| Mangalore Refinery and Petrochemicals Limited | ||||||
| Ratings reaffirmed at 'Crisil AAA/Stable/Crisil A1+' | ||||||
| Rating Action | ||||||
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| Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||||
| 1 crore = 10 million | ||||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed Rationale Crisil Ratings has reaffirmed its ‘Crisil AAA/Stable/Crisil A1+' ratings on the bank facilities and debt instruments of Mangalore Refinery and Petrochemicals Limited (MRPL). The corporate credit rating is also reaffirmed at 'Crisil AAA/Stable’.
The ratings continue to take comfort from the strong operational, financial, and managerial support the company receives from its parent, Oil and Natural Gas Corporation Limited (ONGC). MRPL continues to remain strategically important to its parent’s strategy of being an integrated oil and gas entity with presence established across the entire oil and gas value chain.
Robust physical performance with strong utilization of capacity has translated into revenue growth in fiscal 2025 despite the sharp moderation of the GRM (Gross Refining Margin). The company reported throughput of 18.18 MMT at ~121% utilisation, while GRM (including inventory gains and losses) moderated to $4.45 per barrel from $10.36 per last fiscal due to global economic slowdown, moderation in product crack spreads and volatility in global oil prices. Over the medium term, company’s GRM is expected to be healthy and in-line with product crack spread in the international markets.
Despite these challenges, MRPL’s operating income net off excise duty improved by ~5% y-o-y to Rs 94,857 crore supported by strong refinery output while EBITDA (Crisil Ratings adjusted) was reported at Rs 2,469 Crore in fiscal 2025 from Rs 7,899 Crore in fiscal 2024. Resultantly, gearing moderated but remained comfortable at 1.03 times relative to 0.97 time as on March 31, 2024, while adjusted interest coverage ratio moderated to 2.5 times for fiscal 2025 from ~7.1 times the previous fiscal given overall debt remained largely stable at Rs 12,867 Cr as on 31st March 2025. Over the medium term, healthy operating performance and cash accrual should be sufficient to fund capex needs, upcoming debt as well as planned investments; with stable debt levels keeping financial risk profile healthy in fiscal 2026. The company continues to derive financial flexibility from being a part of the ONGC group and its ability to access capital markets, which enables it to raise funds at a short notice on favourable rates. |
Analytical Approach The ratings centrally factor in the strategic importance of the company to, and strong support from, its parent, ONGC. |
Key Rating Drivers & Detailed Description Strengths:
Weaknesses:
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Liquidity: Superior The support received from ONGC strongly benefits the company’s financial flexibility, enabling it to access funding sources at attractive rates. MRPL also has access to fund-based limit of Rs 900 crore, with nominal utilisation. Combined debt obligation of around Rs 1,485 crore in fiscal 2026 will be funded through internal accruals.
ESG Profile Crisil Ratings believes the environment, social, and governance (ESG) profile of MRPL supports its strong credit risk profile.
The oil and gas sector has a moderate environmental and social impact, primarily driven by its raw material sourcing strategies, waste intensive process, and its direct impact on the health of the environment. The company has continuously focused on mitigating its environmental and social risks.
Key ESG highlights:
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Outlook: Stable Crisil Ratings believes the company will remain strategically important to, and will continue to receive the required operational, managerial, and financial support from its parent, ONGC. |
Rating sensitivity factors Downward Factors:
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About the Company A standalone refinery, MRPL is ~80% held by ONGC, 71.63% held directly and the remaining indirectly through its shareholding in Hindustan Petroleum Corporation Ltd. It is located near Mangaluru port in Karnataka, and has a nameplate capacity of 15 million tonne per annum.
Its aromatic complex, commissioned in fiscal 2015, has capacity to produce around 920 kilo tonne per annum (KTPA) of paraxylene and around 280 KTPA of benzene, along with other by-products. The plant has one of the largest paraxylene manufacturing capacities in India. It utilises feedstock (naphtha and aromatic streams) from the company’s refinery adjacent to the plant.
MRPL’s refinery configuration has a Nelson Complexity Index of 11.67, and Petchem intensity of ~9.5%. |
Key Financial Indicators
*Based on abridged financials |
Any other information: Not applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
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| Annexure - Rating History for last 3 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| All amounts are in Rs.Cr. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | ||||||||
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Criteria Details
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