GULFOILLUB - Gulf Oil Lubric.

📊 NSE: GULFOILLUB 🏢 Chemicals 📅 Last Updated: 12/13/2025 22:43

💰 Financial Performance

Revenue Growth by Segment

The company achieved a 12.6% revenue growth in Q2 and H1 FY26. Lubricants volume grew by 9.5% in Q2 FY26 (40,500 KL) and 10% in H1 FY26. AdBlue volumes grew by 24% in Q2 FY26 (36,000 KL) and 10% in H1 FY26. The Agri segment recorded double-digit growth, while the OEM segment (excluding factory fill) saw 'confident growth'.

Geographic Revenue Split

Not disclosed in available documents, though the company operates across a domestic network in India and has a global presence through its parent, Gulf Oil International, in over 100 countries.

Profitability Margins

For FY 2024-25, PAT was INR 362.25 Cr, a 17.5% increase YoY. The company maintains a long-term margin guidance band of 12% to 14%. Profitability is driven by premiumization (Syntrac) and timely price revisions to offset base oil costs.

EBITDA Margin

EBITDA margin was 12.4% in Q2 FY26, with EBITDA growing nearly 11% YoY despite input cost pressures. The company aims for higher value growth than volume growth to drive improved profitability.

Capital Expenditure

The company generated INR 423.26 Cr in cash from operations in FY25 (up from INR 348.14 Cr in FY24). Net cash used in investing activities was INR 49.40 Cr in FY25, while financing activities used INR 152.52 Cr.

Credit Rating & Borrowing

ICRA reaffirmed [ICRA]AA (Stable) for long-term fund-based cash credit (INR 92 Cr) and [ICRA]A1+ for short-term limits (INR 540 Cr). Total rated amount is INR 632 Cr. Loans are taken at market rates of interest.

⚙️ Operational Drivers

Raw Materials

Base oil (primary raw material) and crude oil (indirect driver). Base oil prices are currently seeing a downward trend as of November 2025.

Import Sources

Not specifically disclosed, but base oil prices are linked to global crude movements and forex volatility, suggesting international sourcing.

Capacity Expansion

Current lubricant sales volume is 40,500 KL per quarter (Q2 FY26). The company is targeting volume growth at 2-3x the industry average (industry growing at 3-4%).

Raw Material Costs

Raw material costs are highly sensitive to base oil price movements and crude oil. The company uses timely price revisions to mitigate these impacts. Operating margins moderated to 11.4% in FY23 from 13.0% in FY22 due to raw material price increases.

Manufacturing Efficiency

The company achieved its highest-ever quarterly volume in Q2 FY26 despite it being a monsoon quarter. It focuses on cost optimization and efficient working capital management.

Logistics & Distribution

The company utilizes a wide distribution network and strong marketing efforts to improve market share in the domestic lubricants industry.

📈 Strategic Growth

Expected Growth Rate

6-12%

Growth Strategy

The 'Unlock 2.0' strategy focuses on growing 2-3x the industry volume. Key pillars include premiumization (Syntrac), expanding in low-market-share segments like Industrial and Passenger Car Motor Oil (PCMO), and capitalizing on AdBlue growth (10-15% expected) due to BS6 norms. Growth is also pursued through M&A, such as increasing the stake in Tirex to 65% to enter the EV charging space.

Products & Services

Automotive and industrial lubricants, Syntrac motorcycle oil, high-end motor oil, AdBlue (diesel exhaust fluid), EV fluids, and EV charging stations (via Tirex).

Brand Portfolio

Gulf, Syntrac, AdBlue, Tirex.

New Products/Services

Launched Syntrac for motorcycles and high-end motor oil. EV fluids and EV charging infrastructure (Tirex) are key future growth areas.

Market Expansion

Focusing on segments with lower market share like Industrial and PCMO. Also exploring global opportunities in the EV space and core lubricant acquisitions.

Market Share & Ranking

GOLIL is one of the leading players in the Indian lubricant industry, consistently gaining market share by growing 2-3x the industry rate.

Strategic Alliances

Strategic tie-ups with OEMs for factory fills and franchisee workshops for maintenance contracts. Part of the Hinduja Group.

🌍 External Factors

Industry Trends

Industry volume growth is 3-4% with value growth at 6-8% (FY23-33 CAGR). Shift toward BS6 norms is driving 10-15% volume growth in AdBlue. The industry is evolving toward EV fluids and digital transformation.

Competitive Landscape

High competition in the domestic lubricant industry; GOLIL competes by leveraging brand strength and marketing campaigns.

Competitive Moat

Durable advantages include the well-recognized 'Gulf' brand, strong parentage of the Hinduja Group, a wide distribution network, and a consistent track record of outperforming industry growth (2-3x).

Macro Economic Sensitivity

Highly sensitive to automotive sector demand and GDP growth. GST reforms are expected to boost consumption and automotive demand.

Consumer Behavior

Shift toward premium synthetic lubricants and increased demand for AdBlue due to stricter emission norms.

Geopolitical Risks

Exposure to global crude oil price volatility and forex fluctuations (USD/INR).

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to stricter emission norms (BS6) and governmental regulations regarding the Indian economy and tax legislation.

Environmental Compliance

Compliance with BS6 emission norms is a major driver for the AdBlue segment. The company also focuses on ESG as a pillar of excellence.

Taxation Policy Impact

Recent GST reforms are cited as a positive driver for boosting consumption in the automotive sector.

⚠️ Risk Analysis

Key Uncertainties

Volatility in base oil prices and crude oil can impact margins. Forex volatility (INR depreciation) poses a risk to PAT. ROCE dropping below 23% is a specific credit monitorable.