Mangalore Refinery and Petrochemicals Limited (MRPL) delivered exceptional financial results for Q2 FY27, with profit after tax (PAT) surging 106% quarter-on-quarter to ₹1,881 crore compared to ₹914 crore in the previous quarter. According to the latest company disclosure, the ONGC subsidiary also reported revenue growth of 38.6% YoY to ₹35,590 crore, up from ₹25,953 crore in Q2 FY26. The strong performance reflects significant improvement in the company's bottom line and operational efficiency, with share of exports contributing ₹6,327 crore during the quarter. As per Prabhudas Lilladher's latest research report, MRPL's Q2FY27 EBITDA beat estimates at ₹32.8 billion versus ₹23.3 billion estimated, driven by lower QoQ crude procurement costs and elevated refining cracks.
MRPL's operational performance showed remarkable improvement across key metrics during the July-September quarter. As reported by the company's latest disclosure, total throughput stood at 4.18 million tonnes during Q2 FY27, compared with 4.43 million tonnes in the year-ago period. The company's EBITDA increased 120.4% YoY to ₹3,277 crore from ₹1,487 crore in the previous period. The company's EBITDA margin expanded significantly by 351 basis points YoY to 10.08% in Q2 FY27, compared with 6.57% in the corresponding period last year, demonstrating enhanced operational efficiency and cost management capabilities. According to Prabhudas Lilladher, implied GRM stood at USD 14.8/bbl versus USD 8.3/bbl in Q1FY27 and USD 9.1/bbl in Q2FY26, with adj. PAT improving to ₹19.7 billion from ₹5.6 billion in Q1FY27 after excluding the fire incident impact.
The Board of Directors declared the first interim dividend of ₹3 per equity share (30%) for FY26-27, as reported by the company's latest disclosure. The record date for determining shareholder eligibility has been fixed as October 21, 2026, with dividend payment scheduled on or before November 4, 2026. This dividend declaration reflects the company's strong financial position and commitment to returning value to shareholders. As per the company's exchange filing, the dividend represents 30% of the face value of ₹10 per share, meaning an investor holding 100 MRPL shares would be eligible to receive ₹300 as an interim dividend. MRPL is part of the Nifty Smallcap 100 index and has a market capitalisation of ₹30,025.52 crore with a face value of ₹10 per share.
MRPL achieved a significant milestone by receiving its first-ever international credit rating from Fitch Ratings, securing a 'BBB-' rating with a stable outlook, in line with India's sovereign rating. During the quarter, the company finalised agreements for hiring storage tanks for aviation turbine fuel (ATF) in Goa and motor spirit and high-speed diesel (MS/HSD) in Kochi. It also began product loading operations at the Aegis Terminal in Mangaluru, the Hindupur depot in Andhra Pradesh, and the Ennore terminal in Tamil Nadu. For the first half of FY27, MRPL's standalone net profit surged to ₹2,796 crore from ₹367 crore in the year-ago period, with revenue from operations climbing to ₹77,199 crore from ₹46,942 crore.
Despite reporting strong Q2 results, MRPL shares have delivered exceptional returns of 229.98% over the past five years, establishing it as a multibagger stock. The stock has gained 19.50% on a one-year basis with a year-to-date return of 11.80%, while advancing 3.30% over the past month. However, the stock has declined 0.31% over the past week. Despite the strong dividend announcement, MRPL shares fell over 7% despite the robust financial performance, with the stock currently trading at ₹173.55, thereby trimming its year-to-date advance to 12%. Prabhudas Lilladher has maintained a 'HOLD' rating on MRPL while revising the target price to ₹180 from ₹165, based on 6.0x FY28E EV/EBITDA. The brokerage continues to assign an option value of ₹23 per share to the chemicals project, which remains several years away from commercialization.
