MRPL, CPCL shares climbed up to 8% today; here's why

Shares of Mangalore Refinery and Petrochemicals Ltd (MRPL) and Chennai Petroleum Corporation Ltd (CPCL) climbed up to 8 per cent in Friday's trade, as Brent crude oil futures sustained over $100 a barrel level for the fourth straight day. Brent stood at $106.94 a barrel level on Friday compared with $60.32 a barrel at the end of 2025, up 77 per cent.

YES Securities noted that standalone refiners such as MRPL and CPCL are well -positioned to benefit in a volatile refining environment, given their limited or no exposure to marketing losses. With refining forming the primary earnings driver, these players are likely to see stronger profitability as GRMs remain elevated, it said. 

"In addition, rising crude and product prices can result in inventory gains, as refiners are able to book higher realizations on existing stocks, making periods of upward price movement supportive for nearterm earnings," it said in a March 16 note. 

By 11.46 am, MRPL shares had climbed 8.49 per cent to hit a high of Rs 200.60. CPCL rose 6.67 per cent to a high of Rs 1,090.45 apiece.

Indian refineries, particularly those with complex configurations, are well suited to process medium-sour grades such as Urals. This capability allows refiners to efficiently handle heavier and sour crude streams if available, helping optimise crude sourcing and sustain stronger margins in a dynamic global supply environment, YES Securities added.

That said, Equirus Securities is possible risk of government intervention.

It said firms such as MRPL and CPCL are more sensitive to global crack spreads. In the past, it said, GRMs have swung from negative to very high levels within a quarter depending on the policy intervention and export exposure. 

In a recent strategy note, Elara Securities said the recent escalation in the Iran conflict has materially increased volatility across the oil & gas value chain. Its Brent sensitivity analysis across 14 stocks highlighted a clear divergence in earnings risk at higher crude prices. 

"At $100-150/bbl, upstream companies (ONGC and Oil India) see initial benefit, while realisations are expected to remain policy -capped at +USD 80/bbl crude oil. RIL and standalone refiners (CPCL and MRPL) are better positioned as stronger GRMs can offset feedstock inflation," it said.