Mangalore Refinery and Petrochemicals Ltd (MRPL) has implemented a comprehensive strategy to avoid dependence on any single source for crude oil supply. According to reports from The Hindu BusinessLine, Managing Director and CEO M Shyamprasad Kamath stated that the company sources crude from across the globe to meet refinery requirements, with no single geography, supplier or route being decisive for operations.
The company has significantly reduced its reliance on West Asian crude oil sources over recent years. As reported by The Hindu BusinessLine, MRPL's crude oil sourcing from West Asia decreased from approximately 66% in 2022-23 to around 27% during the first quarter of 2026-27. This substantial reduction demonstrates the company's successful diversification efforts, occurring against a backdrop of global energy supply disruptions.
MRPL has also diversified its Russian crude oil sources, with supplies from Russian barrels decreasing from 44% to around 27-28%. According to the company's management, this reduction is part of the deliberate diversification strategy to secure crude supply through multiple sourcing regions, suppliers, and shipping routes. The company's efforts align with India's broader energy security challenges, as the country has increased Russian oil purchases to record levels amid Middle East supply disruptions.
The company is actively utilizing artificial intelligence across its operations, implementing generative, discriminative and predictive AI technologies. As reported by The Hindu BusinessLine, MRPL has deployed AI-based applications in the refinery including real-time prediction of melt flow index and xylene solubility in the polypropylene unit, which helps address lab analysis delays affecting grade transitions. In the captive power plant, the company has implemented a real-time optimiser that manages dynamic power and steam demand, resulting in significant oil savings.
According to latest market analysis, MRPL is currently trading at ₹173.84 and is significantly below its estimated future cash flow value of ₹333.32, representing a discount of more than 20%. The company's forward PE ratio stands at 9.7x with an estimated growth rate of 52.05%. When compared to industry peers, MRPL trades at a competitive valuation with Hindustan Petroleum at 47.4x and Chennai Petroleum at 5x forward PE ratios. The stock is covered by 10 analysts with 2 analysts providing revenue and earnings estimates for the company.
