Mangalore Refinery & Petrochemicals Ltd. (MRPL) AI Stock Analysis

• Market Cap: ₹309.33B
• Dividend Yield: 2.04%
• Average Volume (3M): 323.76K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 1.62
• Revenue Growth: -11.96%
• EPS Growth: 14.31%
• Country: IN
• Employees: 2,548
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 8.25
• Shares Outstanding: 1,752,598,800
• 10 Day Avg. Volume: 549,586
• 30 Day Avg. Volume: 323,759
• PEG Ratio: -4.27
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 26.64
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ₹195.00 ▲(28.84% Upside)

The score is driven primarily by improved profitability and stable leverage, tempered by weakening free cash flow and modest revenue growth. Technicals are a key positive with strong trend and momentum, while valuation appears reasonable with a modest dividend yield.

Positive Factors

Improved margins and profitability

Recent margin expansion to ~5.8% gross and ~5.0% EBIT reflects operational improvements and better product realizations. Sustained margin improvement enhances the refinery's ability to absorb crude price swings, support operating cash generation, and fund maintenance capex over the medium term.

Balanced leverage with equity cushion

A D/E around 1.0 with a ~37.7% equity ratio indicates moderate leverage and a meaningful equity buffer. In a capital-intensive refining business, this balance preserves financial flexibility for routine capex, turnaround funding, and cyclical downturns without immediate need for radical deleveraging or equity raises.

Stable downstream business model

Core operations converting crude to transport fuels and petrochemical feedstocks provide a durable revenue base tied to persistent domestic and export fuel demand. This structural demand supports predictable throughput needs and underpins long-term asset utilization and revenue resilience across cycles.

Negative Factors

Sharp free cash flow deterioration

An ~84% drop in free cash flow is a material weakening of cash generation that limits capacity to invest, pay down debt, or return capital. Over the medium term this raises refinancing and liquidity risk, and constrains strategic investments or upgrades needed to improve margins and competitiveness.

Weak revenue trend

Negative revenue growth indicates shrinking top-line scale which can amplify fixed-cost leverage in a capital-intensive refinery. Persistently weak revenues make sustaining margins harder, reduce reinvestment capacity, and limit the firm's ability to recover profitability during industry upcycles over the next several months.

Very low return on equity

An ROE near zero signals poor returns on shareholder capital and suggests the asset base is not being deployed profitably. Over a multi-month horizon this limits retained-earnings growth, weakens shareholder value creation, and may pressure management to restructure operations or capital allocation to improve returns.

Mangalore Refinery & Petrochemicals Ltd. Business Overview & Revenue Model

Company Description

Mangalore Refinery and Petrochemicals Limited manufactures and sells refined petroleum products in India. The company produces and sells bitumen, furnace oil, high speed diesel, xylol, naphtha pet coke, sulphur, and motor gasoline, as well as polypropylene and other products. The company was incorporated in 1988 and is based in Mangalore, India. Mangalore Refinery and Petrochemicals Limited is a subsidiary of Oil and Natural Gas Corporation Limited.

How the Company Makes Money

MRPL generates revenue primarily through the refining of crude oil into various petroleum products. The company purchases crude oil from various suppliers, refines it, and then sells the finished products to wholesalers, retailers, and large industrial customers. Key revenue streams include the sale of transportation fuels like petrol and diesel, which are in high demand in the Indian market. Additionally, MRPL produces and sells petrochemicals that serve as raw materials for various industries. The company benefits from its strategic location near a port, facilitating easy distribution and export of its products. Significant partnerships with oil marketing companies and a focus on cost-effective production enhance its earnings potential. Furthermore, government policies and regulations regarding fuel pricing and subsidies also play a crucial role in influencing MRPL's financial performance.

Mangalore Refinery & Petrochemicals Ltd. Financial Statement Overview

Summary

Profitability improved meaningfully with positive net profit and stronger gross/EBIT margins, but revenue growth is modest and cash generation weakened sharply with a steep free cash flow decline. Leverage is balanced (D/E ~1.01), yet low ROE and debt levels reduce financial flexibility.

Income Statement

Mangalore Refinery & Petrochemicals Ltd. shows significant improvement in profitability, with a positive net profit margin in the latest year compared to previous losses. Gross profit margin improved to 5.76%, and the EBIT margin reached 5.02%. However, the revenue growth rate from 2024 to 2025 was modest at 4.77%, indicating slower growth compared to prior years. The company's ability to sustain margins amidst fluctuating revenues is commendable.

Balance Sheet

The company maintains a relatively stable financial position with a Debt-to-Equity Ratio of 1.01, indicating balanced leverage. The Return on Equity (ROE) is low at 0.43%, reflecting limited profitability on equity capital. The Equity Ratio of 37.67% demonstrates a reasonable proportion of equity financing, providing a buffer against liabilities. However, high debt levels could pose risks if not managed effectively.

