Shares of Mangalore Refinery and Petrochemicals Ltd (MRPL) plunged nearly 8% to ₹137.87 in early trade on Monday after the company reported disappointing Q1 FY26 results. The stock slipped by ₹11.34 from its previous close of ₹149.21, hitting a day’s low of ₹136.77.
The sharp decline came after MRPL swung to a net loss of ₹270.7 crore for the quarter ended June 30, 2025, compared to a net profit of ₹73.2 crore in the same period last year.
The company’s profitability was dented as its gross refining margin (GRM) fell further to $3.88 per barrel, down from $4.7 per barrel in the previous quarter. GRM, which indicates the profitability of refineries, was hit by weak demand and lower prices of crude oil and its derivatives.
Revenue also suffered, falling 25.3% YoY to ₹17,356.2 crore from ₹23,246.6 crore a year earlier. Meanwhile, EBITDA slumped by nearly 70% YoY to ₹179.5 crore from ₹587.7 crore, with EBITDA margin shrinking to just 1% versus 2.5% last year, signalling intense pressure on operating profitability amid challenging market conditions.
The weak financial performance and contracting margins have weighed heavily on investor sentiment, triggering the steep fall in the stock price today.
