M R P L Q2 FY27 Results (NSE: MRPL)
Signal: Margin expansion
The read
Q2FY27 marks a second consecutive quarter of YoY operating-margin expansion, with margin at 8.83% versus 4.33% a year earlier, but the trajectory remains exposed to refinery-cycle volatility and the ₹118.76 crore Coker Hydrotreater fire charge; the ₹1,900.76 crore PAT also benefits from a low effective tax rate under the new tax regime.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹35,590.4 Cr | +37.1% | -14.5% |
| EBIT | ₹2,872.03 Cr | +8.9% | |
| Net profit | ₹1,900.76 Cr | +203.0% | |
| EPS | ₹10.85 | +203.1% | |
| EBIT margin | 8.83% |
P&L walk
Revenue rose to ₹35,590.40 crore, +37.1% YoY but -14.5% QoQ; operating profit before exceptional items was ₹2,637.69 crore, +174.9% YoY, while PAT reached ₹1,900.76 crore, +203.0% YoY, aided by stronger refinery economics but reduced by a ₹118.76 crore fire provision.
Segments
The company reports a single downstream petroleum segment, and the ₹19.87 crore consolidated-over-standalone PAT gap indicates the JV contribution is immaterial to the current group result.
Key positives
- Revenue was ₹35,590.40 crore, +37.1% YoY, while operating margin expanded 450bps YoY to 8.83%.
- PAT rose 203.0% YoY to ₹1,900.76 crore and EPS rose 203.1% to ₹10.85, with EPS tracking PAT closely.
- Operating cash flow was ₹6,008.98 crore in H1FY27 versus ₹4,328.24 crore in H1FY26, while net debt declined from ₹13,769.22 crore to ₹8,551.65 crore.
- Employee costs rose only 3.0% YoY to ₹179.07 crore against 37.1% revenue growth, supporting margin recovery.
- The company incorporated a 25%-owned JV, ONGC Petrochemicals Marketing Ltd, to pursue petrochemical, chemical and related-product marketing.
Key concerns
- Revenue declined 14.5% QoQ to ₹35,590.40 crore and operating margin fell 177bps QoQ from the preceding quarter, indicating sequential volatility.
- Cost of materials increased to 81.79% of revenue from 79.19% YoY; the filing does not disclose whether the gross-margin movement reflects mix, pricing or input costs.
- Finance costs rose 29.5% YoY to ₹283.85 crore, faster than the 37.1% revenue growth only on a quarterly basis but still adding pressure to the cost base.
- Inventory rose to ₹16,749.90 crore and trade receivables to ₹7,479.89 crore at 30 September 2026, increasing working-capital intensity.
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