MRPL slides 8% after weak Q4; PL Capital cuts to 'Sell', sees 23% downside

Mangalore Refinery and Petrochemicals share price today

Shares of Mangalore Refinery plunged nearly 8 per cent on Monday, April 27, on the National Stock Exchange (NSE) after the company reported over 68 per cent decline in its net profit for the March 2026 quarter (Q4FY26). 

 

Around 01:20 PM, MRPL stock was trading 6.9 per cent lower at ₹173.53, compared to the previous session's close of ₹186.38 on the NSE. In comparison, the NSE Nifty50 was quoting at 24,105.25 levels, up by 207.30 points or 0.87 per cent. The market capitalisation of the company stood at ₹30,446.15 crore. The stock price has declined around 19 per cent from its 52-week high of ₹212.31 touched on March 6, 2026.

 

Mangalore Refinery Q4 results

In the Q4FY26, Mangalore Refinery reported a net profit of ₹117 crore, down 68.43 per cent from ₹371 crore in the year-ago period. The company's revenue from operations increased 3.2 per cent to ₹28,493 crore as against ₹27,602 crore in the year-ago period. 

 

The company's earnings before interest, tax, depreciation and amortisation (Ebitda) increased 58 per cent to ₹1,783.1 crore compared to ₹1,128.8 crore in Q4FY25. Its Ebitda margins improved to 6.3 per cent from 4.1 per cent in the same quarter of previous fiscal. 

 

For the full FY26, MRPL's revenue from operations stood at ₹1,05,155 crore, compared with ₹1,09,280 crore in FY25. However, profit after tax surged sharply to ₹1,931 crore from ₹51 crore in the previous fiscal. 

 

The company's board has not recommended a final dividend for FY26.

PL Capital on Mangalore Refinery

According to PL Capital, MRPL reported a weak performance in Q4FY26, with Ebitda coming in at ₹1783.1 crore, sharply lower than ₹27.8 billion in Q3FY26 and below its estimates as well as consensus forecasts. The miss was primarily due to higher employee and other expenses, including a forex loss of ₹6.1 billion. Profit after tax dropped to ₹117 crore, also missing estimates. Throughput for the quarter declined to 4.4 million metric tonnes from 4.7 million tonnes in Q3FY26.

 

The brokerage noted that MRPL achieved its target of adding 250 retail outlets in FY26, taking the total to 252 outlets. The company plans to significantly scale up its marketing presence, with a target to expand its retail network to 1,000 outlets over the next five years. 

Analysts expect gross refining margins at $7.7 and $7.4 per barrel for FY27 and FY28, respectively. The stock is currently valued at about 7.8x and 7.7x EV/Ebitda for FY27E and FY28E.

 

The brokerage has downgraded the stock to ‘Sell’ from ‘Accumulate’ and cut its target price to ₹143 from ₹192 earlier, valuing it at 6x FY28E EV/Ebitda. The downgrade reflects a rise in debt levels. However, it has assigned an option value of ₹22 per share to the company’s chemicals business, which is still a few years away from commercialisation.  =============  Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.