Credit Rating- New

MANGALORE REFINERY AND PETROCHEMICALS LIMITED आई.एस.ओ. 9001, 14001 एवं 50001 प्रमाणित कंपनी AN ISO 9001, 14001 AND 50001 CERTIFIED COMPANY सीआईएन / CIN : L19200KA1988G01008959 , Website : www.mrpl.co.in 29/09/2026 The Assistant General Manager, The Compliance & Listing Department Listing Compliance, BSE Limited National Stock Exchange of India Limited Scrip Code: 500109, Symbol: MRPL, Series: EQ, ISIN: INE103A01014 ISIN: INE103A01014 Scrip Code (Debenture): 959162, 959250, Debt Security: INE103A08019, INE103A08035, 973692 INE103A08050 Dear Sir/Madam, Subject: Assignment of Initial (New) Credit Rating by M/s FITCH Ratings to MRPL. Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, it is hereby informed that M/s Fitch Ratings Limited, International Credit Rating Agency, has accorded Long Term Issuer Default Rating as ‘BBB-’ with Stable Outlook to Mangalore Refinery and Petrochemicals Limited. This is the first rating of the company published by an International Rating Agency. Details of Credit Rating are enclosed for reference and records. This is to request you to kindly take the above on record. Thank you. Yours faithfully, For Mangalore Refinery and Petrochemicals Limited Aiz— Premachandra Rao G Company Secretary ri Encel.: A/a Email iinnyveesstotro@rm@rpmlm.pcloc.ioni n Udlfi pa@कmारi्यtालaय : gage पोस्ट,, व वााययाा ककााटटीीपपलल््ललाा ममंंगगलुलरुुर ु- -557755 003300 (भभारता) रत)... 1Te6l:: 00882244--222277004400CC 9/29/26, 4:59 PM Fitch Assigns Mangalore Refinery First-Time ‘BBB-' IDR; Outlook Stable (७ SigInn | Register FitchRatings RATING ACTION COMMENTARY Fitch Assigns Mangalore Refinery First-Time 'BBB-' IDR; Outlook Stable Tue 29 Sep, 2026 - 4:42 AMET Fitch Ratings - Singapore - 29 Sep 2026: Fitch Ratings has assigned India-based oil refiner Mangalore Refinery and Petrochemicals Limited (MRPL) a Long-Term Foreign- Currency Issuer Default Rating (IDR) of 'BBB-. The Outlook is Stable. Fitch has also assigned MRPL a senior unsecured debt rating of ‘BBB-. MRPL is rated at the same level as its parent, Oil and Natural Gas Corporation Limited (ONGC, BBB-/Stable), based on our assessment of ‘High’ operational and 'Medium' strategic incentives for ONGC to support MRPL. This results in a top-down -1 notching approach under our Parent and Subsidiary Linkage (PSL) Rating Criteria. However, we assess MRPL's Standalone Credit Profile (SCP) as 'bb+', which is a notch below ONGC's IDR. As aresult, MRPL's rating is equalized with ONGC's, in line with our criteria. MRPL's 'bb+' SCP underpinned by its strong asset quality, supported by a high- complexity refinery, Fitch's expectation of robust gross refining margins (GRMs) and sustained low leverage. These credit strengths are partially offset by MRPL's single plant location and exposure to the cyclical nature of the international refining industry. KEY RATING DRIVERS Rating Equalized with ONGC: MRPL's rating is equalized with that of stronger parent ONGC, which owns an 88.6% stake, directly and indirectly. We believe ONGC has ‘High’ operational incentives to support MRPL, due to their highly integrated management, brand overlap and the reputational risk ONGC would face if MRPL were to default. This integration is evident from a shared chairman and a history of senior management exchanges between the two companies. Our assessment of 'Medium' strategic incentives reflects MRPL's contribution as part of ONGC's downstream integration, and with a potential increase in MRPL's fuel retail footprint. MRPL has also received tangible support from ONGC through a guarantee of hittps:/Awww.fitchratings.com/research/corporate-finance/fitch-assigns-mangalore-refinery-first-time-bbb-idr-outlook-stable-29-09-2026 111 9/29/26, 4:59 PM Fitch Assigns Mangalore Refinery First-Time 'BBB-' IDR; Outlook Stable up to USD500 million for crude oil purchases from Saudi Arabian Oil Company (A+/Stable). High Refinery Complexity: MRPL operates a 15 million tonnes per annum (mtpa) refinery with consistent