GULFOILLUBNSEQ4 FY26June 2, 2026

Gulf Oil Lubricants India Limited

7,269words

59turns

8analyst exchanges

3executives

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Management on call

Ravi Chawla

MANAGING DIRECTOR AND

Manish Gangwal

WHOLE-TIME DIRECTOR

Probal Sen

ICICI SECURITIES LIMITED

Key numbers — 33 extracted

ually a very good quarter for us, but we've continued to really grow as we've always been growing 2x to 3x. But this quarter, we can highlight that we've done a 14% growth, which is by far in volume

a very good quarter for us, but we've continued to really grow as we've always been growing 2x to 3x. But this quarter, we can highlight that we've done a 14% growth, which is by far in volume, one

14%

grow as we've always been growing 2x to 3x. But this quarter, we can highlight that we've done a 14% growth, which is by far in volume, one of the highest quarters for many years now. So that's been

10.5%

lso closed the year with a double-digit growth FY'26 in lubricants, we have done a double-digit 10.5% growth, again, 2x to 3x the industry. When we look at what's happening in the market and the year

INR 4,000 crore

here and our teamwork. And we've also closed the year on a high note in terms of revenue crossing INR 4,000 crores for the first time in terms of our business. And we also have seen every category, the passeng

INR 100 crore

urse, our mobility EV subsidiary Tirex, has been gaining momentum and has crossed the landmark of INR 100 crores in the year. Again, a lot of traction on key marquee customer additions, across both the fast ch

lso recorded a very good 40,000 KL volume, which again is the highest, and that also delivered an 8% growth on volume side. Overall revenue following the volume growth is nearly 14%, which is also o

8.5%

ation and the Middle East crisis is starting March, we have been able to deliver EBITDA growth of 8.5% and INR 135 crores EBITDA for the quarter is again the highest ever EBITDA, led by volume deliver

INR 135 crore

the Middle East crisis is starting March, we have been able to deliver EBITDA growth of 8.5% and INR 135 crores EBITDA for the quarter is again the highest ever EBITDA, led by volume delivery. So overall, a v

INR 510 crore

nsolidated revenues crossed INR 4,000 crores, and EBITDA for the year also is the highest ever at INR 510 crores on a stand-alone basis and nearly INR 514 crores on a consolidated basis. So overall, all the pa

INR 514 crore

EBITDA for the year also is the highest ever at INR 510 crores on a stand-alone basis and nearly INR 514 crores on a consolidated basis. So overall, all the parameters in spite of headwinds of rupee depreciat

INR 51

g the overall profit delivery, the Board has also recommended yesterday, highest ever dividend of INR 51 for the full year, which means a final dividend of INR 30, which follows the INR 21 interim divide

Guidance — 17 items

Probal Sen

opening

“As always, management will deliver their opening remarks, after which we can have an interactive Q&A session.”

Ravi Chawla

opening

“For the Q4, which has ended well for us, as I mentioned, on record highs, we've also closed the year with a double-digit growth FY'26 in lubricants, we have done a double-digit 10.5% growth, again, 2x to 3x the industry.”

Ravi Chawla

“And EV fluids, we have already got into a number of OEMs, and we will be happy to share with you a few more names shortly as we see that portfolio growing.”

Sucrit D Patil

“Manish is what type of capital allocation and risk management framework are being applied in FY27 to balance dividend payout with funding for R&D in EV compatible lubricants and hedging against forex and crude price volatility, and any sustainable liquidity buffers for working capital expansion?”

Ravi Chawla

“Now we're happy to share with you that these products are now tested for their critical material compatibility parameters for the components that are used, soon we will be testing this in data centers to see.”

Arya Patel

“So because of the disruption, do we see our margins to be impacted in, say Q1 or Q2 of FY27 or we maintain our 12%-14% guidance for the quarter?”

Manish Gangwal

“We still hope to maintain our 12% to 14% band in terms of margin.”

Sudeep Anand

“And how do you see FY27, any upward revision in the growth guidance which we had given it on 2 to 3x of the industry growth, which is around 8% to 9%.”

Nilesh Sharma

“How will our product will be different from industry leading products?”

Nilesh Sharma

“Okay and sir, from an investor point of view, is it fair to assume that we can expect any revenue from coming 2 quarters at least or coming this financial year?”

Risks & concerns — 7 flagged

What are the strategic levers you are prioritizing in FY2026-27 to expand Gulf Oil Lubricants, automotives, and fluid portfolio to strengthen the OEM partnerships and capture market share in EV-ready, lubricants while managing risk from crude oil prices volatility and competitive pressure.

