MRPL Reports Solid Q4 FY25: Margin Gains, Retail Expansion, and Future Outlook

Rahul Chaudhary

1 month ago

Table of Contents

MRPL Q4 FY25 Update: Strong Results, Focused Growth
FAQs about MRPL

MRPL Q4 FY25 Update: Strong Results, Focused Growth

MRPL Financial Results

MRPL showed a solid performance in Q4 FY25. Its Gross Refining Margin (GRM) rose to $6.23 per barrel, up 25% from the last quarter. The company earned a profit before tax (PBT) of ₹584 crore, supported by a small inventory gain of $0.42 per barrel.

For the full year FY25, MRPL had a GRM of $4.45 per barrel and a PBT of ₹113 crore. The net debt-to-equity ratio was 0.99, with total debt standing at ₹13,227 crore as of March 31, 2025.

The higher GRM was mainly due to a better product mix. MRPL focused more on high-value products like aviation fuel (ATF) and benzene, which helped boost earnings.

MRPL Operational Highlights

MRPL processed 18 million tonnes of crude during the year, which is 120% of its rated capacity—a new record for the company. The target for FY26 is slightly lower at 17 million tonnes.

The fuel and loss ratio stood at 10.09% in Q4. MRPL plans to reduce this by 0.3–0.4% in the next 18–24 months through a new grid power import project.

Distillate yield was around 83% in Q4 and 82% for the full year. Middle distillates (like diesel and jet fuel) made up about 30% of the output.

Output Growth Highlights

ATF: Up 31%
Reformat: Up 50%
Benzene: Up 65%

MRPL added six new types of crude oil to its supply list, including from Brazil, Venezuela, and Russia. Now, about one-third of its crude comes from Russia, which it buys at a $1.5–2 per barrel discount compared to other sources.

MRPL Strategic Projects and Investments

MRPL completed a few key projects recently, such as the bitumen train, wet gas scrubber, and a marketing terminal in Bengaluru.

Projects Underway

Isobutyl Benzene Plant: Expected by Aug–Sep FY26
Grid Power Import: Aims to cut energy loss, finishing by Dec 2025
Green Hydrogen: 500 TPA project under re-tendering
JT Unit Upgrade: Engineering done; buying equipment now

Future Investments

For FY26–27, MRPL plans to spend ₹1,000 crore per year. Around half will go to its refinery, while the rest will support marketing and new projects.

MRPL Retail and Marketing Growth

MRPL had 167 retail outlets by March 2025. It aims to add 150 more outlets in FY26, with a sales goal of 300 TKL, up from 230 TKL this year.

Each outlet is chosen based on expected returns. MRPL is aiming for a net margin of ₹3 per litre on petrol and diesel sales.

In direct sales, diesel volumes saw good growth. Polypropylene sales hit 473 KMT, the highest ever. Exports made up about 30–35% of sales, with key products being diesel, ATF, reformat, and benzene.

MRPL Product Focus and Margins

MRPL can adjust output between ATF, diesel, petrol, and reformat, depending on market trends. In Q4, diesel was the main focus due to weaker prices for jet fuel.

Benzene and reformat offer better profit margins than standard fuel refining. Polypropylene also performed well, with limited pressure from exports.

Distillate yield has improved over the years:

FY22: 77.25%
FY25: 81.9%

For FY26, MRPL expects GRMs to stay between $6.0–6.5 per barrel, based on current market trends.

MRPL Industry Outlook

Demand for fuel in India is growing. As per government data:

Petrol (MS) demand: +6.5%
Diesel demand: +3%

Even with new refining capacity coming from HRRL and IOCL, MRPL is confident that domestic sales will grow.

Globally, new refining capacity is moderate. Some plants in Europe and Australia are shutting down. India is expected to increase refining capacity from 260 million tonnes per year to 450 MTPA by 2045.

Product Pricing Outlook

Diesel cracks: $10–12/bbl
Petrol and other distillates: Gaining strength
MRPL expects margins to stay healthy in the near future

MRPL Financial Health

The company wants to keep its debt-to-equity ratio close to 1.

MRPL also benefits from past tax losses. These can be used till FY27, as long as the company follows the rules around business continuity during mergers.

MRPL Merger Status

The proposed merger between HPCL and MRPL has not moved forward yet. Any decision will come from ONGC and HPCL, the parent companies.

Other Key Insights About MRPL

MRPL sells in domestic markets first, as margins are better than exports.
It used 0.55 MMSCMD of gas in FY25 and is targeting 0.65–0.7 MMSCMD in FY26.
MRPL does not provide detailed breakdowns for different segments. Its GRM includes all operations—refining, chemicals, and marketing.

What MRPL’s Management Said

MRPL’s team is confident about the future. They’ve kept high plant use, improved fuel yields, and are focused on increasing margins through better product choices and flexible crude buying.

The company is investing only in projects that give a good return and is building its retail and chemical brand slowly but steadily.

Key quotes from management:

“We recovered well this quarter and are working on long-term margin improvement.”
“We’re confident about running at more than 100% capacity and reducing risks through smarter crude buying.”
“Our retail goal is to earn ₹3 per litre from fuel sales.”

Risks to Watch

Here are a few things that could impact MRPL:

Russian oil might get less discounted, which could hurt profits.
No clear numbers for marketing and chemical profits.
Risk of delays in new projects like hydrogen or power upgrades.
New refineries in India could put pressure on prices. MRPL is counting on growing demand to balance this.

Conclusion: What’s Next for MRPL?

MRPL had a strong quarter and a decent full-year result. It hit record levels of refining and improved product margins. The company is focused on being flexible, cutting waste, and growing retail and chemical sales.

Even though there are some risks—like crude discounts and new capacity coming online—MRPL looks well-placed to grow. Its plan is clear: keep costs in check, invest wisely, and meet rising demand in India.