MRPL shares fall 5% after firm stops Russian oil imports

MRPL shares fall 5% after firm stops Russian oil imports

• MRPL halts Russian oil imports, eyes Venezuelan crude amid Western sanctions
• Q3 profit jumped nearly five-fold; revenue rose 16% to Rs 29,720 crore
• MRPL plans to expand retail fuel network to 500 outlets in three years

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Mangalore Refinery and Petrochemicals Ltd's (MRPL) stock fell 5% to 143.71 apiece on January 19 after a company executive said the state-run oil refiner and fuel retailer is not importing Russian oil amid Western sanctions and is looking to buy Venezuelan oil.

On Wednesday, the company posted about 5x jump in Q3 profit and revenue rose 16%. The stock jumped 9% that day but on Friday, it lost about 4.4%

In 2025, MRPL stock rose 2.5%.

Mangalore Refinery and Petrochemicals Ltd is exploring purchases of Venezuelan oil as it halts imports of Russian oil to comply with Western sanctions, its head of finance Devendra Kumar said on Monday.

The state-run refiner, which operates a 500,000-barrel-per-day refinery in the southern state of Karnataka, exports about 40% of its refined fuel output.

"We are in strict compliance with all sanctions in place and currently there is no Russian crude being imported," Kumar said on an analyst call, reported Reuters.

The US in October sanctioned Russia's two largest oil producers - Rosneft and Lukoil - giving companies until November 21 to wind down dealings with them, while the EU has said from January 21 it will not take fuel from refineries that received or processed Russian oil 60 days before the bill of lading date.

"In the near term, we do not expect anything to disrupt our exports of finished products."

Kumar said higher margins on refined fuel exports are offsetting the loss of Russian oil.

The refiner meets about 40% of its crude needs through purchases from the Middle East, in addition to sourcing from spot markets and processing domestic oil.

He said MRPL is actively considering purchases of Venezuelan oil if commercial terms, including freight rates, are favourable.

To boost its profits, MRPL has turned its focus to direct retail sales instead of selling refined fuels to other refiners.

The company plans to expand its retail fuel network to 500 outlets within three years from 200 and aims to operate 1,000 fuel stations within five years, he added.

MRPL is a subsidiary of Oil and Natural Gas Corporation (ONGC) and a Schedule ‘A’ Mini Ratna Category-I company.

MRPL Q3 Results

For the third quarter ended December 31, 2025, MRPL’s revenue from operations rose to Rs 29,720 crore, compared to Rs 25,601 crore in the corresponding period last year.

Profit before tax jumped nearly five-fold to Rs 2,214 crore, while profit after tax increased to Rs 1,445 crore, from Rs 304 crore in Q3 of FY25.

The company’s EBITDA for the quarter stood at Rs 2,824 crore, reflecting improved operational efficiency.

During the nine-month period, MRPL recorded revenue of Rs 76,661 crore. The company swung to profitability, posting a profit before tax of Rs 2,786 crore and profit after tax of Rs 1,812 crore, compared to losses in the same period of the previous financial year. Total borrowings were reduced substantially from Rs 12,867 crore to Rs 9,290 crore, while the debt-equity ratio improved to 0.63 as of December 31, 2025.

On the operational front, MRPL processed 4.70 million metric tonnes (MMT) of crude and other feedstock in Q3 and 12.65 MMT during the nine months. The company also commenced storage of crude oil at the ISPRL cavern facility in Mangaluru and processed Sarir Mesla crude from Libya for the first time.