Gulf Oil Lubricants India Limited — Q3 FY26 earnings call

Call held 13 Feb 2026

Management summary

Gulf Oil Lubricants reported a strong Q3 FY26 with record volumes of 41,500 KL and 8% lubricant volume growth, outperforming the industry. The company achieved its highest quarterly revenue and EBITDA, with margins expanding to over 13%. The EV subsidiary, Tirex, continued its rapid growth, targeting over INR 100 crores revenue for FY26. While some segments like exports and marine were slower, overall performance was robust, supported by strategic focus on B2C, B2B, and OEM partnerships.

Highlights

  • Q3 FY26 quarterly volumes reached an all-time high of 41,500 KL, driven by strong demand post-monsoons and festivities.

  • Lubricants volume grew by 8% in Q3 FY26, outperforming the industry by 2x, with 9M FY26 growth at 9.3%.

  • Achieved highest quarterly revenue and EBITDA, with EBITDA margins expanding by 67 bps sequentially to over 13%.

  • B2C segments (PCMO, Agriculture) and B2B segments (Industrial, Infrastructure) all saw double-digit growth.

  • Tirex, the EV subsidiary, showed significant growth of 83% in Q3 FY26 and 78% for 9M FY26, with a target of over INR 100 crores revenue for FY26 with positive EBITDA.

Concerns

  • Exports and marine segments experienced slightly slower growth in Q3 FY26.

  • Commercial Vehicle Oil (CVO) segment grew in single digits, although it maintains a high market share.

  • Base oil prices did not fully reflect the fall in Brent crude prices, indicating short-term demand-supply dynamics impacting input costs.

Key financials

2 periods

Q3 FY26

  • Lubricants Volume
    41,500 KL
  • Lubricants Volume Growth
    8%
  • EBITDA Margin
    13%
    QoQ +0.67%

9M

  • FY26 Revenue
    ₹2,951 Cr
    YoY +11.8%
  • FY26 Lubricants Volume
    1,23,000 KL
  • FY26 Lubricants Volume Growth
    9.3%

What they filed

Q1 FY27: revenue up 32.5%, net profit up 32.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue849 905 915 996 957 +13%998 +10%1,040 +14%1,320 +33%
EBITDA107 122 124 127 118 +10%130 +7%135 +9%170 +34%
Net profit84 98 92 97 87 +4%77 −21%90 −2%128 +32%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Tirex (EV Subsidiary)
    83% Q3 FY26 Revenue Growth78% 9M FY26 Revenue Growth
  • AdBlue
    1,11,000 KL 9M FY26 Volume8% 9M FY26 Volume Growth

Capital allocation

high confidence
  • Capex Capex disclosed
    • Expansion of Silvassa and Chennai capacities ₹55 Cr
    So Mr. Dhaval, basically, we have announced a INR55 crores of CapEx for expansion of our Silvassa and Chennai capacities.
  • Debt Net ₹0 Cr
    And overall, we continue to remain net debt free.
  • Dividend ₹21/share (interim)
    And also, as we have announced, the Board has been happy to increase the interim dividend to INR21 per share. That's 1,050% on the face value of INR 2.
  • M&A Tirex Acquisition · Integrated

    Strategic investment in EV space

    Stake increased from 51% to 65%.

    So with that thought process, we have been making this as a very strong pillar. When we acquired Tirex 51% stake, which we have now increased during the quarter to 65% in the December quarter.

Guidance & targets

Volume

  • Lubricant volume growth Volume · ongoing · High confidence 2 to 3x market growth
    I think our guidance is 2 to 3x the volume growth, which continues.

    — Manish Gangwal

Margin

  • EBITDA margin band Margin · ongoing · High confidence 12% to 14%
    And we will currently be only talking about a 12% to 14% margin band, which we have been always guiding about.

    — Manish Gangwal

  • Medium term EBITDA margin Margin · medium term · Medium confidence 14% to 16%
    And eventually, we have been highlighting in the past that we have to move to the next trajectory of 14% to 16% over medium term.

    — Manish Gangwal

Market Growth

  • Lubricants industry market growth Market Growth · next decade or so · High confidence 3% to 4%
    So normally, we take 3%, 4% because that's how we are seeing the market in the next decade or so.

