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    Gulf Oil Lubric.

    GULFOILLUB
    Oil, Gas & Consumable Fuels·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

    5

    • 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

    3

    • 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

    Metrics

    6

    Periods

    2

    Q3 FY26

    3
    • Lubricants Volume
      41,500 KL
    • Lubricants Volume Growth
      8%
    • EBITDA Margin
      13%
      QoQ+0.7%

    9M

    3
    • FY26 Revenue
      ₹2,951 Cr
      YoY+11.8%
    • FY26 Lubricants Volume
      1,23,000 KL
    • FY26 Lubricants Volume Growth
      9.3%

    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
    List

    Capital allocation

    4
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Net ₹0 crores

    Dividend

    ₹21/share (interim)

    M&A

    Tirex

    acquisition · integrated

    Guidance & targets

    7
    CategoryTargetPriority
    Volume
    Lubricant volume growth
    2 to 3x market growth
    		High
    Margin
    EBITDA margin band
    12% to 14%
    		High
    Margin
    Medium term EBITDA margin
    14% to 16%
    		Medium
    Market Growth
    Lubricants industry market growth
    3% to 4%
    		High
    Revenue
    Tirex revenue
    above INR 100 crores
    		High
    Revenue
    Tirex top line
    INR 300 crores to INR 400 crores
    		High
    Profitability
    Tirex EBITDA
    positive
    		High

    Chennai plant commercial operations

    Q1 next financial year
    CurrentUnder construction
    TargetCommercial 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.

    How to verify

    capital_allocation.capex.purposes

    Risks & concerns

    3
    RiskSeverity

    Rupee depreciation and volatility

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

    medium

    Competitive intensity in the lubricants market

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

    medium

    Base oil price divergence from crude oil

    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

    medium

    Q&A highlights

    8

    “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

    2 min read6 chapters

    Detailed Narrative

    01

    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.

    02

    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%.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.