Why MRPL Share Price is Falling

Markets have recovered early morning losses and trading higher on Monday, 21 July. At the time of writing, the Nifty 50 index is trading higher by 84 points at around 25,055. The BSE Sensex has risen around 300 points to 82,086 levels.

The Nifty Bank index is notably strong, up 0.66%. It's led by gains in private sector banks such as HDFC Bank and ICICI Bank, which reported strong quarterly results.

However, one stock that is falling is MRPL. Let's tell you some reasons for the same.

#1 Company Reports Losses

Mangalore Refinery and Petrochemicals (MRPL) has reported a soft set of Q1 FY26 numbers. The company saw revenue from operations dropping to Rs 209.88 billion (bn) from Rs 272.89 bn year-on-year (YoY).

The company reported a consolidated net loss of Rs 2.72 bn, a significant reversal from a net profit of Rs 656 million (m) in the same quarter last year. This loss was driven by a decline in revenue and lower refining margins.

Refinery throughput also fell to 3.52 million metric tonnes (MMT) compared to 4.35 MMT a year ago, partly due to scheduled maintenance and shutdowns of major units in the phase-2 complex during the quarter.

#2 Gross Refining Margins Fall

The gross refining margin (GRM) of MRPL declined to US$ 3.88 per barrel from US$ 4.70 per barrel. GRM is a key profitability metric in the oil refining industry. It represents the difference between the total value of petroleum products produced by a refinery and the cost of the crude oil used as raw material, calculated on a per-barrel basis. Essentially, GRM measures how much profit a refinery makes from processing each barrel of crude oil before accounting for operating expenses.

The falling GRMs may have been another reason for the company to slip into losses and subsequent decline in its share price.

What Next?

MRPL's profitability is exposed to sharp movements in crude oil prices. Crude oil spreads are a function of many dynamic markets and fundamental factors.

These include global demand-supply dynamics and geopolitical stability in countries with oil reserves. In recent months we have seen a spike in crude oil prices due to tensions in the Middle East.

This can weigh on margins and profitability of oil refining companies like MPRL.

As MRPL imports bulk of its crude requirements, significant fluctuations in the currency can also have an adverse impact on margins.

MRPL has a strong parentage through ONGC.

According to a report by CARE Edge Ratings the company purchases 15-20% of its crude oil requirement from ONGC. The company has also extended guarantee to one of the company's foreign crude oil suppliers with respect to payments of its crude purchases.

This augurs well for MRPL in the future.

The key to the company's profitability would depend on crude prices, currency fluctuations, and government policies.

How Shares of MRPL have Performed Recently

Over the last one month, the share price of MRPL has fallen 3% from levels of Rs 145.65 to the current levels of Rs 140.4. In the past one year, shares of the company have lost 34%.

The stock hit a 52-week high of Rs 230.25 on 19 July 2024. The stock also hit a 52-week low of Rs 98.95 on 3 March 2025.

About MRPL

MRPL is Miniratna, Central Public Sector Enterprise under the Ministry of Petroleum & Natural Gas, and a subsidiary of ONGC.

It operates a 15 million metric tonnes per annum (MMTPA) refinery located in Mangalore, Karnataka. The company is known for its complex processing capability and high flexibility to handle various crude oils, including heavy and high API gravity crudes.

MRPL produces a range of petroleum products such as high-speed diesel, petrol, aviation turbine fuel, and has forward-integrated into petrochemicals following its merger with ONGC Mangalore Petrochemicals.

MRPL benefits from ONGC's majority ownership for financial support and is adapting to changing market dynamics with a growing focus on petrochemicals, sustainability, and operational efficiency.

To know more, check MRPL's fact sheet and latest quarterly results. You can also compare MRPL with its peers on our website.

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Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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