MRPL Reports Significant Q1 Loss Amidst Falling Revenues

Mangalore Refinery and Petrochemicals Ltd (MRPL), a key subsidiary of ONGC and a Schedule 'A' Mini Ratna Category-I company, has reported a consolidated net loss of Rs 272 crore for the first quarter of FY26. This marks a stark reversal from the Rs 66 crore profit recorded in the same period last year.

Understanding the Financial Downturn

The company's recent board meeting highlighted a significant drop in revenue from operations, which fell to Rs 20,988 crore from Rs 27,289 crore in Q1FY25. Additionally, Gross Refining Margin (GRM) decreased to $3.88 per barrel from $4.70 per barrel year-on-year, further exacerbating the financial strain.

Operational Challenges and Milestones

Despite a reduction in refinery throughput to 3.52 million metric tonnes from 4.35 MMT in the previous year, MRPL achieved a notable milestone in April 2025 by processing 1,512 TMT of crude oil, setting a new record for the month.

Looking Ahead

The company remains optimistic about recovery in the upcoming quarters, buoyed by the resumption of operations and anticipated improvements in refining margins. The completion of scheduled maintenance and shutdown of major units in its phase-2 complex during the quarter is expected to play a pivotal role in this rebound.