Gulf Oil Lubricants India Limited (NSE: GULFOILLUB, BSE: 538567), part of the Hinduja Group and a leading player in the Indian lubricants market, has delivered its highest-ever quarterly performance in volume, revenue, and EBITDA for the first quarter of FY26. The company posted consolidated revenue from operations of ₹1,016.45 crore for the three months ended 30 June 2025, crossing the ₹1,000 crore mark for the first time, driven by broad-based double-digit growth that significantly outpaced the industry average.
How did Gulf Oil Lubricants’ Q1 FY26 performance manage to exceed three times the industry growth rate?
According to the company, total volumes grew by 11% year-on-year in Q1 FY26—more than triple the broader market’s growth rate. Gains were recorded across nearly all categories, with the Motorcycle Oil (MCO) segment in the B2C division leading performance. The MCO range, particularly the Gulf Pride line, benefited from a recent relaunch featuring upgraded API-SP specifications, new packaging, and intensified on-ground marketing activations. The relaunch messaging emphasised a 10,000-kilometre drain interval and 40% enhanced engine protection, resonating strongly with customers.
OEM factory fill volumes remained flat due to subdued new vehicle sales, but OEM franchise workshops (FWS) registered high double-digit growth across categories, especially in the agriculture equipment segment. In B2B industrial lubricants, the company achieved strong double-digit growth with new customer acquisitions in metals and infrastructure driving volumes.
The company’s EV charger subsidiary, Tirex, posted standout results, with Q1 revenue rising over 163% to ₹24 crore. Growth came from both existing customers scaling up deployments and new marquee wins, reinforcing Gulf Oil Lubricants’ ambition to build a meaningful footprint in the EV infrastructure segment alongside its core lubricants business.
What do the Q1 FY26 financial results reveal about revenue, profitability, and margins?
On a standalone basis, revenue from operations increased 12.57% year-on-year to ₹996.36 crore, up from ₹885.07 crore in Q1 FY25. Standalone profit after tax (PAT) rose 9.81% to ₹96.66 crore, while EBITDA increased 8.89% to ₹126.58 crore. EBITDA margins were 12.70%, down 43 basis points from the previous year due to sustained investments in brand-building and long-term initiatives.
On a consolidated basis—which includes Tirex—revenue rose 13.69% year-on-year to ₹1,016.45 crore, and PAT grew 12.90% to ₹95.17 crore. Consolidated EBITDA stood at ₹127.39 crore, up 12.29%, with margins at 12.53%, down slightly by 16 basis points.
Management highlighted that gross margins improved and operating profits rose in line with expectations, with the margin range remaining within the company’s guided 12–14% band despite macroeconomic volatility and competitive pricing pressures.
How does Gulf Oil Lubricants plan to scale operations with its ₹55 crore capacity expansion programme?
The board has approved a ₹55 crore capital expenditure programme to increase total manufacturing capacity by 70% to 240 million litres over the next two years. At the Silvassa plant, capacity will rise from 90 million litres to 140 million litres, supported by land acquired in the last two years. The Chennai facility will double its output from 50 million litres to 100 million litres within the existing site.
Management described the expansion as a strategic move to sustain Gulf Oil Lubricants’ stated objective of growing volumes at two to three times the industry rate. In FY25, the company delivered total volumes of 152 million litres, growing in the high single digits; with Q1 FY26 showing double-digit growth, additional capacity is seen as essential to maintaining momentum.
Which marketing, product, and partnership initiatives contributed to the Q1 performance?
The company launched three OEM-focused products during the quarter, including Gulf VA Superbike Fully Synthetic Engine Oil for Aprilia and Gulf Sure Nxt BS-III for Piaggio commercial vehicles. Gulf Oil Lubricants also received a Gold award for agility from Ashok Leyland.
Marketing activity centred on expanding the Gulf Pride range’s reach in the MCO category through below-the-line events and activations across India. The company also leveraged its 14-year partnership with the Chennai Super Kings (CSK) IPL team through meet-and-greet events, as well as hosting the Gulf Partners League featuring MS Dhoni, Devon Conway, and Ravichandran Ashwin. These initiatives aimed to deepen consumer engagement and reinforce the brand’s association with high-performance partnerships.
B2C secondary sales hit record levels in rural and agricultural markets, driven by targeted activations and product promotions. In B2B, new industrial and infrastructure customers contributed meaningfully to growth, complementing gains in core automotive lubricant segments.
How is Gulf Oil Lubricants integrating sustainability and innovation into its long-term growth strategy?
Sustainability milestones included the Silvassa plant achieving IGBC Platinum Certification, underscoring Gulf Oil Lubricants’ commitment to environmentally responsible operations. Both the Chennai and Silvassa facilities are now operating rooftop solar installations at full capacity, contributing to reduced operational emissions.
The company also achieved certification for compliance with post-consumer recycled (PCR) plastic management under the ISO 14021 Type II Environmental Declaration standard. These achievements support its positioning as a sustainability-focused manufacturer within the lubricants and mobility solutions industry.
In e-mobility, Tirex began expanding into ultra-fast DC chargers, targeting a broader customer base and reinforcing its technology-driven market leadership in EV infrastructure. This move complements the company’s investments in Indra Technologies (UK-based slow AC chargers) and the Electreefi EV SaaS platform, reflecting a multi-segment approach to future mobility.
What is the current market sentiment toward Gulf Oil Lubricants following the Q1 results?
At the close of trading on the day of the announcement, Gulf Oil Lubricants’ shares reflected steady investor interest, with the stock trading in line with broader market benchmarks. The company’s market capitalisation stood above ₹4,800 crore, with volumes showing heightened activity compared to recent averages.
Institutional sentiment remains constructive, with the Q1 results reinforcing perceptions of Gulf Oil Lubricants as a growth-oriented, dividend-paying mid-cap with strong brand equity and diversified revenue streams. Analysts view continued gains in premium motorcycle oils, industrial lubricants, and EV charging solutions as supportive of long-term earnings resilience. Potential headwinds include raw material cost fluctuations, competitive pricing in B2C channels, and macroeconomic risks.
What is Gulf Oil Lubricants’ strategic outlook for the rest of FY26?
Management plans to maintain growth momentum across both core lubricants and the mobility segment, with a focus on product innovation, consumer engagement, and operational efficiency. Geographic expansion through distribution gains will continue, with the aim of capturing underserved markets and reinforcing the brand’s premium positioning.
The company remains vigilant about geopolitical risks and economic volatility but intends to balance investment in long-term initiatives with disciplined margin management. With the capacity expansion underway and a strong first-quarter performance, Gulf Oil Lubricants sees itself well-positioned to deliver sustainable value creation for shareholders in the coming quarters.
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