M R P L — Q2 FY26 earnings call

Call held 16 Oct 2025

Management summary

MRPL delivered a strong operational recovery in Q2 FY26 following a planned turnaround in the previous quarter, with crude throughput returning to normal levels of 4.4 MMT. Profitability saw a significant sequential rebound driven by improved product cracks and higher volumes. Management is aggressively pushing its retail expansion and energy transition projects, including a Sustainable Aviation Fuel (SAF) plant targeted for 2027.

Highlights

  • Revenue from operations stood at ₹25,953 crores for Q2 FY26.

  • Reported EBITDA of ₹1,565 crores and PAT of ₹639 crores, showing a substantial jump over Q1 FY26.

  • Crude throughput increased to 4.4 MMT, up from 3.5 MMT in the previous quarter following a successful turnaround.

  • Fuel and loss reported at 10.42%, slightly above the 10% target due to post-turnaround stabilization.

  • Retail network expanded to 185 outlets, with a target to reach 250 by the end of the fiscal year.

  • Russian crude continues to account for 30-40% of the total crude basket.

  • Export sales accounted for approximately 40% of total turnover.

Concerns

  • Geopolitical Pressure on Russian Crude

Key financials

  1. Revenue ₹25,953 Cr
  2. EBITDA ₹1,565 Cr
  3. PAT ₹639 Cr
  4. Crude Throughput 4.4 MMT +25.7%QoQ
  5. Fuel and Loss 10.4%

What they filed

Q1 FY27: revenue up 120.4%, net profit up 436.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue24,968 21,871 24,596 17,356 22,649 −9%24,712 +13%23,950 −3%38,254 +120%
EBITDA-474 1,031 1,130 180 1,489 +414%2,785 +170%1,783 +58%1,318 +632%
Net profit-682 304 363 -272 639 +194%1,445 +375%119 −67%915 +436%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Refining & Petrochemicals (Integrated)
    29.8% Light Distillates Yield53.6% Middle Distillates Yield40% Export Share of Turnover

Guidance & targets

Capacity

  • Crude Throughput Capacity · Q3 FY26 · High confidence 4.43 MMT
    We expect Q3 also to be above 4.43 MMT of crude processing.

    — Shyamprasad Kamath, MD and CEO

Market Share

  • Retail Outlets Market Share · FY26 · High confidence 250
    By the end of this year, we target to cross 250, that is the number.

    — Shyamprasad Kamath, MD and CEO

  • Annual Retail Outlet Addition Market Share · Year-on-Year · Medium confidence 100-130
    And we also plan to add at least another minimum of around 100 to 130 retail outlets on a year-on-year basis from there.

    — Shyamprasad Kamath, MD and CEO

Capex

  • Annual Capex Capex · FY26 · High confidence ₹1,500 crores
    CAPEX plan is in the range of typically 1500 crores, that is the normal.

    — Devendra Kumar, Director of Finance

Other

  • Sustainable Aviation Fuel (SAF) Production Other · by January 2027 · High confidence 20 kilolitres per day
    It is based on an indigenous technology with a production rate of around a target of 20 kilolitres per day... we will be ready by the date of, say, January 2027 to meet those targets.

    — Shyamprasad Kamath, MD and CEO

Margin

  • Fuel and Loss Target Margin · Rest of FY26 · Medium confidence 10%

    Previously 10.42% → 10%

    But going forward, we expect this to be normal and the target could be around 10% for the rest of the fiscal year.

    — Shyamprasad Kamath, MD and CEO

Risks & concerns

  • Geopolitical Pressure on Russian Crude

    high

    Analysts raised concerns about US pressure to stop sourcing Russian oil; management remains confident in current sourcing strategy.

    Analyst downplayed

  • Foreign Exchange Volatility

    medium

    Reported a ₹355 crore forex loss, primarily due to MTM revaluation of outstanding ECB loans.

    Management acknowledged

  • Operational Hiccups Post-Turnaround

    low

    Fuel and loss was slightly elevated at 10.42% due to initial hiccups after the Q1 plant turnaround.

    Management acknowledged

Areas of evasion (2)

  • Specific dollar-value GRM figures
  • Exact discount amounts on specific crude grades

Q&A highlights

2 direct
Russian Crude Sourcing Risks Direct
Regarding the Russian barrels, we still believe that government... has been maintaining that what is the lowest cost of energy sourcing that will continue for us.

Confirms MRPL's continued reliance on discounted Russian crude (30-40% of basket) despite geopolitical pressure.

Asked by Achal Shah

Discontinuation of GRM Reporting Partial
Following the industry practice and peer companies, we have discontinued reporting GRM in a published kind of way... roughly, I'd say it is double of the previous.

Management is reducing transparency on a key sector metric (GRM), making it harder for analysts to track underlying refining efficiency.

Asked by Achal Shah

Retail Outlet Economics Direct
Typically, we have been seeing an average sale of about 140 to 160 KL per RO per month. And this is very much in comparison with what other public sector OMCs also achieve.

Provides concrete unit economics for the retail expansion, showing MRPL is achieving parity with established OMCs.

Asked by Achal Shah

1 min read 5 chapters

Detailed narrative

Operational Rebound Post-Turnaround

MRPL successfully ramped up operations in Q2 FY26 following a major maintenance turnaround in Q1. Crude throughput jumped from 3.5 MMT to 4.4 MMT, reflecting full capacity utilization. While fuel and loss was slightly high at 10.42% due to restart stabilization, management expects this to normalize to 10% for the remainder of the fiscal year.

Aggressive Retail Expansion Strategy

The company is pivoting toward a stronger domestic marketing presence to capture higher margins. With 185 outlets currently operational, MRPL aims to reach 250 by year-end and add 100-130 outlets annually thereafter. Current average sales of 140-160 KL per month per outlet are in line with major public sector OMCs, validating their 'middle path' penetration model.

Crude Sourcing and Geopolitical Dynamics

Russian crude remains a vital component of MRPL's basket, comprising 30-40% of sourcing. Despite international geopolitical pressure and US 'tweets' regarding Russian oil, management maintains that sourcing is done on a purely economic basis. They are also exploring other discounted crudes and noted that Kuwaiti crude sourcing has recently been 'slightly positive' compared to Russian barrels.

Energy Transition and Petrochemical Diversification

MRPL is advancing its green energy initiatives with a Sustainable Aviation Fuel (SAF) project targeted for completion by January 2027, aiming for 20 kilolitres per day. Additionally, the Isobutyl Benzene pilot project is nearing mechanical completion. The company is also reviewing a final report for a potential Phase 4 refinery expansion and further petrochemical diversification.

Financial Health and Debt Management

The company reported a healthy EBITDA of ₹1,565 crores, despite a ₹355 crore forex loss (mostly non-cash MTM on ECB loans). Management confirmed they are on track to repay an upcoming loan (SET table) at the end of the calendar year using internal accruals, with no plans for refinancing, signaling a commitment to deleveraging.

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