MRPL shares tumble 8%: Two key factors from Q1 results trigger sharp sell-off

Shares of Mangalore Refinery and Petrochemicals Ltd (MRPL) saw a sharp correction in Monday's trade after the Oil and Natural Gas Corporation (ONGC) Ltd subsidiary reported a consolidated net loss of Rs 271 crore for the June 2025 quarter, compared to a net profit of Rs 73 crore in the same quarter last year.

In addition, the company's Gross Refining Margin (GRM), a key indicator of profitability in the refining business, dropped to $3.88 per barrel from $4.70 per barrel year-on-year (YoY), highlighting the pressure on MRPL's core operations. GRM is the difference between the total value of petroleum products coming out of an oil refinery and the price of the raw material, which is crude oil.

The stock plunged 8.47 per cent to hit a day low of Rs 136.70 and was last seen trading 6.03 per cent lower at Rs 140.35. At this level, the scrip has declined 0.43 per cent over the past six months. Following its Q1 earnings and a largely flat performance in recent months, some market experts have maintained a bearish outlook on the counter.

MRPL came under pressure today following a sharp decline in its GRM, which weighed heavily on investor sentiment, stated Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

"Investors seeking a short-term trading opportunity may consider buying the stock at Rs 138, targeting an upside towards Rs 142, with a stop loss at Rs 133. However, for others, the broader view remains cautious, as the stock has largely traded flat over the past six months, suggesting scope for profit booking," said Ravi Singh, Senior Vice-President of Retail Research at Religare Broking.

"MRPL stock price is bearish on daily charts with strong resistance at Rs 149. A daily close below the support of Rs 136 could lead to a downward target of Rs 124 in the near term," noted Sebi-registered independent analyst AR Ramachandran.

MRPL is a Public Sector Undertaking (PSU), classified as a Category 1 Miniratna Central Public Sector Enterprise, operating under the Ministry of Petroleum & Natural Gas. As of June 2025, the government held an 88.58 per cent stake in the refiner.