Revenue and Operating Performance Trends
MRPL's net sales have demonstrated notable volatility, peaking at over ₹1,09,000 crores in the fiscal year ending March 2023 before declining to approximately ₹94,682 crores by March 2025. The company saw a substantial increase in sales from ₹32,058 crores in March 2021 to ₹69,727 crores in March 2022, indicating a strong recovery phase. However, the subsequent years showed a mixed trajectory with sales dipping after the 2023 peak.
Operating profit margins have mirrored this variability. The operating profit margin excluding other income reached a high of 8.53% in March 2024 but contracted sharply to 2.42% by March 2025. Gross profit margins followed a similar pattern, peaking at 7.48% in 2024 before falling to 1.52% in the latest fiscal year. These fluctuations suggest challenges in cost management and pricing pressures amid changing market conditions.
Operating profit (PBDIT) excluding other income surged from a loss of ₹3,154 crores in March 2020 to a robust ₹7,708 crores in March 2024, before declining to ₹2,293 crores in March 2025. This volatility underscores the cyclical nature of MRPL's business and the impact of external factors such as raw material costs and demand shifts.
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Profitability and Earnings Analysis
Profit before tax (PBT) and profit after tax (PAT) figures highlight the company's fluctuating profitability. MRPL posted a loss before tax of nearly ₹5,400 crores in March 2020, recovering to a profit of ₹5,508 crores by March 2024, before sharply declining to just ₹91 crores in March 2025. Correspondingly, PAT swung from a loss of over ₹4,000 crores in 2020 to a peak profit of ₹3,582 crores in 2024, then dropped to a marginal ₹28 crores in the latest year.
Earnings per share (EPS) reflect this trend, with negative values in 2020 and 2021 turning positive and reaching over ₹20 in 2024, before falling to a mere ₹0.32 in March 2025. The PAT margin similarly contracted to 0.06% in the latest fiscal year from a high of 3.98% the previous year, signalling pressure on net profitability.
Interest expenses have remained substantial, hovering around ₹1,000 crores annually, which, combined with depreciation costs exceeding ₹1,300 crores in recent years, weigh on net earnings. The company has not reported any exceptional or extraordinary items in recent years, indicating that these profit fluctuations are primarily operational.
Balance Sheet and Financial Position
MRPL's total assets have remained relatively stable, around ₹34,000 crores in the latest fiscal year, down slightly from a peak near ₹38,000 crores in 2022. Shareholders' funds have grown steadily from ₹4,248 crores in 2021 to nearly ₹13,000 crores in 2025, reflecting accumulated reserves and retained earnings despite profit volatility.
The company’s debt profile shows a marked reduction in total debt from over ₹23,800 crores in 2021 to zero reported in 2025, suggesting significant deleveraging or reclassification. Long-term borrowings have decreased from ₹15,699 crores in 2021 to ₹8,229 crores in 2025, while short-term borrowings have fluctuated but remain elevated at ₹4,638 crores in the latest year.
Net block of fixed assets has remained broadly consistent, around ₹19,300 crores, indicating stable capital investment. Capital work in progress has declined from over ₹2,300 crores in 2021 to approximately ₹720 crores in 2025, signalling completion of major projects or reduced capital expenditure.
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Cash Flow and Liquidity Overview
Cash flow from operating activities has shown a strong recovery from negative ₹2,818 crores in 2021 to a positive ₹1,877 crores in 2025. This improvement reflects better working capital management and operational cash generation. Investing activities have consistently been cash outflows, averaging around ₹900 crores annually in recent years, indicating ongoing capital expenditure.
Financing activities have been a net cash outflow since 2021, with ₹937 crores outflow in 2025, consistent with the reduction in borrowings. The company’s closing cash and cash equivalents have remained low but stable, around ₹10 crores in the latest fiscal year.
Overall, MRPL's cash flow profile suggests a focus on deleveraging and operational cash generation, though liquidity remains tight given the low cash balances.
Summary
MRPL's historical performance over the past six years has been characterised by significant fluctuations in revenue and profitability, reflecting the cyclical nature of the oil refining sector and external market pressures. While the company achieved strong revenue growth and profitability peaks in 2023 and 2024, recent results indicate margin compression and subdued net earnings. The balance sheet shows a commendable reduction in debt levels and steady growth in shareholder equity, supported by stable asset base and capital investments. Cash flow trends point to improving operational cash generation and disciplined financing. Investors should weigh these dynamics carefully when assessing MRPL's future prospects.
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