MRPL's FY26 Profit Soars to ₹1,931 Crore, Declares 40% Dividend

Mangalore Refinery and Petrochemicals Ltd (MRPL) reported a significant financial turnaround for the fiscal year 2025-26, with profit after tax reaching Rs 1,931 crore. This marks a substantial increase from Rs 51 crore in the previous fiscal year. The company announced a dividend of 40% (Rs 4 per equity share) at its 38th Annual General Meeting held on August 24, 2026.

Reader Takeaway: Strong profit growth driven by refining margins and expansion plans for SAF and Green Hydrogen.

What just happened

MRPL announced its financial results for FY 2025-26, showcasing a robust profit after tax of Rs 1,931 crore. This performance was significantly boosted by a higher Gross Refining Margin (GRM) of US$9.22 per barrel, compared to US$4.45 per barrel in FY 2024-25. Revenue from operations stood at Rs 1,05,155 crore, with Profit Before Tax at Rs 4,022 crore.

Why this matters

The substantial increase in profitability demonstrates MRPL's ability to capitalize on favorable market conditions and operational efficiencies. The declared dividend provides a direct return to shareholders, reflecting the company's financial health and confidence in future performance. Key strategic initiatives in sustainable fuels and decarbonization signal a forward-looking approach.

The backstory

In FY 2024-25, MRPL had reported a much lower profit after tax of Rs 51 crore. The current fiscal year shows a strong recovery, supported by improved refining dynamics and effective cost management. The company processed 16.77 million tons of crude oil in FY 2025-26, operating at approximately 112% of its rated capacity.

What changes now

With all 10 resolutions passed at the AGM, including the dividend declaration and approval of material related-party transactions, MRPL is set to proceed with its strategic plans. The operational enhancements, such as the Devangonthi Marketing Terminal becoming fully operational and the expansion of its retail network, are expected to support continued growth.

Risks to watch

While the GRM has improved, it remains susceptible to global crude oil price volatility and refining market dynamics. The success and timely commissioning of new projects like the SAF plant and Green Hydrogen facility are crucial for long-term value creation. Monitoring execution risks and regulatory approvals for these new ventures will be key.

Peer comparison

MRPL's improved GRM of US$9.22/bbl for FY26 appears strong. Competitors like Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum also operate refineries, with their performance typically influenced by similar refining margin trends and operational capacities.

Context metrics (time-bound)

• Revenue from Operations (FY26): Rs 1,05,155 crore
• Profit After Tax (FY26): Rs 1,931 crore
• Profit After Tax (FY25): Rs 51 crore
• Gross Refining Margin (FY26): US$9.22/bbl
• Gross Refining Margin (FY25): US$4.45/bbl
• Crude Processing (FY26): 16.77 million tons
• Capacity Utilization (FY26): ~112%
• Retail Outlets (Total): 252

What to track next

Investors will be keen to track the commissioning of the Sustainable Aviation Fuel (SAF) plant and the Green Hydrogen project, expected in early next year and under construction, respectively. Progress on the Grid Infrastructure Project for renewable energy intake (commissioning September 2026) and adherence to the Net Zero emissions target by 2038 are also critical.