M R P L — Q3 FY26 earnings call

Call held 19 Jan 2026

Management summary

MRPL delivered a strong Q3 FY26 with EBITDA of ₹2,824 crores, a 165.4% YoY increase, driven by robust market conditions and operational efficiencies, including a best-ever MBN of 67. The company is actively expanding its retail network, targeting 250 outlets by fiscal year-end, and investing in strategic projects like a Bio-ATF plant. Debt has been reduced to ₹9,290 crores, and management is focused on sustained performance and addressing valuation concerns related to its limited public float.

Highlights

  • EBITDA of ₹2,824 crores in Q3 FY26, significantly up from ₹1,064 crore in Q3 last year, driven by healthy market prices and optimum energy consumption.

  • Achieved best-ever MBN (energy efficiency measure) of 67, indicating high energy efficiency for its capacity and complexity.

  • Fuel and loss stood at 10.06% for the quarter, noted as one of the best performances.

  • Current debt reduced to ₹9,290 crores, with a healthy debt-equity ratio of 0.63, with plans for further reduction.

  • Retail network expanded to 200 outlets, targeting 250 by fiscal year-end and 1,000 in five years, marking a strategic growth area.

Concerns

  • Freight rates, though moderated from their peak, remain higher than Q1 levels, impacting import costs.

  • Valuation of PSU OMCs, including MRPL, is a common concern due to perceived government control over pricing and taxation.

  • Limited public float (approximately 12%, with 1% locked) is identified as an issue impacting market capitalization.

  • Potential foreign exchange loss if ECB is paid off early, due to current market volatility.

Key financials

2 periods

Headline

  • EBITDA
    ₹2,824 Cr
    YoY +165.4%
  • Debt
    ₹9,290 Cr
  • Debt Equity Ratio
    0.63
  • MBN
    67
  • Fuel and Loss
    10.1%
  • NCDs
    ₹3,260 Cr
  • ECB
    ₹4,500 Cr

Q3 last year

  • EBITDA
    ₹1,064 Cr

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.

Capital allocation

high confidence
  • Capex ₹1,500 Cr
    • Growth projects (retail outlets, other projects, grid power import) ₹400 Cr
    • Maintenance ₹1,050 Cr
    overall CAPEX on an annual basis is in the range of about 1,500 crores... in 1500 crores around 400 to 450 crores will be towards the growth part of it so retail outlets and other projects or grid power import and all those things. The rest you can take towards maintenance, okay?
  • Debt Gross ₹9,290 Cr Maturity: NCDs not due till 2028; ECB has some volatility.
    current debt stands at Rs. 9,290 crores and debt equity stands at 0.63... NCDs are not due till 28. So, whatever has been paid in December, after that, the next due date is, 28. So, it's almost, 4,500 crores is locked till 28. So the next big item is the ECBs. And ECB is right now, there's some volatility

Guidance & targets

Operational Efficiency

  • Fuel and Loss percentage Operational Efficiency · next fiscal year · High confidence 9.5-10%
    fuel and loss will also be taken care within the next fiscal year with grid power project, which will bring it under 10, closer to 9.5, but it will be somewhere between 9.5 and 10.

    — Devendra Kumar

Retail Expansion

  • Number of Retail Outlets Retail Expansion · this fiscal year · High confidence 250
    we have achieved 200 mark, and should be able to complete around 250 Outlets within this fiscal year itself.

    — Devendra Kumar

  • Number of Retail Outlets Retail Expansion · 3 years' time · High confidence 500
    in 3 years' time we are planning about 500 outlets.

    — Devendra Kumar

  • Number of Retail Outlets Retail Expansion · 5 years' time · High confidence 1,000
    in 5 years' time about 1,000 and that is where the expansion is supposed to reach a very crucial tipping point

    — Devendra Kumar

New Projects

  • Bio-ATF Plant Cost New Projects · High confidence 364 crores
    We are also the first Indian refinery that is establishing a Bio-ATF plant at a cost of Rs. 364 crores.

    — Devendra Kumar

  • Bio-ATF Blended Supply New Projects · starting from 2027 · High confidence 1%
    And we'll be able to supply blended ATF across the globe, starting from 2027. 2027 is that 1% blended ATF.

