Financial Performance Highlights

Q4 FY26 Performance (Consolidated):

  • Revenue: ₹1,093 crores, representing 14% year-on-year growth
  • EBITDA: ₹64 crores
  • Profit After Tax (PAT): ₹37 crores (compared to ₹12 crores in Q4 FY25)
  • Gross Margin Spread: ₹9,351 per kL
  • EBITDA Margin: 5.81%

Full Year FY26 Performance (Consolidated):

  • Revenue: ₹4,241 crores, representing 9% growth over FY25
  • EBITDA: ₹234 crores
  • PAT: ₹137 crores
  • EPS: ₹13.8 (compared to ₹8.18 in FY25)
  • ROE: 10.21% (vs. 6.65% in FY25)
  • ROCE: 13.5% (vs. 10.8% in FY25)
  • Finance Cost: Reduced by 28% from ₹48.40 crores in FY25 to ₹37.59 crores in FY26
  • Gross Margins: Improved from 10.96% to 11.48%
  • Cash Flow from Operations: Positive ₹127.77 crores (compared to ₹14.71 crores previous year)

Operational Metrics

  • Manufacturing Volumes for FY26: 5,54,212 kL, representing 8% year-on-year growth
  • Capacity Utilization: 93% across all plants (India plants achieved 126% utilization working 3 shifts)
  • Installed Capacity: 5,97,403 kL across all units
  • Realization: ₹76,526 per kL for all product categories
  • Segment Mix: PHPO (50%), Lubricants (27%), PIO (10.19%)

Business Segments and Geographic Distribution

  • International Business Contribution: 42.8% of consolidated revenues
  • Export Network: Products exported to 100+ countries
  • Key Growth Regions: Asia Pacific, Africa, and South Americas
  • Domestic vs. Export Revenue Split: 54% domestic, 45% export

Strategic Updates and Management Commentary

Geopolitical Impact:

The company acknowledged significant geopolitical tensions involving Iran and potential disruptions in the Strait of Hormuz since March 2, 2026. This has caused:

  • Intermittent volatility in base oil pricing
  • Supply chain tightness
  • Elevated shipping and insurance costs for Middle East routes
  • 20-22% of raw material sourcing from Middle East suppliers

Mitigation Strategies:

  • Diversified sourcing to Korean suppliers and domestic suppliers (BPCL, Indian Oil)
  • Maintaining optimum inventory levels of 40-45 days
  • Formula-based pricing with suppliers to manage cost volatility
  • Price pass-through mechanisms with 35-40% of customers

Market Outlook:

  • Global white oil market valued at approximately $1.93 billion in 2026, expected to reach $2.75 billion by 2033 (5.5% CAGR)
  • Growth driven by regulatory requirements, healthcare awareness, and demand for high-purity specialty products
  • Asia Pacific leading demand growth supported by industrial expansion

Expansion Plans and Capital Allocation

Taloja Expansion:

  • Acquired 5-acre land in Taloja for plant expansion
  • Current operations at 100% capacity utilization
  • Detailed capex plan for capacity expansion to be finalized in subsequent quarters

International Presence:

  • Texol plant in Hamriyah Free Zone, Sharjah impacted by Middle East tensions but situation normalizing
  • Company setup in South Africa with Board approval for investment up to ₹50 crores
  • Evaluating options between manufacturing facility or office setup

Financial Position:

  • Debt-free status with no long-term debt
  • Reserves and surplus of approximately ₹1,200 crores
  • Strong cash position to fund expansion plans

Product and Customer Strategy

  • Focus on PHPO (Personal Care, Healthcare, Performance Oil) categories
  • Customer accreditation process takes 4-5 years with high stickiness post-approval
  • R&D expenditure at 4.5-5% of total other expenses
  • Developing new products through customer interactions

Raw Material and Pricing Dynamics

  • Base oil prices increased 20-25% compared to 10% crude oil increase
  • Sourcing primarily through index-linked pricing
  • Pricing revisions to customers every fortnight to pass on raw material cost changes and dollar-rupee movements

Management Participants

  • Mr. Aslesh Parekh – Joint Managing Director
  • Mr. Indrajit Bhattacharyya – Chief Financial Officer
  • Moderator: Ms. Nidhi Vijaywargia – MUFG Intime