MRPL margin rebounds as expenses fall faster than revenue
Net profit rose 202.98% year on year, although the lower tax rate aided the increase.
Filed 14 Oct 2026, 20:35 IST · after market close · Mangalore Refinery And Petrochemicals Ltd (MRPL)
Key takeaways
- Consolidated operating margin rebounded 6.64 percentage points sequentially as expenses fell 20.84%, faster than the 15.00% decline in revenue.
- Net profit rose 202.98% year on year, helped by a 9.75-percentage-point fall in the tax rate.
- Other income was negative at Rs 49.38 cr, equal to -1.95% of pre-tax profit, so it did not support earnings.
Price around the results
Sequential margin recovery despite lower revenue
MRPL's consolidated revenue fell 15.00% sequentially to Rs 32,516.24 cr, but expenses declined 20.84% to Rs 29,237.32 cr. That cost reduction lifted operating profit 148.85% and widened operating margin by 6.64 percentage points to 10.08%. Interest expense still rose 16.18% sequentially, limiting the conversion of operating gains into pre-tax profit.
Year-on-year growth came with tax support
Revenue grew 43.57% year on year while expenses increased 38.17%, expanding operating margin by 3.51 percentage points. Operating profit consequently rose 120.27%, while interest expense increased 29.48%. The tax rate fell 9.75 percentage points to 25.13%, which aided the 202.98% increase in net profit.
Margin trend turns up after two weaker quarters
Operating margin had declined from 11.27% in Q3FY26 to 7.45% in Q4FY26 and 3.44% in Q1FY27; Q2FY27 reversed that direction with a 10.08% margin. The latest margin remains below the Q3FY26 level, so the quarter marks a recovery rather than a new peak. Other income of negative Rs 49.38 cr, or -1.95% of pre-tax profit, provided no earnings support.
No immediate market reaction after the filing
The consolidated results were filed after market close, so there is no reported stock reaction yet. Across the last eight results, MRPL shares rose three times and fell five times, with a median absolute move of 4.48%, indicating a mixed and typically material response history.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹32,516 cr | ₹38,254 cr | -15.00% | +43.57% |
| Other income | ₹-49 cr | ₹574 cr | — | — |
| Expenses | ₹29,237 cr | ₹36,937 cr | -20.84% | +38.17% |
| Operating profit | ₹3,279 cr | ₹1,318 cr | +148.85% | +120.27% |
| Operating margin (%) | 10.08% | 3.44% | — | — |
| Interest | ₹284 cr | ₹244 cr | +16.18% | +29.48% |
| Depreciation | ₹407 cr | ₹401 cr | +1.43% | +9.68% |
| Profit before tax | ₹2,539 cr | ₹1,246 cr | +103.81% | +163.54% |
| Tax | ₹638 cr | ₹300 cr | +112.69% | +89.90% |
| Net profit | ₹1,901 cr | ₹946 cr | +100.99% | +202.98% |
| EPS (₹) | ₹10.85 | ₹5.40 | +100.93% | +203.07% |
What to watch
- Whether operating margin holds above 10.08% after the sequential recovery.
- Whether expenses continue to grow more slowly than revenue after the 20.84% sequential decline.
- Whether the tax rate remains near 25.13% rather than returning to the 34.88% reported in Q2FY26.