    — Devendra Kumar

Capex

  • Annual CAPEX Capex · annual basis · High confidence 1,500 crores
    overall CAPEX on an annual basis is in the range of about 1,500 crores.

    — Devendra Kumar

Crude Sourcing

  • Heavier Crude Processing Percentage Crude Sourcing · 9 months · High confidence 70-72%
    Currently for the 9 months, I can mention that it is around 70-72%.

    — Avin Gupta

Retail Sales Volume

  • Retail Outlet Sales Volume Retail Sales Volume · per month per outlet · High confidence 120 KL
    And additionally the retail outlet sale is around 120KL per month per outlet.

    — Avin Gupta

What to watch in Q4 FY26

Fuel and Loss percentage

next fiscal year
Current 10.06%
Target 9.5-10%

Why it matters

This is a key operational efficiency metric that directly impacts the company's profitability.

fuel and loss will also be taken care within the next fiscal year with grid power project, which will bring it under 10, closer to 9.5, but it will be somewhere between 9.5 and 10.

Risks & concerns

  • Geopolitical uncertainties and sanctions

    high

    Uncertainties in the market due to sanctions could impact crude sourcing, though management states no current impact on exports.

    Analyst acknowledged

  • Valuation of PSU OMCs

    high

    Valuation is impacted by government control over pricing and taxation, a common issue for PSU OMCs.

    Analyst acknowledged

  • Freight rate volatility

    medium

    Freight rates, while moderated, are still higher than Q1 levels, posing a cost challenge.

    Analyst acknowledged

  • Limited public float

    medium

    88% ownership by ONGC and HPCL limits public float, potentially affecting market capitalization and liquidity.

    Management acknowledged

  • Foreign exchange loss on early ECB repayment

    medium

    Paying off ECB early could result in foreign exchange losses due to market volatility.

    Management acknowledged

  • GRM sustainability

    medium

    High GRMs seen in Q3 may not be sustainable, indicating potential for moderation.

    Management acknowledged

Q&A highlights

6 direct
Russian Crude Sourcing and Sanctions Impact Direct
We are in strict compliance with all sanctions in place and currently there are no Russian crude which is being imported and we will continue to comply with any of these international sanctions regime or government guidelines. So in near future we do not expect anything to stop our export of finished products.

Clarifies the company's stance on geopolitical sanctions and their minimal impact on current operations and exports.

Asked by Dhaval Popat

Freight Rates and Energy Integration Efforts Partial
freight rates have gradually come down to the normal levels. They're still higher than the averages but it has come down significantly from its peak... grid power project, which will bring it under 10, closer to 9.5, but it will be somewhere between 9.5 and 10.

Addresses concerns about input costs (freight) and outlines a key initiative (grid power project) to improve operational efficiency and reduce fuel & loss.

Asked by Dhaval Popat

GRM Disclosure and Crude Sourcing Impact on Margins Partial
GRM computations and depictions and publications are not standardized by the different companies or in any of the forums itself. So we had discontinued publishing that... loss of Russian barrels is not going to make a significant kind of an impact whereas on the finished product side you have seen the cracks going significantly up. So that more than offsets the loss on account of Russian Barrels.

Explains the discontinuation of GRM reporting and clarifies how the impact of losing Russian crude was offset by favorable finished product cracks.

Asked by Mayank M

Retail Expansion Investment and Future Revenue Contribution Direct
typically the depots could be in the range of 50 to 100 crores annually depending on the capacities. The pipeline would be in the range of 200 odd crores. So major planned is in Mumbai, Vizag... Right now the percentage it is not going to be very significant... It is approximately 2%, 1.5% I believe... we are targeting retail as a major revenue earner in future.

Provides specific investment figures for retail infrastructure and outlines the strategic importance of retail as a future revenue driver, despite its current small contribution.

Asked by Nilesh Ghuge

Marketing Strategy for Other Products (beyond MS/Diesel) Direct
the next apart from MS and Diesel the next is the ATF. ATF we are very well placed and technically as I mentioned we would be one of the first to be compliant with that CORSIA Standards, and based on our tie-up with Shell, affiliate company, we expect this particular business to keep growing and we expect this market share to be completely with us.

