MRPL profit drops 68% as a 90.51% tax rate overwhelms operating gains
Q4 operating margin was 7.45%, down 3.82 percentage points sequentially and 7.14 points below the Energy peer median.
Filed 24 Apr 2026, 20:19 IST · after market close · Mangalore Refinery And Petrochemicals Ltd (MRPL)
Key takeaways
- Consolidated net profit fell 68.43% year on year to Rs 116.99 cr despite pre-tax profit rising 108.34%.
- Operating margin improved 2.86 percentage points year on year but fell 3.82 percentage points sequentially as expenses rose 1.09% while revenue declined 3.08%.
- The stock fell 7.66% after the results, a larger move than its 4.48% median absolute reaction across the last eight results.
Price around the results
Higher pre-tax profit did not translate into net earnings
MRPL's consolidated pre-tax profit more than doubled year on year, helped by a 13.67% decline in interest expense and a 2.86 percentage-point improvement in operating margin. Net profit nevertheless fell 68.43% because the tax rate rose 53.13 percentage points to 90.51%. Other income contributed 4.61% of pre-tax profit, so it was not the main explanation for the earnings gap.
Q4 margin reversed sharply after the Q3 peak
Sequentially, revenue declined 3.08% while expenses increased 1.09%, causing operating margin to narrow 3.82 percentage points. The 7.45% margin was still 2.86 percentage points above Q4FY25, but below the 11.27% recorded in Q3FY26. The quarter breaks the improvement seen from 1.03% in Q1FY26 to 6.57% in Q2FY26 and 11.27% in Q3FY26.
MRPL lagged Energy peers and drew an unusually weak reaction
Among 15 Energy companies that had reported, MRPL's 7.45% operating margin was 7.14 percentage points below the sector median of 14.59%, placing it third from the bottom. After the results were filed after market close, the stock fell 7.66% on the reaction day and was down 16.44% after five sessions. This was weaker than its typical reaction: six of its last eight results were followed by declines, with a median absolute move of 4.48%.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹23,950 cr | ₹24,712 cr | -3.08% | -2.63% |
| Other income | ₹57 cr | ₹45 cr | +26.09% | +25.54% |
| Expenses | ₹22,167 cr | ₹21,927 cr | +1.09% | -5.54% |
| Operating profit | ₹1,783 cr | ₹2,785 cr | -35.97% | +57.80% |
| Operating margin (%) | 7.45% | 11.27% | — | — |
| Interest | ₹212 cr | ₹219 cr | -3.24% | -13.67% |
| Depreciation | ₹395 cr | ₹391 cr | +1.09% | +16.86% |
| Profit before tax | ₹1,233 cr | ₹2,220 cr | -44.45% | +108.34% |
| Tax | ₹1,116 cr | ₹769 cr | +45.12% | +404.49% |
| Net profit | ₹117 cr | ₹1,451 cr | -91.94% | -68.43% |
| EPS (₹) | ₹0.67 | ₹8.28 | -91.91% | -68.25% |
Operating margin of 7.45% compares with a Energy sector median of 14.59% across 15 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -7.66% | -8.48% |
| Next session | -6.79% | — |
| 5 sessions | -16.44% | -17.00% |
| 15 sessions | -21.90% | — |
| 30 sessions | -12.21% | — |
Volume on the results session was 1.81× its 20-day average.
What to watch
- Whether operating margin recovers from 7.45% after the 3.82 percentage-point sequential decline.
- Whether the tax rate moves down from 90.51% after the 53.13 percentage-point year-on-year increase.
- Whether MRPL narrows its 7.14 percentage-point operating-margin gap to the Energy peer median of 14.59%.