GULFOILLUBNSEQ1FY26August 20, 2025

Gulf Oil Lubricants India Limited

6,596words

98turns

13analyst exchanges

3executives

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Management on call

Ravi Chawla

MANAGING DIRECTOR AND

Manish Gangwal

CHIEF FINANCIAL OFFICER

Probal Sen

ICICI SECURITIES LIMITED

Key numbers — 39 extracted

ng double-digit volume growth, which actually augurs very well with the industry growing at about 3%-3.5%. We have done 3x the growth, so really a good start to the quarter. Overall, I think this is

3.5%

double-digit volume growth, which actually augurs very well with the industry growing at about 3%-3.5%. We have done 3x the growth, so really a good start to the quarter. Overall, I think this is what

growth, which actually augurs very well with the industry growing at about 3%-3.5%. We have done 3x the growth, so really a good start to the quarter. Overall, I think this is what we had planned a

163%

ary Tirex continued to perform well. Though a small business now, it closed the quarter with over 163% growth and catering to a lot of broad customer bases. This is of course to reflect our ongoing co

140 million

d also like to mention that the Board has approved a capacity expansion to take our capacity from 140 million to 240 million in our Chennai and Silvassa plants. An outlay of Rs. 55 crore has been earmarked

240 million

mention that the Board has approved a capacity expansion to take our capacity from 140 million to 240 million in our Chennai and Silvassa plants. An outlay of Rs. 55 crore has been earmarked for this. I thin

Rs. 55 crore

ake our capacity from 140 million to 240 million in our Chennai and Silvassa plants. An outlay of Rs. 55 crore has been earmarked for this. I think all in all a good quarter and I will invite Manish to fill i

11%

ghted, it has been a very strong start to the year and with clearly double-digit volume growth at 11%. Our core lubricant volume for the quarter was 41,000 KL and in addition to that we had 38,000 KL

Rs. 1,000 crore

that we had 38,000 KL of AdBlue volume. On a consolidated basis, we crossed quarterly revenue of Rs. 1,000 crore for the first time. That was a big milestone for the Company, and we are very happy and delighted

140 basis point

and delighted for that. Overall, on the margin front, we have improved our gross margin by nearly 140 basis point Y- o-Y. However, we have spent slightly more on A&P. in this quarter being an IPL driven quarter

12.7%

and that is where some of the OEM royalties were higher. At EBITDA level, we have still delivered 12.7% for the quarter, which is well within our guided band of 12%-14%. So, overall, a very strong qu

12%

TDA level, we have still delivered 12.7% for the quarter, which is well within our guided band of 12%-14%. So, overall, a very strong quarter and as we have earlier announced, the board had declared

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Guidance — 19 items

Manish Gangwal

opening

“The record date has been declared for 19th of September which will be paid out after the AGM.”

Nikunj Doshi

“Just one question, this capacity expansion what we are looking for, is there any shift going to happen in product mix or more or less will be the same kind of product mix that we will be having after say, when the capacity expansion is complete?”

Ravi Chawla

“The capacity expansion is in line with what we are doing, but projecting that we are growing in various segments, obviously there will be some flexibility on the product mix in terms of our manufacturing filling lines.We want to definitely look at how we are going to upgrade some of the products with certain segments will have small packs, large packs.”

Angad

“And how do you guide on the EBITDA margin going forward?”

Ravi Chawla

“Ours is more related to what the industry will grow, the segments in which we are playing.”

Ravi Chawla

“Dhaval Jayantbhai Popat: Basically, as far as the focus, I understand, is more towards passenger cars going forward as compared to the next leg of the process, of course, one of the focuses, but if you had to choose between industrial lubricant sources or passenger cars, where would you go?”

Manish Gangwal

“That is our game plan and at that point, obviously, it will be a very meaningful pillar to our overall other segments.”

Manish Gangwal

“Overall, we believe that we will be able to complete it in 18 months’ time, but it will be in phases.”

