Mangalore Refinery and Petrochemicals (500109) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 saw lower throughput at 3.52 MMT due to a planned plant turnaround, with April setting a record 1.51 MMT processed once all units were online.

• Operational challenges and regulatory provisions led to a PAT loss of INR 272 crores, considered transient.

• Board approved unaudited financial results for Q1 FY26 and appointed a new cost auditor for FY 2025-26.

• Amendment to the Object Clause of the Memorandum of Association was recommended for shareholder approval.

• All major units are now operational, positioning the refinery for higher throughput and improved performance in upcoming quarters.

Financial highlights

• Standalone revenue from operations for Q1 FY26 was INR 20,988.03 crores, reflecting lower throughput and a 20% YoY drop in benchmark crude prices, with an 8% sequential decline.

• Standalone net loss for Q1 FY26 was INR 271.97 crores, compared to a net profit of INR 65.57 crores in Q1 FY25.

• Gross refining margin (GRM) averaged $3.88/bbl, down from $4.70/bbl YoY and $6.23/bbl QoQ.

• EBITDA stood at INR 218 crores; depreciation and finance costs were INR 363 crores and INR 255 crores, respectively.

• Operating expenses were INR 601 crores, slightly lower QoQ due to the shutdown.

Outlook and guidance

• Throughput for Q2 is expected above 4.3 MMT, with GRMs projected in the high single digits, supported by stronger middle distillate cracks.

• If crude prices remain stable, financial performance is expected to rebound in the coming quarters.

• Annual CAPEX is projected at around INR 1,000 crores, including shutdown expenses.

• Management assessed the impact of global geopolitical events and found no significant effect on asset carrying values.