Gandhar Oil Strikes Gold with ₹246 Cr Deal for BHEL Transformer Oil Supply

In a significant boost to its industrial portfolio, Gandhar Oil Refinery (India) Ltd. has secured a major contract from Bharat Heavy Electricals Limited (BHEL) valued at ₹246 million (₹24.6 crore). The two-year agreement, awarded by BHEL’s Jhansi unit, is for the supply of transformer oil, a critical component in India’s power transmission infrastructure.

 

This strategic win not only strengthens Gandhar Oil’s position in the energy sector but also reflects growing confidence in its product quality, reliability, and ability to meet the demands of large-scale public sector undertakings.

 

What the Contract Covers

The contract is structured as a Rate Contract/Framework Agreement, meaning Gandhar Oil will supply transformer oil to BHEL on a firm pricing basis over the next two years. Transformer oil plays a vital role in insulating and cooling transformers, which are essential for the safe and efficient transmission of electricity across India’s grid.

 

The deal is domestic in nature and does not involve any related-party transactions, as confirmed by Gandhar Oil in its regulatory disclosure. The company emphasized that the order was awarded on an arm’s length basis, in compliance with SEBI’s Listing Obligations and Disclosure Requirements (LODR) regulations.

 

Strategic Importance for Gandhar Oil

This contract win is a testament to Gandhar Oil’s growing footprint in the industrial lubricants and specialty oils segment. The company has long been a trusted supplier of transformer oil, white oils, petroleum jellies, and rubber process oils to both domestic and international clients.

 

Securing a deal with BHEL—India’s largest power equipment manufacturer—is a strong endorsement of Gandhar’s manufacturing capabilities and product standards. It also adds meaningful visibility to the company’s order book and revenue pipeline, especially in a sector that is poised for expansion amid India’s infrastructure push.

 

According to industry analysts, the transformer oil market in India is expected to grow at a CAGR of 6–8% over the next five years, driven by rising investments in power generation and transmission. Gandhar Oil’s alignment with this trend positions it well for future growth.

 

Market Reaction and Business Outlook

Following the announcement, Gandhar Oil’s stock saw a modest uptick, trading up by 3.1% at ₹155, reflecting investor optimism about the company’s expanding order book and strategic wins.

 

The company has been actively pursuing contracts in the energy and industrial sectors, and this BHEL deal adds to a growing list of partnerships with marquee clients. Gandhar’s ability to secure long-term agreements with public sector entities also enhances its credibility and financial stability.

 

Looking ahead, the company is expected to focus on:

BHEL’s Role and Sectoral Impact

BHEL’s Jhansi unit is a key player in manufacturing transformers and other heavy electrical equipment. The partnership with Gandhar Oil ensures a steady supply of high-grade transformer oil, which is essential for maintaining operational efficiency and safety standards in power systems.

 

This collaboration also aligns with India’s broader energy goals, including grid modernization, renewable integration, and rural electrification. As BHEL continues to execute large-scale projects across the country, reliable suppliers like Gandhar Oil will play a crucial role in supporting these initiatives.

 

A Win for Indian Manufacturing

The Gandhar-BHEL contract is more than just a business transaction—it’s a reflection of India’s growing self-reliance in industrial manufacturing and energy infrastructure. It highlights how domestic companies are stepping up to meet the needs of national development, while maintaining global standards of quality and performance.

 

With this deal, Gandhar Oil reinforces its position as a key contributor to India’s industrial backbone, and sets the stage for further collaborations in the years ahead.

 

Sources: Moneycontrol, MarketSetup