Manish Gangwal

“Our Chennai facility expansion will be much earlier than Silvassa where we will have to do some civil constructionwork.”

Manish Gangwal

“We will keep growing at 2-3x the industry and for that the capacity expansion was necessary and that will be ready by the time we need those volumes.”

Risks & concerns — 3 flagged

It is very difficult to give you a range of the base oil price because there are various grades - Group 1, Group 2, Group 3 base oils, which we buy.

— Manish Gangwal

And sir, on our passenger vehicle front, on the B2C and B2B both, on four-wheeler passenger vehicles, are we witnessing a slowdown?

— Bharat Gulati

We don't see any challenge on the lubricant side, but EV PM E-DRIVE or any other incentive schemes are helpful for our charger business.

— Manish Gangwal

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Q&A — 13 exchanges

Congratulations on a good set of numbers. Just one question, this capacity expansion what we are looking for, is there any shift going to happen in product mix or more or less will be the same kind of product mix that we will be having after say, when the capacity expansion is complete?

Ravi Chawla

Yes. As you know, we have been growing 2-3x the industry,We make all our products in-house except greases and others. The capacity expansion is in line with what we are doing, but projecting that we are growing in various segments, obviously there will be some flexibility on the product mix in terms of our manufacturing filling lines.We want to definitely look at how we are going to upgrade some of the products with certain segments will have small packs, large packs. This is going to be a flexible kind of approach. With regards to capacity enhancement we will take care if there is any shift i

Thank you for the opportunity. Sir, my first question is on the Tirex business. On Tirex, how do we read the lumpiness in the EBITDA margin that we are seeing over the past 5-6 quarters? And how do you guide on the EBITDA margin going forward?

Manish Gangwal

See, Tirex is a very very nascent Company. It is developing various products in the charger segment. They are specialized in DC fast charger manufacturing and now, they are starting to manufacture AC chargers as well. It is a very nascent industry. We reported Rs. 80 crore of topline last year with almost neutral EBITDA. This quarter, they have turned EBITDA positive, which is a very good sign. And the quarterly turnover, as Ravi highlighted, has grown 163% to nearly Rs. 24 crore. So, overall, it is in a positive & right direction, but it is still very small in terms of base and we will have t

There are a few questions, we will try and answer and Manish can also pitch in. I think you spoke about Maruti at the beginning? Dhaval Jayantbhai Popat: CNG penetration.

Ravi Chawla

For CNG penetration you are right. In certain pockets in India, it is quite a high demand product. We have a part play in it because it is a very price competitive segment. We have the range and the drain interval is less than gasoline as you know because it is used in a different way. We have the range, but we are playing selectively because it is a very price oriented segment. We go with our sort of price positioning. We do not want to really take the whole segment because it is less attractive for us, but we are still present and we have all the products required for that. Even CNG buses, w

Yes. Thank you for the opportunity. I just have two quick questions. I just wanted to check, how much does EV now contributing to our overall revenue? And are we planning this segment to become, to make this like one of our major contributors to our revenue in the coming quarters and coming years, maybe? So, any visible threats or any competition to this segment as we further scale up? And my second question is, the Nayara tie-up, has it started showing its effect on its volume? Or is there some time left to reflect it in our numbers?

Manish Gangwal

I will take the first one, which is the EV and Tirex revenues. As we mentioned, the quarterly revenue of Tirex now is close to Rs. 25 crore. And last year, we ended the year at Rs. 80 crore of revenue for Tirex business, which we have started consolidating. And you can see that between the standalone and consolidated results, the delta is because of the Tirex consolidation. So, you will be able to find out. The good thing is that the business is growing at, for the quarter has grown 163%. We really want to almost double our turnover every year in that segment. And there is a lot of customer ac

Hi, sir. Thank you for the opportunity. Congrats on a good set of numbers. I just wanted to know that the growth that we have witnessed in the B2C segment in our MCO, in our two-wheeler segment, that was primarily due to the new product additions if you can throw some light on that?

