MRPL shares jump 10.07% despite quarterly margin squeeze
Consolidated operating margin fell 4.01 percentage points QoQ as expenses grew faster than revenue, while other income supplied 46.04% of pre-tax profit.
Filed 15 Jul 2026, 19:28 IST · after market close · Mangalore Refinery And Petrochemicals Ltd (MRPL)
Key takeaways
- MRPL's consolidated operating margin fell 4.01 percentage points QoQ to 3.44% as expenses rose 66.63%, faster than revenue's 59.73% growth.
- Net profit rose 708.34% QoQ to Rs 945.68 cr, but other income accounted for 46.04% of pre-tax profit and the tax rate fell 66.43 percentage points.
- The stock gained 10.07% in the initial post-results session, versus a 4.48% median absolute move after its last eight results.
Price around the results
Revenue rebound did not carry through to margin
On a consolidated basis, Q1FY27 revenue grew 120.41% YoY and operating profit rose 633.68%, lifting operating margin 2.41 percentage points from Q1FY26. Sequentially, however, revenue increased 59.73% while operating profit fell 26.10%. Expenses grew 66.63% QoQ, so the margin narrowed from 7.45% to 3.44%.
Other income and tax relief supported reported profit
Other income contributed 46.04% of pre-tax profit, making the earnings increase less dependent on operating performance. The QoQ tax-rate decline of 66.43 percentage points, from 90.51% to 24.08%, also supported net profit. Interest expense rose 15.31% QoQ, while depreciation increased 1.58%.
Margin is below the Energy peer median after two declines
MRPL's 3.44% operating margin was 2.24 percentage points below the 5.68% median for seven Energy peers that had reported the quarter. It ranked third from the bottom. The margin has now declined for two consecutive quarters, from 11.27% in Q3FY26 to 7.45% in Q4FY26 and 3.44% in Q1FY27.
Initial stock reaction was unusual for MRPL
The stock rose 10.07% in the initial session after the results, with the gain reaching 10.81% on the next session and 11.74% after five sessions. That move was well above the 4.48% median absolute reaction across the last eight results. The historical pattern had been mostly negative, with six down moves and two up moves; initial-session volume was 29.58 times its reference level.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹38,254 cr | ₹23,950 cr | +59.73% | +120.41% |
| Other income | ₹574 cr | ₹57 cr | +909.17% | +1357.83% |
| Expenses | ₹36,937 cr | ₹22,167 cr | +66.63% | +115.04% |
| Operating profit | ₹1,318 cr | ₹1,783 cr | -26.10% | +633.68% |
| Operating margin (%) | 3.44% | 7.45% | — | — |
| Interest | ₹244 cr | ₹212 cr | +15.31% | -5.00% |
| Depreciation | ₹401 cr | ₹395 cr | +1.58% | +10.40% |
| Profit before tax | ₹1,246 cr | ₹1,233 cr | +1.02% | — |
| Tax | ₹300 cr | ₹1,116 cr | -73.12% | — |
| Net profit | ₹946 cr | ₹117 cr | +708.34% | — |
| EPS (₹) | ₹5.40 | ₹0.67 | +705.97% | — |
Operating margin of 3.44% compares with a Energy sector median of 5.68% across 7 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +10.07% | +10.10% |
| Next session | +10.81% | — |
| 5 sessions | +11.74% | +12.60% |
Volume on the results session was 29.58× its 20-day average.
What to watch
- Whether operating margin recovers from 3.44% after two consecutive quarterly declines.
- Whether expenses continue to grow faster than revenue after the QoQ gap of 66.63% versus 59.73%.
- Whether other income's 46.04% share of pre-tax profit and the 24.08% tax rate persist.