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Specialty Oil Maker Delivers Resilient Growth Amid Margin Pressures and Sectoral Headwinds
Gandhar Oil Refinery (India) Ltd has reported its consolidated financial results for the quarter ended June 2025, showcasing a steady performance in a challenging macro environment. The company posted revenue from operations of ₹9.03 billion and a net profit of ₹262.3 million, driven by robust demand across its specialty oil segments and disciplined cost management.
Key Highlights from Q1 FY26
Consolidated revenue from operations stood at ₹9.03 billion, reflecting a year-on-year growth of 9.6 percent.
Net profit reached ₹262.3 million, supported by operational efficiencies and stable product pricing.
EBITDA margin improved to 6.06 percent, up from 3.58 percent in the previous quarter.
The company maintained a healthy balance sheet with low leverage and strong cash flows.
Segment-Wise Performance Overview
White Oils and Specialty Lubricants Gandhar’s flagship brand Divyol continued to lead the market in white oils, transformer oils, and rubber processing oils. Demand from pharmaceutical, personal care, and industrial sectors remained strong, contributing significantly to topline growth.
Automotive and Industrial Oils The automotive segment saw moderate growth, with increased sales of engine oils and greases. Industrial lubricants also performed well, particularly in manufacturing hubs across western and southern India.
Export Business Export revenues rose, driven by increased shipments to the Middle East, Southeast Asia, and Africa. The company’s EU-compliant formulations and strategic partnerships supported its global expansion.
Financial Metrics and Operational Indicators
Earnings per share (EPS): ₹3.15
Operating margin: 6.06 percent
Net profit margin: 2.91 percent
Return on equity (ROE): 17.26 percent
Debt-to-equity ratio: 0.17, indicating strong financial discipline
Gandhar Oil’s operating profit for the quarter stood at ₹540 million, with depreciation and interest expenses well contained. The company generated ₹442 million in free cash flow, reflecting efficient working capital management and prudent capital allocation.
Strategic Initiatives and Future Outlook
Gandhar is expanding its manufacturing capacity in Silvassa and Taloja to meet rising demand for specialty oils.
The company is investing in automation and digital tools to enhance production efficiency and reduce turnaround times.
Sustainability initiatives include the use of recycled packaging, energy-efficient boilers, and waste oil recovery systems.
R&D efforts are focused on developing bio-based lubricants and low-viscosity oils for emerging applications.
Management remains cautiously optimistic for FY26, citing stable demand, favorable input costs, and continued export momentum. The company aims to strengthen its position in high-margin segments and explore new markets through strategic alliances.
Market Sentiment and Stock Performance
Gandhar’s stock traded around ₹166 as of August 6, 2025, with a market capitalization of ₹16.26 billion.
The stock has gained 12.4 percent over the past month and 28.7 percent over the last quarter.
Analysts view Gandhar as a stable mid-cap player with strong fundamentals and long-term growth potential.
Conclusion
Gandhar Oil Refinery’s Q1 FY26 results reflect its ability to deliver consistent performance amid sectoral challenges. With ₹9.03 billion in revenue and ₹262.3 million in net profit, the company continues to build on its legacy of innovation, quality, and customer trust. As Gandhar deepens its footprint in specialty oils and expands globally, it remains a key player in India’s fast-evolving lubricants and industrial fluids market.
Sources: Economic Times, Gandhar Oil Investor Relations
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