0 months ago
Gulf Oil Q1 profit up 32%; MD outlines FY27 roadmap
Gulf Oil is a company that makes lubricants, which are special oils that keep car engines and machines working smoothly.
In the first three months of its new financial year, the company made a lot more money than it did the year before.
It sold much more product than most other companies in its industry.
During this time, there were problems getting some of the ingredients for the oil because of tensions in a region called West Asia.
Ships had trouble moving through an important water route called the Strait of Hormuz.
Gulf Oil worked hard to find supplies and keep delivering oil to its customers without stopping.
To pay for higher material costs, it raised some of its prices.
The company is now building bigger factories so it can make about 70 percent more products.
It also makes chargers for electric buses and trucks through a company called TAREX, which is already earning good money.
Gulf Oil hopes the charging business will grow much bigger in the next few years.
Gulf Oil's standalone net profit rose 31.9% year-on-year to Rs 127.5 crore in Q1 FY27, while revenue increased 30.6% to Rs 1,327 crore.
Volume growth of 17% far outpaced the industry's estimated 3-4% expansion, driven by automotive, agriculture and industrial lubricant demand.
Supply chain disruptions from West Asia geopolitical tensions and the Strait of Hormuz raised base oil costs, which Gulf Oil offset with multiple price hikes while keeping EBITDA margins around 13%.
Gulf Oil is expanding capacity at its Silvassa and Chennai plants by nearly 70%, with completion expected in the third and fourth quarters of FY27.
EV charging subsidiary TAREX generated around Rs 100 crore in revenue last year, has turned profitable, and could reach Rs 300-400 crore in revenue over three to four years.
Gulf Oil is exploring premium synthetic lubricants, industrial products and liquid cooling solutions for data centres, plus acquisitions in mobility and industrial technologies.
- Who
- Gulf Oil, led by Managing Director Ravi Chawla
- What
- Reported strong Q1 FY27 financial results and outlined its growth roadmap, including capacity expansion, EV charging growth and new business opportunities
- Where
- India, including Gulf Oil's Silvassa and Chennai plants, with supply chains affected by West Asia and the Strait of Hormuz
- When
- First quarter of FY27
- Why
- Demand across automotive, agriculture and industrial lubricant segments drove 17% volume growth despite supply chain disruptions and higher raw material costs
Key facts
- Company
- Gulf Oil
- Standalone Net Profit (Q1 FY27)
- Rs 127.5 crore, up 31.9% year-on-year
- Revenue from Operations
- Rs 1,327 crore, up 30.6% year-on-year
- EBITDA
- Rs 166 crore, up nearly 30%; margin around 13%
- Volume Growth
- 17% versus industry's estimated 3-4% expansion
- Capacity Expansion
- Nearly 70% increase at Silvassa and Chennai plants, completing in Q3-Q4 FY27
- TAREX Revenue
- Around Rs 100 crore last year; target of Rs 300-400 crore in 3-4 years
- EBITDA Margin Guidance
- 12-14% over the medium term
Quotes
Ravi Chawla
Chief Executive of Gulf Oil
“"As a leading private‑sector lubricant player, supply reliability became a key differentiator during the quarter," he said.”
businesstoday.in









