Mangalore Refinery & Petrochemicals (MRPL IN) – Q3FY26 Result Update – Strong quarter on strong cracks – ACCUMULATE
Published on 19 Jan 2026
Mangalore Refinery & Petrochemicals (MRPL) reported exceptional results this quarter with an EBITDA of Rs27.8bn in Q3FY26, building on Rs14.9bn in Q2FY26 (PLe: Rs18.5bn, cons est EBITDA: Rs21.1bn) driven by stronger fuel cracks and higher utilization. PAT improved to Rs14.5 this quarter (PLe: Rs8.1bn, cons est: Rs10.5bn) vs Rs6.4bn in Q2FY26 and Rs3.0bn in Q3FY25. Throughput improved 6.1/2.2% QoQ/YoY to 4.7mmt (Ple: 4.4mmt). However, crack spreads have moderated currently to Q2FY26 levels. MRPL plans to raise its marketing presence, targeting expansion of retail outlets to 1,000 over the next five years. We build in a GRM of USD7.6/7.5/bbl for FY27/28E. The stock is currently trading at 6.5/5.9x FY27/28E EV/EBITDA. We reiterate our rating of ‘ACCUMULATE’ on the stock with a revised TP of Rs162 (previous Rs168) at 6.0x DecFY27 EV/EBITDA. We lower the option value of its chemicals foray to Rs22 from Rs45, as the plan remains a few years away from commercialization.