capacity utilization above 110% and a Nelson Complexity Index (NCI) of 11.7. This enables the processing of over 250 crude oil grades from various sources and the production of a substantial share of middle distillate products, including diesel and jet fuel. The ability to optimise crude intake and refinery output lends some margin stability. MRPL's margin is further enhanced by its aromatics facility, which is capable of producing 0.9 mtpa of paraxylene and 0.3 mtpa of benzene and has the flexibility to produce reformate and gasoline. Asset and Business Concentration: MRPL's SCP reflects its single-asset operation and limited diversification, with over 90% of consolidated EBITDA from its Mangaluru refinery. Escalation of the Middle East conflict could affect crude availability and MRPL's operations, but this is not Fitch's base case. This risk is mitigated by MRPL's diversified supplier base, long operating record and insurance cover for equipment damage and loss of profit. MRPL aims to diversify by expanding its fuel retail presence and is considering pipeline operations. High GRM Amid Middle East Conflict: We expect MRPL's GRM, based on our calculation, to remain high at around USD8.5/barrel (bbl) in the financial year ending March 2027 (FY27, FY26: USD9.22/bbl), before declining to the long-term average of USD7/bbl from FY28. Near-term GRMs are driven by supply-chain disruptions amid the Middle East conflict, despite export duties on certain fuels and heightened crude prices weighing on margins. MRPL has secured adequate crude oil amid the conflict, as reflected in its refinery utilization rate of 118% in 1QFY27. Leverage to Remain Low: We forecast MRPL's EBITDA net leverage to stay at 1.9x in FY27 (FY26: 1.9x), easing to 1.8x in FY28. FY27 EBITDA generation will benefit from above average GRMs, but higher and volatile crude oil price will cause working capital outflows, as seen in March 2026, when the conflict started. We expect a reduction in FY28 net leverage from lower working capital borrowings as oil prices decline. We also expect MRPL's FCF to turn positive in FY27 and remain so, unless GRMs weaken significantly or a major project is undertaken. Moderate Capex, for Power, Retail: MRPL aims to increase its grid connectivity in FY27, which should improve margins by freeing refined fuel for external sales, instead of power generation. It also aims to double its fuel outlets to 500 by FY29 to boost fuel https:/Awww.fitchratings.com/research/corporate-finance/fitch-assigns-mangalore-refinery-first-time-bbb-idr-outlook-stable-29-09-2026 21 9/29/26, 4:59 PM Fitch Assigns Mangalore Refinery First-Time ‘BBB-' IDR; Outlook Stable retail. MRPL has no firm plan to expand its refining or petrochemical capacity, and we assume average annual capex of INR15.5 billion over FY27-FY29 (FY26: INR14.1 billion). A major expansion project, if announced, would raise capex, but the credit impact could be offset by an improvement in MRPL's business profile. PEER ANALYSIS MRPL's SCP and PSL analysis can be compared with that of fellow ONGC subsidiary, Hindustan Petroleum Corporation Limited (HPCL, BBB-/Stable; SCP: bb), and another Indian oil marketing company, Bharat Petroleum Corporation Limited (BPCL, BBB-/Stable, SCP: bb+). HPCL's SCP is weaker than MRPL due to our expectation of higher leverage and higher capex intensity, although we assess HPCL's business profile to be comparable with that of MRPL. MRPL benefits from higher complexity of its refinery leading to higher refining margins, offset by HPCL's larger operational scale, and business diversification due mainly to a significant fuel retail presence. HPCL's rating is equalized with that of ONGC, based on Fitch's assessment of 'High' strategic and 'High' operational incentives for ONGC to provide support. Compared with MRPL, HPCL's larger contribution to ONGC's consolidated financials, and presence in the socially important fuel retail [Showing first 8,000 characters — download PDF for full document]