Cash Flow

Operating cash flow remains positive, but there is a sharp decline from previous periods. The Operating Cash Flow to Net Income Ratio of 33.42 indicates reliance on operations for cash generation. Free cash flow decreased significantly, with a growth rate of -83.83% from 2024 to 2025, which raises concerns about future liquidity and investment capacity. Maintaining positive free cash flow is crucial for future growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	889.98B	948.89B	903.34B	1.09T	697.58B	319.59B
Gross Profit	44.60B	48.50B	100.57B	98.42B	69.92B	24.66B
EBITDA	20.30B	24.68B	79.54B	78.22B	51.69B	5.62B
Net Income	-2.89B	562.05M	35.97B	26.55B	29.58B	-7.65B
Balance Sheet
Total Assets	0.00	344.35B	354.30B	351.45B	400.71B	347.29B
Cash, Cash Equivalents and Short-Term Investments	313.90M	313.90M	97.28M	389.20M	55.24M	258.25M
Total Debt	0.00	131.43B	126.87B	169.39B	213.10B	240.62B
Total Liabilities	-129.70B	214.65B	221.48B	252.81B	328.62B	304.81B
Stockholders Equity	129.70B	129.70B	132.83B	98.65B	72.09B	42.48B
Cash Flow
Free Cash Flow	0.00	8.88B	54.89B	56.62B	40.82B	-37.16B
Operating Cash Flow	0.00	18.78B	70.45B	63.64B	46.93B	-28.02B
Investing Cash Flow	0.00	-9.40B	-15.18B	-6.73B	-5.95B	-20.99B
Financing Cash Flow	0.00	-9.38B	-55.24B	-56.90B	-41.19B	49.25B

Mangalore Refinery & Petrochemicals Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 151.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MRPL, the sentiment is Positive. The current price of 151.35 is below the 20-day moving average (MA) of 152.69, below the 50-day MA of 153.01, and above the 200-day MA of 143.59, indicating a bullish trend. The MACD of 4.80 indicates Negative momentum. The RSI at 69.56 is Neutral, neither overbought nor oversold. The STOCH value of 90.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:MRPL.

Mangalore Refinery & Petrochemicals Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BPCL	76 Outperform	₹1.58T	6.32	―	4.73%	-1.35%	61.80%
PETRONET	75 Outperform	₹434.10B	11.83	―	3.58%	-13.73%	-7.20%
MRPL	71 Outperform	₹309.33B	14.20	―	2.04%	-11.96%	14.31%
GUJGASLTD	69 Neutral	₹292.77B	25.19	―	1.47%	-2.39%	-12.17%
IOC	68 Neutral	₹2.30T	9.03	―	4.90%	-0.93%	42.85%
HINDPETRO	67 Neutral	₹908.26B	5.90	―	3.26%	-1.81%	231.75%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Mangalore Refinery & Petrochemicals Ltd. Corporate Events

MRPL Swings to Strong Profit, Cuts Debt and Diversifies Crude in Q3 FY26

MRPL’s board has approved the standalone and consolidated unaudited financial results for the third quarter and nine months ended 31 December 2025, reporting a sharp improvement in profitability and balance sheet metrics. For Q3 FY 2025-26, revenue from operations rose to ₹29,720 crore from ₹25,601 crore a year earlier, while profit before tax jumped to ₹2,214 crore from ₹469 crore and profit after tax increased to ₹1,445 crore from ₹304 crore, accompanied by an improvement in the debt-equity ratio to 0.63 from 0.79 at end-September 2025. Over the first nine months of FY 2025-26, MRPL posted revenue of ₹76,661 crore versus ₹81,676 crore in the prior-year period but swung from a loss to a profit, with profit before tax of ₹2,786 crore against a loss of ₹471 crore and profit after tax of ₹1,812 crore versus a loss of ₹313 crore, while total borrowings were cut from ₹12,867 crore to ₹9,290 crore and the debt-equity ratio improved from 0.99 to 0.63. Operationally, refinery throughput reached 4.70 MMT in Q3 and 12.65 MMT for the nine months, the company began using leased cavern storage from ISPRL in Mangalore for crude and commenced processing from this facility, and processed Libya’s Sarir Mesla crude for the first time, underscoring efforts to diversify crude sourcing and enhance infrastructure utilization.

MRPL Says Surge in Share Trading Volumes Is Market-Driven, Denies Undisclosed Developments

Mangalore Refinery and Petrochemicals Limited has clarified to stock exchanges that the recent sharp increase in trading volumes of its shares is not backed by any undisclosed price-sensitive information. Responding to a query from the National Stock Exchange’s surveillance team, the company stated that there is no pending event requiring disclosure under securities regulations and attributed the spike in volumes to market-driven factors, signaling to investors and regulators that no internal corporate development is behind the recent activity in the stock.