— Sucrit D Patil

Manish is what type of capital allocation and risk management framework are being applied in FY27 to balance dividend payout with funding for R&D in EV compatible lubricants and hedging against forex and crude price volatility, and any sustainable liquidity buffers for working capital expansion?

— Sucrit D Patil

So supply is also a concern or it's just the price which has gone up and availability is not a concern?

— Sudeep Anand

Sir, could you help us understand whether the volume growth that we delivered in this quarter is driven by channel stocking or inventory buildup due to concern around the product availability or any sustainable demand growth that we observed in the industry overall?

— Nilesh Sharma

So it will be difficult to answer how much percentage of premium somebody has, but it varies from category to category, where we have our strengths.

— Manish Gangwal

The challenge right now is to ensure supply security, which is where our focus is.

— Manish Gangwal

If things go well, which today is obviously a challenge to go to 14-16%.

— Ravi Chawla

Q&A — 8 exchanges

My name is Sucrit Patil. I have two questions. The first question is to Mr. Ravi Chawla. What are the strategic levers you are prioritizing in FY2026-27 to expand Gulf Oil Lubricants, automotives, and fluid portfolio to strengthen the OEM partnerships and capture market share in EV-ready, lubricants while managing risk from crude oil prices volatility and competitive pressure. That's my first question. I'll ask my second question after this. Thank you.

Ravi Chawla

So as we've been sharing, our strategy has been to focus on these segments, which you mentioned. Obviously, we've been growing 2x to 3x for many years now. So I think fortifying our strategy here has obviously been part of the journey. And we've been building our brand. We've been building our partnerships with OEMs. We have mentioned more than 50+ OEMs. So I think for us, the strategy has been to focus our teams into each segment separately. And automotive, again, we have good market share in motorcycle and diesel engine oil, if you take the bazaar market. So there, again, looking at 2x to 3x

Yes. So first, I wanted to understand if there is any change in the inauguration or when would the expansion of the plants come into operation for Chennai as well as Silvassa? Second question, of course, I wanted to understand more on if there is a timeline on the data centre liquids that the company is developing? Do we see some further opportunities or how is that playing out?

Manish Gangwal

So I think our expansion at both the plants are on track. The work is progressing well. Obviously, Chennai expansion, as we earlier highlighted, will come on stream first and then Silvassa, which is our second plant, because there is a lot of civil work also, which needs to happen, the work has already started. We earlier guided that the Chennai additional capacity should come into stream by Q3 and Silvassa by Q4. As of today, we believe that we are in a position to meet these timelines. On the second question of data centre cooling, I would request Ravi to please take it. Yes. We have informe

Congratulations on a good set of numbers. So sir, as we know, we import around 50% or more than 50% of our base oil from countries like Korea, Singapore and even Middle East. So are we seeing any disruption in availability or imports of crude oil? And secondly, are we seeing any substantial spike in prices of base oil because of the Middle East crisis? And, have you seen any pass-through of the price hike or higher RM cost during the quarter? That is my first question.

Manish Gangwal

Yes. So we all know that post Middle East crisis, the crude oil, which is our base material for our input like base oils, etc. and crude oil has rallied from nearly $65-$70 in February to nearly $90+ in March. Then as we speak in the current quarter, it has been mostly trending above $100 even touching a peak of $120 at some point in time shortly for a short period. So there is definitely a sharp movement in crude. And our key raw materials, which is base oil additives, packaging, they're all linked to the crude-related market pricing. So base oils obviously have followed the crude, of course,

Congrats for a very good set of numbers. Sir, we have seen a very strong volume growth during the quarter and during the year. So which particular business segment is currently doing pretty well? And how do you see FY27, any upward revision in the growth guidance which we had given it on 2 to 3x of the industry growth, which is around 8% to 9%. And secondly, some update, if you can give on Tirex, what was the performance during the year? And how do we see in FY27-28?

Ravi Chawla

Yes. So on the first part of the question, you spoke about which segments. So actually 14% growth is a very good growth. I would say, to some extent, March end, we did see some demand coming in because of the situation. But overall, I think double-digit growth is what we've done for the year. And we also see that the market will continue to grow subject to, obviously, there is a crisis happening geopolitical crisis, but it looks like the conditions are robust, and agriculture season will come. July is usually a season where monsoons come. But overall, the year remains a good year. And also the

Ravi Chawla

Yes. So in the year, we have done 10.5% growth. So we have seen that our growth has been 2x- 3x. Definitely, March has been a good strong month. But if you look at the Jan and Feb also, we continue to grow double digit. So, I think that has been showing that the demand was there. I think towards the end of March, we would say that obviously, some people are concerned about availability and as I've mentioned, we have more 50+,OEMs if you look at all segments. And they definitely want to make sure that the supply is secured. So I think our relationships with them, even our stocking with the dist

Sir, I wanted to understand that our operating margin is almost half that of Castrol. So what is the reason for this? And at what premium is Castrol selling their products, like-to-like products versus us?

