Gulf Oil Lubric.

Gulf Oil Lubricants achieved its highest-ever quarterly revenue of INR 900 crore, marking an 11% year-on-year growth. This was complemented by a record EBITDA of INR 122 crore, resulting in an EBITDA margin of 13.5%, a sequential improvement of 90 basis points. Core lubricants volumes also reached a new high of 38,500 kl, growing 7% year-on-year, demonstrating resilience despite macroeconomic headwinds.

Growth was broad-based, with Motorcycle Oil (MCO), B2B, and Industrial segments all reporting double-digit growth. The premium range of products saw growth at double the normal rate. Diesel Engine Oil (DEO) contributed 39% to the mix, while personal mobility increased to 23%. AdBlue volumes, which were soft in Q2, picked up significantly in Q3, and the company aims for 10-15% growth in this segment over the next 2-3 years.

The company's new energy ventures showed promising progress. Tirex, the DC fast charger subsidiary (51% stake), achieved a 9-month top line of INR 40 crore, nearly tripling last year's figure, with a target to double revenues annually. The Battery segment reported INR 21 crore in Q3 FY25 revenue and turned EBITDA positive for the current year, with ongoing localization efforts. The EV fluids segment, though small, has over 10 partnerships, with a focus on securing more OEM contracts.

Gulf Oil strengthened its market reach through strategic partnerships, expanding its lubricant and AdBlue sales to Nayara's network of 6,000 outlets. The exclusive partnership with Piaggio India for the 2-wheeler segment was renewed until 2032, and for the Commercial Vehicle segment until 2030. A 360-degree mega brand campaign, 'The Unstoppables,' featuring three brand ambassadors, was successfully launched to enhance consumer engagement and brand affinity.

The company maintained a strong financial position, remaining debt-free with a net cash position exceeding INR 450 crore at the end of December. Annual capital expenditure is projected to be in the range of INR 30-40 crore, primarily for infrastructure additions and potential plant expansion at Silvassa, where current capacity is 90,000 kl. The company also declared an interim dividend of INR 20 per share, reflecting a 1000% payout on the face value.

Management is confident in maintaining an EBITDA margin band of 12-14% for Q4 FY25 and Q1 FY26. The long-term aspiration is to achieve 14-16% EBITDA margins over the next 2-3 years through premiumization efforts and operating leverage. While rupee depreciation impacts landed costs of imported base oil, crude oil stability at $75-$80 per barrel is expected to keep input costs stable, with pricing actions and scheme rationalization used for margin management.