Mangalore Refinery and Petrochemicals (MRPL) has delivered exceptional financial performance in Q3FY26, with EBITDA reaching ₹27.8bn, representing a substantial improvement from ₹14.9bn recorded in Q2FY26. The results significantly surpassed analyst expectations, with Prabhudas Lilladher's estimate of ₹18.5bn and consensus estimates of ₹21.1bn. The strong performance was primarily driven by stronger fuel cracks and higher utilization rates across the company's operations.

Outstanding Financial Performance

The company's profitability metrics showed remarkable improvement across key parameters during the quarter:

The profit after tax (PAT) performance was particularly noteworthy, with the company achieving ₹14.5bn compared to Prabhudas Lilladher's estimate of ₹8.1bn and consensus estimates of ₹10.5bn. This represents a significant improvement from ₹6.4bn in Q2FY26 and ₹3.0bn in Q3FY25.

Operational Excellence and Throughput Growth

MRPL's operational efficiency continued to improve, with throughput reaching 4.7mmt during the quarter, exceeding Prabhudas Lilladher's estimate of 4.4mmt. The company achieved quarter-on-quarter growth of 6.1% and year-on-year growth of 2.2% in throughput volumes. This operational improvement contributed significantly to the strong financial performance, demonstrating the company's ability to maximize capacity utilization.

Strategic Expansion Plans

The company has outlined ambitious expansion plans for its marketing presence, targeting significant growth in retail operations. MRPL plans to expand its retail outlet network to 1,000 outlets over the next five years, representing a substantial increase in its downstream presence. This strategic initiative aims to strengthen the company's market position and enhance its direct customer reach.

Market Conditions and Future Outlook

While MRPL benefited from favorable market conditions during Q3FY26, crack spreads have since moderated to Q2FY26 levels. Prabhudas Lilladher has incorporated gross refining margins (GRM) of USD 7.6 per barrel for FY27E and USD 7.5 per barrel for FY28E in their projections, reflecting expectations of normalized market conditions.

Analyst Recommendation and Valuation

Prabhudas Lilladher has maintained its 'ACCUMULATE' rating on MRPL with a revised target price of ₹162, down from the previous target of ₹168. The valuation is based on 6.0x December FY27 EV/EBITDA multiple. Currently, the stock trades at attractive valuations of 6.5x FY27E and 5.9x FY28E EV/EBITDA multiples.

The brokerage has adjusted its assessment of the company's chemicals business, lowering the option value from ₹45 to ₹22, as the commercialization plans remain several years away. Despite this adjustment, the strong refining performance and strategic expansion plans support the positive investment thesis for MRPL.

IG Petrochemicals Limited (IGPL) has officially completed its acquisition of IG Biofuels Ltd., marking a significant milestone in the company's strategic expansion. The petrochemicals company confirmed through regulatory filings that IG Biofuels has become its wholly owned subsidiary, effective December 9, 2025.

Official Confirmation and Regulatory Filing

The company made the announcement through official letters to both BSE Limited and The National Stock Exchange of India Ltd. on December 10, 2025. The communication was signed by Company Secretary Sudhir R. Singh, confirming the completion of the acquisition process.

Acquisition Timeline and Background

This acquisition represents the culmination of a strategic process that IGPL had previously disclosed to investors. The company made initial announcements regarding this move in May 2023 and provided updates in November 2025, demonstrating a systematic approach to expanding its business portfolio.

Regulatory Compliance Framework

IGPL has maintained full compliance with regulatory requirements by making timely disclosures under Regulation 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The official communication referenced previous letters dated May 18, 2023, and November 3, 2025, ensuring complete transparency with shareholders and market participants.

Strategic Business Implications

The acquisition of IG Biofuels Ltd. represents a significant consolidation move for IG Petrochemicals. By bringing IG Biofuels under complete ownership, IGPL strengthens its position in the petrochemicals sector while potentially expanding into the biofuels market segment. This strategic move aligns with the company's growth objectives and portfolio diversification plans.

The completion of this acquisition may create opportunities for operational synergies, enhanced market presence, and expanded product offerings. As the integration process moves forward, stakeholders will be monitoring how this strategic development impacts IGPL's overall business performance and market positioning in subsequent quarters.