Highlights the company's focus on ATF as a key product for diversification and growth, leveraging compliance and partnerships.

Asked by Nilesh Ghuge

Refinery Replacement Cost Benchmark Direct
if you take the latest Barmer as the latest addition, it is almost like 8,000 crore per MMT. It could be higher if you are planning a more complex sourcing and more complex processing but 8,000 crore per million ton. That is like a benchmark.

Provides a useful benchmark for understanding the capital intensity and valuation of refinery assets.

Asked by Kaushal Kedia

Crude Throughput Reporting Discrepancy Direct
the 4.56 that you mentioned was the gross crude, the 4.7 Million Metric Ton that we reported in our financials that was the net crude percentage. So our revenue and the rest of the things and the bottom line is driven by the net crude that is why we focus on net crude and not the gross crude.

Clarifies a potential confusion in reported throughput figures, ensuring investors understand the basis for financial reporting.

Asked by Swarnendu Bhushan

Venezuelan Oil Sourcing Consideration Direct
Yes so we are actively looking at it. We've not decided, but we are looking at it. Moreover, it depends on the commercial terms. Because freights are expected to be on the higher side when you get, when the rate is also, that is, low API crude. So, we will look at the total terms and conditions and the commercials.

Indicates the company's proactive approach to exploring new crude sourcing options, while emphasizing commercial prudence.

Asked by Swarnendu Bhushan

2 min read 6 chapters

Detailed narrative

Robust Q3 Performance and Operational Excellence

MRPL reported a strong Q3 FY26, with EBITDA soaring to ₹2,824 crores, a significant increase from ₹1,064 crores in the prior year's Q3. This performance was attributed to healthy market prices, optimal energy consumption, and high throughput. The company achieved its best-ever MBN (energy efficiency measure) of 67 and maintained a low fuel and loss percentage at 10.06% for the quarter, reflecting strong operational efficiency.

Strategic Retail Network Expansion

The company is aggressively expanding its retail footprint, having already established 200 outlets and targeting 250 by the end of the current fiscal year. Long-term plans include reaching 500 outlets within three years and 1,000 outlets within five years, aiming to make retail a major revenue contributor. This expansion involves significant investment in secondary capacities like depots (₹50-100 crores annually) and pipelines (₹200 crores), with total infrastructure investment estimated around ₹500 crores.

Crude Sourcing and Freight Rate Management

MRPL maintains strict compliance with international sanctions and currently does not import Russian crude, expecting no impact on finished product exports. Approximately 40% of its crude sourcing is committed to Middle East crudes. While freight rates had spiked in Q3, they have since moderated, though remaining above Q1 levels. The refinery's complex nature allows it to process heavier crudes, with 70-72% of crude processed in the first nine months being heavier, based on economic viability.

Capital Expenditure and Debt Reduction

The cumulative capex for the first three quarters of FY26 was ₹887 crores, with an annual target of approximately ₹1,500 crores. This capex is split between maintenance and growth projects, with ₹400-450 crores allocated to growth initiatives like retail outlets and grid power import. The company successfully reduced its debt to ₹9,290 crores, achieving a debt-equity ratio of 0.63. NCDs of ₹3,260 crores are not due until 2028, and ECB of $500 million (approx. ₹4,500 crores) is being managed, considering forex volatility.

Pioneering New Green Energy Projects

MRPL is at the forefront of green energy initiatives, establishing India's first Bio-ATF plant at a cost of ₹364 crores. This plant aims to comply with CORSIA Norms and will supply 1% blended ATF globally starting from 2027. Additionally, the company is developing an Isobutyl Benzene (IBB) pilot plant, a base for pharmaceuticals, with commercialization anticipated in a few years following technical and licensing approvals.

Addressing Valuation and Float Concerns

Management acknowledged that the valuation of PSU OMCs, including MRPL, is a common concern, partly due to government influence on pricing and taxation. A specific issue for MRPL is its limited public float, with approximately 88% of shares held by ONGC and HPCL, and only about 1% of the 12% public float being actively traded. The company is actively examining this float issue with its parent companies to potentially improve market capitalization.

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