MRPL shares drop 5%; confirms compliance with Russian crude sanctions

MRPL clarified that the company doesn't foresee any negative impacts on sales to European markets, as it has stopped processing Russian crude

Shares of Mangalore Refinery and Petrochemicals Ltd. (MRPL) slipped nearly 5 per cent on Monday after the company said it stopped importing and processing Russian crude oil. 

 

The company's stock fell as much as 4.87 per cent during the day to ₹143.9 per share, the biggest intraday fall since January 16 this year. The stock pared losses to trade 4.5 per cent lower at ₹144.8 apiece, compared to a 0.59 per cent decline in Nifty 50 as of 12:54 PM. 

 

Shares of the company fell for the second straight session on Monday and currently trade at 1.7 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 5 per cent this year, compared to a 2.2 per cent decline in the benchmark Nifty 50. Mangalore Refinery has a total market capitalisation of ₹25,246.19 crore.

Mangalore Refinery stops processing Russian crude

The refinery has stopped processing Russian crude oil, finance director Devendra Kumar said during a conference call, according to Bloomberg. However, he clarified that the company doesn't foresee any negative impacts on sales to European markets, as it has stopped processing Russian crude. 

 

The company will continue to comply with the international sanctions regime or government guidelines, Kumar told analysts. The margin loss from not processing Russian crude is being offset by higher product margins, he said. According to Bloomberg, nearly 40 per cent of the company's crude is now sourced from the Middle East, and 40 per cent of its total products are exported. 

MRPL Q3 results 

The company swung to profitability, reporting a profit before tax of ₹2,786 crore and a profit after tax of ₹1,812 crore, compared with losses in the same period last year. Total borrowings declined sharply to ₹9,290 crore from ₹12,867 crore, while the debt-to-equity ratio improved to 0.63 as of December 31, 2025.

 

For the third quarter ended December 31, 2025, MRPL’s revenue from operations rose to ₹29,720 crore from ₹25,601 crore a year earlier. Ebitda for the quarter stood at ₹2,824 crore, reflecting improved operational efficiency.

 

During the nine-month period, the company reported revenue of ₹76,661 crore. On the operational front, MRPL processed 4.70 million metric tonnes of crude and other feedstock in the third quarter and 12.65 million metric tonnes over the nine months.