Manish Gangwal

Margin-wise, obviously, we have been able to reduce the gap with the market leader over years. It takes a lot of time and while we don't want to comment on a particular company, but our trajectory has been to keep growing ahead of the market growth and bring that operating leverage also. That is why at EBITDA level, the gap can be reduced by increasing the pricing power, which comes with the effect of increase in brand strength, which takes a longer time and sustained investment into brand, which we have been doing over the years. The second lever is to bring that operating leverage, and that

Congratulations on a good set of numbers. Sir, two questions, basically, first, just want to know what are our base oil inventory level at this point of time? And secondly, I just want to understand, are we running any additional campaign or royalty to increase any sales, how is it? And what expenditure are we expecting? Or what budget we have made for that?

Manish Gangwal

So usually, we have been carrying 45 days of inventory on base oil side, in a normal situation. We have tried to slightly increase that by 10-15 days, to create more supply security. But overall, we are still around, let's say, 45-60 days, depending on which point in time we are talking. So we continue to have a healthy inventory, which we believe should be helpful for us to cater to our customers and our consumers in a timely manner, which is today the biggest anxiety among our customers, OEMs, whether the supply security is ensured by the supplier partner. So we are in a position to handle v

Thank you so much. As I mentioned, we've seen a good year, good volume growth, industry growing and Gulf growing, obviously, very well in terms of overall, Q4 again, giving the highest growth. We've also seen that the sales of new vehicles, which helps us in our OEM business, also augurs well for the industry, has been really fantastic last year. The growth figures, as you all know, 2-wheelers, cars, even EV penetration going up, commercial vehicles, tractors have been really good. Most of them see double-digit growth. And really, the GST also helped there, and that's really good. So we contin

Management

Speaking time

Manish Gangwal

Ravi Chawla

Moderator

Keshav Garg

Nilesh Sharma

Sucrit D Patil

Dhaval Popat

Arya Patel

Sudeep Anand

Hardik Solanki

Opening remarks

Probal Sen

Thank you very much. Good afternoon, ladies and gentlemen. Welcome to Gulf Oil’s Post Q4 FY26 Investor Call to discuss the results and management's view and outlook going forward. The format will be the same. As always, management will deliver their opening remarks, after which we can have an interactive Q&A session. Without further ado, I'll hand over to the senior management of the company who are with us - Mr. Ravi Chawla, the Managing Director and CEO; and Mr. Manish Gangwal, the Whole-Time Director and the CFO of the company. Over to you, sir.

Ravi Chawla

Thank you. Good day, good afternoon, everybody. Welcome to the Q4 call and really happy all of you are joining us. Extremely delighted to share with you that Q4 has been a record quarter for us in terms of our volumes, revenues and EBITDA. We have hit the quarterly all-time highs. Of course, we know that March end is usually a very good quarter for us, but we've continued to really grow as we've always been growing 2x to 3x. But this quarter, we can highlight that we've done a 14% growth, which is by far in volume, one of the highest quarters for many years now. So that's been a really big achievement for the team. The quarter overall has been a strong one. As I mentioned to you, we've done 45,000 KL in our lubricant volumes. It has also been supported by good customer demand and of course, good business agility by all the teams. As you know, a challenging quarter, as always, also March, we saw challenges coming due to the Gulf War, and we've also done well to make sure that we are wel

Manish Gangwal

Thank you, Ravi. Good afternoon, everyone. So as Ravi highlighted, we had a very good quarter on all fronts, be it Volume, Revenue, EBITDA. For the quarter, we delivered for the first time 45,000 KL volume, which is the highest ever for any quarter ever in the history of the company and growing at nearly 14% in terms of core lubricant volumes. And AdBlue, we also recorded a very good 40,000 KL volume, which again is the highest, and that also delivered an 8% growth on volume side. Overall revenue following the volume growth is nearly 14%, which is also one of the recent highs. And EBITDA also despite all the headwinds in terms of rupee depreciation and the Middle East crisis is starting March, we have been able to deliver EBITDA growth of 8.5% and INR 135 crores EBITDA for the quarter is again the highest ever EBITDA, led by volume delivery. So overall, a very good quarter on all fronts. And for the full year also, we have our total lubricant volumes are 1,68,000 KL which is double dig

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