Mangalore Refinery Shares Plunge 8% Amid Weak Q4 Results and Downgrade
MRPL slides 8% after weak Q4; PL Capital cuts to 'Sell', sees 23% downside
Business Standard
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Mangalore Refinery and Petrochemicals (MRPL) shares fell nearly 8% following a significant 68% decline in net profit for Q4 FY26. PL Capital downgraded the stock to 'Sell', projecting a 23% downside, citing rising expenses and lower throughput as key factors affecting performance.
- 01MRPL's net profit dropped by 68.43% to ₹117 crore in Q4 FY26.
- 02The company's revenue from operations increased by 3.2% to ₹28,493 crore.
- 03PL Capital downgraded MRPL to 'Sell', cutting the target price from ₹192 to ₹143.
- 04Gross refining margins are projected at $7.7 and $7.4 per barrel for FY27 and FY28, respectively.
- 05MRPL plans to expand its retail network from 252 to 1,000 outlets over the next five years.
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Shares of Mangalore Refinery and Petrochemicals (MRPL) fell nearly 8% on April 27, 2026, trading at ₹173.53 after the company reported a staggering 68.43% decline in net profit for the March 2026 quarter, totaling ₹117 crore compared to ₹371 crore in the same period last year. Despite a 3.2% increase in revenue from operations, reaching ₹28,493 crore, the company faced challenges, including higher employee expenses and a forex loss of ₹6.1 billion. PL Capital downgraded MRPL's stock to 'Sell', reducing the target price from ₹192 to ₹143 due to rising debt levels and disappointing earnings before interest, tax, depreciation, and amortisation (Ebitda) of ₹1,783.1 crore. Analysts project gross refining margins at $7.7 and $7.4 per barrel for FY27 and FY28, respectively. MRPL aims to significantly expand its retail presence, targeting 1,000 outlets in five years, up from 252 currently.
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The decline in MRPL's stock and profit may affect investor confidence and could lead to tighter budgets for future expansions, impacting local employment and retail presence.
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