    — Ravi Chawla

Revenue

  • Tirex revenue Revenue · this year (FY26) · High confidence above INR 100 crores
    But overall, we are looking definitely to close above INR100 crores for sure for this business in this year with a positive EBITDA.

    — Manish Gangwal

  • Tirex top line Revenue · next 3 to 4 years · High confidence INR 300 crores to INR 400 crores
    Our first aim is to have a INR300 crores to INR400 crores top line from this business in the next 3 years to 4 years' time, and then we'll build on that.

    — Manish Gangwal

Market context

  • Tirex EBITDA Profitability · this year (FY26) · High confidence positive
    But overall, we are looking definitely to close above INR100 crores for sure for this business in this year with a positive EBITDA.

    — Manish Gangwal

What to watch in Q4 FY26

Chennai plant commercial operations

Q1 next financial year
Current Under construction
Target Commercial operations

Why it matters

Commissioning of the Chennai plant will contribute to future volume growth and operational efficiency, supporting the company's expansion strategy.

It's going to take maybe in Chennai, it will be coming sooner, but in quarter 1 of next financial year.

Risks & concerns

  • Rupee depreciation and volatility

    medium

    Rupee depreciation caused cost pressures, and its erratic behavior continues to be a concern, requiring timely pricing actions.

    Management acknowledged

  • Competitive intensity in the lubricants market

    medium

    The market has 16-17 players, and competitive intensity is always present, requiring continuous strategic adjustments.

    Management acknowledged

  • Base oil price divergence from crude oil

    medium

    Despite a fall in Brent crude, base oil prices have not seen a similar decline due to short-term demand-supply factors and refiner shutdowns, impacting input costs.

    Analyst acknowledged

Q&A highlights

8 direct
Segmental growth vs. overall lubricant sales growth Direct
Basically, some of our other segments, exports have been slightly slower and marine segment has been slightly slower. But when it comes to other domestic segments, all have done very well. CVO is, of course, single-digit, but many of them are at a good double-digit growth.

Clarifies the specific segments that contributed to the overall 8% lubricant volume growth, highlighting areas of slower performance (exports, marine) and strong performance (B2C, B2B).

Asked by Sabri Hazarika

Recurring impact of new labor code provisioning Direct
The recurring impact will not be very significant as we understand from the current provisioning because it's a company which was many of the employees are more than 15, 20 years with the company, and we started our plant in Silvassa way back in 1993. So the longevity in Gulf is a key thing we are proud of. That leads to accumulated provisioning, but recurring impact, there will be marginal impact, but not significant.

Addresses a one-time exceptional charge of INR 226 million related to the new labor code, clarifying that its recurring impact will be marginal.

Asked by Probal Sen

Plant expansion timelines and impact on volumes/margins Direct
It's going to take maybe in Chennai, it will be coming sooner, but in quarter 1 of next financial year. And Silvassa will will be ready by the end of third quarter. ... So more than cost, I think it will bring operational efficiencies and will make us ready for future.

Provides specific timelines for the INR 55 crores capacity expansion projects in Chennai and Silvassa, emphasizing operational efficiencies and future readiness over significant cost reduction.

Asked by Dhaval Popat

M&A strategy, particularly in EV space Direct
We have been vocal about it that we want to do more acquisitions in the EV space. Also in the lubricant space itself, some of the niche products, including in industrials, other categories. So as we speak, we keep evaluating many proposals.

Confirms the company's active pursuit of M&A opportunities for strategic growth, with a focus on the EV sector and niche lubricant products.

Asked by Dhaval Popat

Data center cooling segment opportunity Direct
So there's a lot of basically noise around data centers in the country. In fact, the recent budget also indicated a tax holiday, and there are a number of announcements which are coming in from hyperscalers and other companies as well for setting up data centers. ... So we are getting ourselves ready to get our product validated and working with some of these hardware and there are also some organizations which do the testing.

Highlights a potential new growth avenue in data center cooling, with the company developing and validating products for this emerging market.

