 21,026 crore, while the quarterly table of results lists total revenue at Rs 20,988.03 crore. The company reported profit before tax (PBT) as a loss, and the quarter ended with a net loss after tax attributable to owners of Rs 271 crore, broadly in line with the Rs 272 crore loss figure.

A table of quarterly metrics also presented a quarter-on-quarter comparison between Jun 25 and Mar 26 (QoQ basis). It showed lower revenue and lower operating expenses sequentially, alongside a swing to losses at the operating income and net income level.

What changed versus the previous quarter (QoQ table)

The quarterly table (all figures in Rs crore) shows total revenue of Rs 20,988.03 crore in Jun 25 versus Rs 28,493.04 crore in Mar 26, a decline of 23.96% QoQ. Total operating expense fell to Rs 21,171.78 crore from Rs 27,104.57 crore, down 21.03% QoQ. Operating income in the table was negative at Rs -183.75 crore, compared with Rs 1,388.47 crore in the previous quarter.

Net income was shown at Rs -270.66 crore, compared with Rs 116.99 crore in Mar 26. Diluted normalized EPS was also negative at -1.54 versus 0.67 in the previous quarter.

Year-on-year pressure: revenue, EBITDA and PBT

For the June quarter, MRPL reported that revenue from operations fell to Rs 20,988 crore from Rs 27,289 crore in Q1 FY25. The same update also noted that standalone EBITDA fell to Rs 218 crore from Rs 650 crore a year ago. Profit before tax for the quarter was negative Rs 403 crore, compared with a Rs 101 crore profit in Q1 FY25.

The company attributed the weaker YoY performance to lower revenue and weaker refining margins, along with the impact of scheduled maintenance and shutdown of major units in its phase-2 complex.

Refining margin (GRM) moved lower

MRPL reported a GRM of $1.88 per barrel in Q1 FY26, down from $1.70 per barrel year-on-year, and lower than $1.23 per barrel in Q4 FY25. The company linked the quarterly loss to the plant shutdowns and inventory loss, and described both as transient effects.

In its market context commentary, MRPL said global refining margins were better during the quarter due to supply disruptions and normal demand growth, but crude price shocks impacted the bottom line in the last quarter.

Operations: throughput, yields and turnaround impact

On operating highlights, MRPL said it processed 3.52 million metric tons of crude and other feed stocks during the quarter. It added that volumes were lower year-on-year primarily because of a plant turnaround in April. The company also referenced record processing of 1.51 million metric tons, underscoring capacity once all units are online.

MRPL reported a distillate yield of 80.97% for the quarter. Fuel and loss was stated at 11.41%, while adjusted fuel and loss due to the turnaround would be around 10.1%.

Domestic demand signals mentioned by the company

MRPL’s commentary included domestic demand indicators, stating that diesel demand grew at an average of about 2% year-on-year, while gasoline demand remained resilient at around 7% growth. These demand trends provide context for refinery utilisation and product placement, even as quarterly profitability is heavily shaped by GRM and crude price movements.

What MRPL said about the next quarter

MRPL said all major units are back in service and it expects throughput in quarter 2 to be above 4.3 million metric tons. It also stated that GRM was already showing stronger in July.

While the company did not provide a full earnings outlook, the operational guidance on throughput and the comment on July margins were positioned as key supports for performance after the scheduled maintenance period.

Key numbers table

Profitability and longer-term metrics cited

Separately, MRPL’s longer-term summary metrics in the provided data set noted that earnings have been growing at an average annual rate of 0.5%, while the Oil and Gas industry saw earnings growing at 15.9% annually. Revenues have been growing at an average rate of 10.1% per year. The same summary stated a return on equity of 13.6% and net margins of 2.2%, with a net margin line item shown at 2.17%.

Conclusion

MRPL’s Q1 FY26 result was shaped by lower revenue, weaker GRM and the impact of scheduled shutdowns that reduced throughput. The company has said major units are back in service and expects higher throughput in Q2, with July GRM indicated as stronger. The next set of quarterly numbers will show how much the resumption of operations and margin movement translate into profitability.