MRPL Stock Drops 5% After Company Discontinues Russian Crude Purchases

Mumbai:  Shares of Mangalore Refinery and Petrochemicals Ltd (MRPL) slipped around 5% on Monday after the company decided to discontinue sourcing crude oil from Russia, a move that unsettled investor sentiment.

The decline came as markets assessed the impact of the decision on MRPL’s cost structure. Russian crude had been a key source of discounted oil for Indian refiners over the last few years, helping improve refining margins amid global volatility.

With Russian supplies now off the table, MRPL is expected to rely more on crude from traditional suppliers in the Middle East and other international markets, which could result in higher input costs. Analysts caution that sustained cost pressures may weigh on margins if global crude prices remain elevated.

Industry experts also point to logistical and payment-related challenges, along with changing geopolitical dynamics, as factors influencing the company’s decision.

While the near-term reaction has been negative, analysts believe MRPL’s operations remain fundamentally sound, supported by stable domestic fuel demand. However, the stock may stay volatile as investors track the impact of the shift in crude sourcing on profitability.

The broader market remained relatively steady, but MRPL underperformed its sector peers during the session.