Mangalore Refinery and Petrochemicals Limited delivered exceptional financial performance in the third quarter of fiscal year 2026, demonstrating a remarkable turnaround in profitability and operational efficiency. The company's Board of Directors approved the unaudited financial results for the quarter and nine months ended December 31, 2025, during their meeting held on January 14, 2026.

Outstanding Q3FY26 Financial Performance

The company achieved outstanding results in Q3FY26, with key financial metrics showing substantial improvement across all parameters:

The revenue growth of 16.08% to ₹29,720.13 crores reflects improved market conditions and enhanced operational performance. The company's profit before tax increased significantly to ₹2,214.28 crores compared to ₹469.35 crores in the corresponding quarter of the previous year.

Nine-Month Performance Shows Remarkable Turnaround

The nine-month period ended December 31, 2025, showcased an even more impressive transformation in the company's financial trajectory:

Despite a 6.12% decline in total income to ₹76,814.72 crores, the company achieved a remarkable turnaround from a net loss of ₹312.56 crores in 9M FY25 to a net profit of ₹1,811.86 crores in 9M FY26.

Enhanced Financial Position and Key Ratios

The company's financial position strengthened considerably during the quarter, with several key financial ratios showing improvement:

The debt-equity ratio improvement to 0.63 times from 1.06 times indicates enhanced financial stability and reduced leverage. Total borrowings decreased significantly by 30.13% to ₹9,289.61 crores, reflecting improved cash generation and debt management.

Operational Efficiency and Cost Management

The company demonstrated strong operational efficiency with improved cost management across various expense categories. Cost of materials consumed was ₹20,394.34 crores in Q3FY26 compared to ₹20,937.77 crores in Q3FY25. The company's excise duty increased to ₹5,008.48 crores from ₹3,729.92 crores, reflecting higher production volumes and improved product mix.

Employee benefits expense remained well-controlled at ₹184.26 crores, while finance costs decreased to ₹218.96 crores from ₹263.60 crores in the corresponding quarter of the previous year, indicating effective debt management strategies.

Strong Cash Generation and Coverage Ratios

The company's cash generation capabilities improved substantially, as evidenced by enhanced coverage ratios:

• Debt Service Coverage Ratio: 1.68 times (Q3FY26) vs 0.15 times (Q3FY25)
• Interest Service Coverage Ratio: 12.90 times (Q3FY26) vs 4.04 times (Q3FY25)

These improvements demonstrate the company's enhanced ability to service its debt obligations and generate sufficient cash flows from operations. The substantial improvement in interest service coverage ratio reflects the company's strong earnings before interest, taxes, depreciation, and amortization (EBITDA) performance.

Mangalore Refinery & Petroleum Limited delivered impressive financial performance for the December quarter, with shares surging as much as 12% on Wednesday following the results announcement just minutes before market close.

Strong Stock Performance Following Results

Shares of MRPL jumped significantly after the company reported robust quarterly numbers. The stock gained as much as 12% intraday and was trading 7% higher at ₹155.28 following the results announcement. Over the past year, MRPL shares have gained 14%, reflecting sustained investor confidence in the refinery's performance.

Exceptional Financial Performance in Q3

The company's December quarter results demonstrated substantial improvement across all key financial metrics compared to the previous quarter.

Revenue Growth and Operational Efficiency

Revenue for the December quarter grew 9% from the September quarter to ₹24,712 crore from ₹22,684 crore. The revenue figures are adjusted for the excise duty component, providing a clearer picture of the company's operational performance.

The company's net profit performance was particularly impressive, surging from ₹627 crore in the September quarter to ₹1,451 crore in the December quarter, representing remarkable growth of over 131%.

EBITDA Margin Expansion Highlights Operational Excellence

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the period increased substantially to ₹2,784 crore from ₹1,489 crore in September, marking an 87% quarter-on-quarter growth.

The EBITDA margin expanded by nearly 500 basis points to 11.3% from 6.6% in the previous quarter, demonstrating significant operational leverage and improved cost efficiency across refining operations.

Market Response and Performance Summary

The strong quarterly results triggered immediate positive market response, with MRPL shares gaining up to 12% intraday. The company's performance reflects enhanced operational efficiency and favorable market conditions in the refining sector.

Key highlights of the quarterly performance include substantial profit growth, improved margins, and strong operational execution, positioning MRPL as a standout performer in the PSU refining space during the December quarter.