Ravi Chawla

No. it is the same old brand we have, Gulf Pride. It was repacked in a new packaging and we backed it up with a lot of initiatives above the line, below the line. And we have also launched it at the specification level of API SP, which is the highest grade of specification. So, yes, a new pack launch along with that upgraded product in terms of the specifications. And a lot of work goes into the activations. All around with this, I think the product has received a very good response. Happy to share that it has a double-digit growth which really led the way for B2C also to do well in terms of o

Thank you for this opportunity. Sorry, I missed the first part of the call, but can I have volume for the quarter for lubes and for the AdBlue separately? Also can you help me with the battery business turnover, please?

Manish Gangwal

Yes. So, we mentioned in the opening remarks, Nisha that it is 41,000 KL core lubricant volume for the quarter and AdBlue is 38,000 KL and the battery turnover which you always ask is around Rs. 16 crore for this quarter. I think you have been tracking it quite diligently, every call. Yes. I think the AdBlue business is quite growing at a very substantial number and which is very great. So, is there any part of the strategy discussion or any part of the intentional things that we are doing around AdBlue because it is almost as equal to the lubes business that we are doing as of now? No. We rep

Just to follow up on the previous participant's question on AdBlue volume, on a Y-o-Y basis this particular AdBlue saw a flattish growth. How do you see that going forward?

Manish Gangwal

Overall, we believe that on a full year basis, we will continue to grow 10%-15% in AdBlue. Any reason for flattish growth this quarter? Last year quarter 1, we had some special promotion schemes which were not there in this quarter so that is why it is looking flattish, but overall our trajectory and the objective is to keep growing this at 10%-15% for the next few years. And sir, what is the total advertisement spend in Q1? It is in the range of 3%-4% which we have been guiding. In a quarter like this, where we had a slightly higher A&P, it is towards the higher band of this range and in a qu

Yes. Hello, thank you for the opportunity. So, given greasing industry moves such as Shell Lubricants acquiring Raj Petro and Daewoo partnering with Mangali Industries to expand in the Indian lubricants market, are there any acquisition or strategic partnership plans in place for Gulf Oil Lubricants India in the near future?

Ravi Chawla

We keep evaluating segments and particularly the niche product categories mainly in industrial segment and all, but as of now nothing on the horizon which we are in a position to announce. Thank you for the answer. Wish you all the best for the next quarter. Thank you.

Thank you, sir for the opportunity. The blended realization for this quarter has moved sharply. So, just wanted to know whether there was a price hike or it was because of the premiumization or product mix change, how is that?

Manish Gangwal

It is also mainly because of the product mix and segment mix plus since the core lubricant volume has grown much higher than AdBlue, the AdBlue was flattish and core lubricant grew by 11%, partly reflection of that. But no price hike was taken during the quarter, right? No specific price hike was taken during the quarter. Thanks.

Yes, Thank you. Sir, I will take the opportunity to ask a few questions. The first question was with respect to the tie-up with Nayara and just wanted to understand this whole controversy around their finally actually getting sanctioned by the US as part of the sanctions on Russia. On the ground do you see that impacting their India operations at all and thereby our partnership in any way or is it really does just impact their export market and therefore the domestic business remains. What is your views on that?

Manish Gangwal

See, Mr. Probal, currently it is a very small portion of our overall volumes and impact on us. We are closely watching the situation and development as well. Sir, Ravi sir had earlier mentioned about the strategic thrust on creating a manufacturing ecosystem to grow the battery business more? Just wanted to hear your thoughts if anything has moved from that front? Or what we are thinking about it? We are importing this battery. We have toll manufacturing which we are getting the battery locally. Hence, that is already being part of the supplies that we get from the toll manufacturer. We are lo

Yes. My follow-up question is on the recently the PM E-DRIVE scheme was extended up to March 31, 2028. So, how do we look to capitalize on this opportunity?

