M R P L Q1 FY27 Results (NSE: MRPL)
Signal: Loss reversed
The read
Q1FY27 marks a sharp revenue rebound (+120% YoY to ₹41,609 Cr) and PAT turnaround to ₹946 Cr (vs loss of ₹271 Cr) aided by a ₹472 Cr exceptional price revision income from prior-period supplies. Excluding that one-off, underlying PAT would be ~₹474 Cr, still a strong recovery from the year-ago loss. However, underlying OPM ex-exceptionals remains thin at ~1.8% (operating margin as per filing definition 2.4%), as cost of materials consumed soared to 84.7% of revenue (vs 72.3% a year ago) and employee/other costs grew >70% YoY. The tax benefit from opting for the new regime (effective rate 25.2% vs 34.9%) added ~₹40 Cr to net profit. The debt-to-equity ratio improved to 0.76x (from 1.08x a year ago), and total borrowings fell to ₹11,563 Cr from ₹13,609 Cr.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹41,608.96 Cr | 120.4% | 46.0% |
| EBIT | ₹1,488.37 Cr | 3.0% | |
| Net profit | ₹945.68 Cr | 449.4% | |
| EPS | ₹5.4 | 450.6% | |
| EBIT margin | 2.2% |
P&L walk
Revenue of ₹41,609 Cr jumped 120% YoY, driven by higher volumes and price revisions; cost of materials consumed rose to 84.7% of revenue (from 72.3% a year ago), compressing gross margin. Employee costs jumped 271% YoY (₹177 Cr vs ₹48 Cr) and other expenses rose 71% (₹1,058 Cr vs ₹619 Cr). Net PAT of ₹946 Cr includes a ₹472 Cr exceptional price revision income; excluding that, underlying PAT would be ~₹474 Cr, still a sharp turnaround from a loss of ₹271 Cr in Q1FY26. The tax rate dropped to ~25.2% vs 34.9% earlier due to opting for new tax regime, adding ~₹40 Cr to bottom line.
Segments
Single-segment downstream petroleum sector; no segment split available.
Key positives
- Revenue jumped 120% YoY to ₹41,609 Cr, driven by higher crude throughput and price revisions.
- PAT turnaround to ₹946 Cr vs loss of ₹271 Cr in Q1FY26; EPS of ₹5.40 vs ₹-1.54.
- Exceptional income of ₹472 Cr from revision of prior-period petroleum product prices added to bottom line.
- Debt-to-equity improved to 0.76x vs 1.08x a year ago; total borrowings down to ₹11,563 Cr from ₹13,609 Cr.
- Effective tax rate reduced to 25.2% from 34.9% due to opting for new tax regime under Section 200 of Income Tax Act, 2025.
Key concerns
- Underlying OPM ex-exceptionals remains thin at ~1.8% (operating margin 2.4%) as cost of materials consumed rose to 84.7% of revenue from 72.3% a year ago.
- Employee benefits expense jumped 271% YoY (₹177 Cr vs ₹48 Cr) and other expenses rose 71% (₹1,058 Cr vs ₹619 Cr), far outpacing revenue growth.
- Exceptional item of ₹472 Cr is a one-off prior-period price revision; repeatability is uncertain.
- Board lacks requisite number of independent directors as per SEBI LODR and Companies Act; audit committee functions carried out by full board.
Research and educational content only. Not investment advice.