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, but April set a record with 1.51 MMT processed once all units were online.

• Operational challenges led to a PAT loss of INR 272 crores, mainly from shutdowns and inventory losses, both considered transient.

• Board approved standalone and consolidated unaudited financial results for the quarter ended June 30, 2025, and appointed a new cost auditor for FY 2025-26.

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

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

Financial highlights

• Standalone revenue from operations for Q1 FY26 was ₹20,988.03 crore, down from ₹27,289.40 crore in Q1 FY25, reflecting lower throughput and a 20% YoY drop in benchmark crude prices.

• Standalone net loss for Q1 FY26 was ₹271.97 crore, compared to a net profit of ₹65.57 crore 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 was INR 363 crores and finance costs INR 255 crores.

• Retail segment contributed INR 60 crores in margin from 68,000 KL sales volume for the quarter.

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 and internal initiatives.

• Retail outlet expansion targets 100 new stations in FY26, aiming for 300 total, with retail sales volume targeted at 300–325 TKL this year and 500 TKL by FY27.

• Annual CAPEX is expected to be around INR 1,000 crores, including shutdown expenses.

• Management assessed the impact of global geopolitical events (US tariffs, Russia-Ukraine, Israel-Iran wars) and found no significant effect on asset carrying values.