Manish Gangwal

You see, it will help definitely the EV penetration and as we have seen in certain segments in EV, it was already starting to flattening and hopefully with this extension, the growth levels in the EV will be continuing and that should help our charger business. First, a direct benefit in the PM E-DRIVE on charger segment is mainly on the CPO side and not on the manufacturing side as we understand today. But having said that the indirect benefit will definitely be there. At the same time, we believe and we continue to emphasize that in spite of EV growing at certain pace, the lubricant business

Hello. Hi sir, I just had one question. The rural markets have been showing promise with companies expanding into these markets, witnessing good topline growth. How much of the rural markets have been penetrated by us?

Ravi Chawla

We have automotive distributors and below that for many years we have been having Gulf Rural Stockists. We are growing in these areas also in terms of our distribution and rural has always been part of our focused efforts to increase distribution. We have seen always a double digit kind of growth in this segment and it continues in quarter 1. We are obviously present in all kinds of metros, Tier-1, Tier-2 and rural and we see great opportunities there. That is where again our brand is there, our activities are there and we are seeing agri and motorcycle which is used quite a lot in these segme

Thank you, everyone for being part of the call. I hope we have been able to answer your questions well. Just as an outlook definitely, we would like to just say that this has been a record quarter again and we have also now looking at a capacity expansion, our mobility business is going well. The 1st Quarter is a strong momentum. July, August, September is a monsoon quarter so slightly low in terms of demand overall, but I think the momentum is present. We will continue our going to the next level. Definitely, our teams are confident, passionate and shared purpose has always been one of our dr

Management

Speaking time

Ravi Chawla

Manish Gangwal

Moderator

Angad

Bharat Gulati

Shweta Sharma

Probal Sen

Nisha Mulchandani

Hardik Solanki

Anuj Panwar

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Opening remarks

Probal Sen

Thank you, operator. Hello, everyone. I would like to welcome all of you to this Q1FY26 conference call of Gulf Oil Lubricants India Ltd. We have with us the senior management of the Company, Mr. Ravi Chawla - the Managing Director & CEO and Mr. Manish Gangwal - the CFO. Without further ado, I would firsthand over to the Management for their opening remarks and then we will get into the Q&A. Over to you, sir.

Ravi Chawla

Thank you. Good day. Good morning. Good afternoon to everybody. This is Ravi Chawla. I am delighted to welcome all of you to this Quarterly Earnings Call. We are very happy to share with you that the 1st Quarter, the April-May-June quarter, which is starting of this financial year, has seen the highest ever quarterly volume, revenue and EBITDA, as you may have seen in the results. This is backed by a very strong double-digit volume growth, which actually augurs very well with the industry growing at about 3%-3.5%. We have done 3x the growth, so really a good start to the quarter. Overall, I think this is what we had planned and the demand conditions and our initiatives have certainly paid off. This strong note again confirms the market-leading performance that Gulf has been doing, and really, this 3x growth of industry is also due to a lot of the efforts based on the brand initiative, distribution and our focussed segment approach. I think as you know, we are into Cricket with the IPL

Manish Gangwal

Thank you, Ravi. Good afternoon, everyone. As Ravi highlighted, it has been a very strong start to the year and with clearly double-digit volume growth at 11%. Our core lubricant volume for the quarter was 41,000 KL and in addition to that we had 38,000 KL of AdBlue volume. On a consolidated basis, we crossed quarterly revenue of Rs. 1,000 crore for the first time. That was a big milestone for the Company, and we are very happy and delighted for that. Overall, on the margin front, we have improved our gross margin by nearly 140 basis point Y- o-Y. However, we have spent slightly more on A&P. in this quarter being an IPL driven quarter and we had some campaigns on our motorcycle range as Ravi highlighted and also we also had some of the OEM sales being significantly higher and that is where some of the OEM royalties were higher. At EBITDA level, we have still delivered 12.7% for the quarter, which is well within our guided band of 12%-14%. So, overall, a very strong quarter and as we ha

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