Asked by Nitin Tiwari

Competitive intensity and market growth trajectory Direct
Competitive intensity has always been there in this market. As you know, there are 16, 17 players... So I think that is something which continues to be there. We are also increasing capacity... So I think each brand has its own position. We are very happy to share with you that today, Gulf is the top 2 brand in certain segments, top 3 brand overall in all the segments.

Addresses concerns about rising competitive intensity by stating that competition is a constant in the market and Gulf Oil maintains a strong position (top 2/3 brand in segments) through its brand and OEM partnerships.

Asked by Kirtan Mehta

EV segment (Tirex) future path and financial targets Direct
Our first aim is to have a INR300 crores to INR400 crores top line from this business in the next 3 years to 4 years' time, and then we'll build on that. ... But overall, we are looking definitely to close above INR100 crores for sure for this business in this year with a positive EBITDA.

Provides clear financial targets for the EV charging business (Tirex), aiming for over INR 100 crores revenue with positive EBITDA in FY26 and INR 300-400 crores top line in the next 3-4 years.

Asked by Bharat Gulati

Base oil prices vs. Brent crude and expectations Direct
While there is a long-term correlation between the crude oil prices and the base oil prices... in a short to medium term, demand supply for each grade of base oil also plays a role. And this time around, what we have seen also... the fall of crude from $75 to $80 or around $75 to $65 not translated into the similar kind of fall on base oil side...

Explains the short-term divergence between crude oil and base oil price movements, attributing it to specific demand-supply dynamics and refiner maintenance shutdowns, which impacts the company's input costs.

Asked by Arya Patel

2 min read 6 chapters

Detailed narrative

Strong Q3 FY26 Performance and Volume Growth

Gulf Oil Lubricants reported an all-time high quarterly volume of 41,500 KL in Q3 FY26, driven by strong demand post-monsoons and festivities. The company's lubricants volume grew by 8% in the quarter, outperforming the industry by 2x. For the nine months ended December 31, 2025, lubricant volume grew 9.3% to 123,000 KL, contributing to a revenue of INR 2,951 crores, an 11.8% increase.

EBITDA Margin Expansion and Cost Management

Despite cost pressures, mainly from rupee depreciation, Gulf Oil Lubricants expanded its EBITDA margins sequentially by nearly 67 basis points, reaching over 13% in Q3 FY26. This improvement was attributed to effective cost management and timely, selective price actions. The company aims to maintain its EBITDA margin within the 12-14% band, with a medium-term target of 14-16%.

Diversified Segmental Growth

Growth was broad-based across various segments. B2C segments, particularly passenger car motor oil (PCMO) and agriculture, showed good double-digit growth. B2B segments, including industrial and infrastructure, also recorded double-digit growth. OEM franchisee workshops, especially in PCMO and agri segments (e.g., Mahindra, Swaraj), demonstrated high double-digit growth. However, exports and marine segments experienced slightly slower growth, and the Commercial Vehicle Oil (CVO) segment grew in single digits.

EV Business (Tirex) Accelerates

The EV subsidiary, Tirex, continued its strong performance, with revenue growing 83% in Q3 FY26 and 78% for the nine-month period. Tirex is actively acquiring new marquee customers like Mahindra, MG, and VinFast, and is on track to close FY26 with over INR 100 crores in revenue and positive EBITDA. The company aims for a top line of INR 300-400 crores from the EV business in the next 3-4 years, leveraging its strong brand, OEM relationships, and distribution network.

Capital Allocation and Strategic Initiatives

Gulf Oil Lubricants announced a CapEx of INR 55 crores for expanding its Silvassa and Chennai capacities, with Chennai expected to be ready by Q1 next financial year and Silvassa by the end of Q3 next financial year. The company remains net debt-free and declared an interim dividend of INR 21 per share. Management is actively evaluating M&A opportunities in the EV space and niche lubricant products to further its growth strategy.

Market Dynamics and Competitive Landscape

The lubricants market is characterized by competitive intensity with 16-17 players, but Gulf Oil maintains a strong position, being a top 2/3 brand in various segments. The overall market growth rate is projected at 3-4% for the next decade. Management noted that base oil prices have not fully mirrored the fall in Brent crude, attributing this to short-term demand-supply dynamics and refiner maintenance shutdowns, which impacts input costs.

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