Gulf Oil Q1 FY27 Revenue Hits Record INR 1,320 Crores

Core Lubricants Volume: 48,000 KL (all-time high, previous high was 45,000 KL in Q4 FY26)
Volume Growth: 17% year-on-year (3x the industry growth rate)
AdBlue Volume: 40,000 KL (stable quarterly run-rate)

Revenue: INR 1,320 crores, up 33% YoY (first time crossing INR 1,300 crores)
EBITDA: INR 170 crores, up 35% YoY (previous high was INR 135 crores in Q4 FY26)
PAT: INR 127.5 crores (all-time high)
EPS: INR 25+
EBITDA Margin: 12.9% (within guided range of 12-14%)

Growth was broad-based with double-digit growth across all segments:

B2C (55% of sales): Strong growth in Passenger Car Motor Oil (PCMO) and agriculture segments
OEM & Franchisee Workshops: Double-digit growth led by agriculture (Mahindra, Swaraj) and motorcycle (Bajaj) segments
B2B (45% of sales): Growth across industries, infrastructure, and mining, driven by existing customer base and new customer acquisitions
Marine Segment: Good growth with some exports from India
Sales Mix: Remained consistent at approximately 45% B2B and 55% B2C

Middle East Crisis: Significant supply chain disruptions due to Strait of Hormuz closure affecting raw material availability
Raw Material Inflation: Base oil prices increased significantly with crude touching $120/barrel during the quarter
Pricing Actions: Multiple price increases implemented across segments (3 increases in B2C starting March/April, staggered increases in B2B)
Supply Chain Management: Company maintained uninterrupted supply to customers through long-term tie-ups with refiners and active spot market sourcing, carrying 30-45 days of base oil inventory

Q1 Performance: Slightly subdued due to slow government e-bus depot installations
Revenue Guidance: Maintained INR 300-400 crores target over 3-4 years
Market Position: 8-10% market share in DC charger business; supplies to major OEMs including Mahindra, MG, Olectra, Switch, OHM, VinFast
Capacity Expansion: New plant being set up with enhanced capacity for future growth
Business Model: Focus on manufacturing chargers (CPM) rather than charge point operations (CPO) due to current low utilization levels in India

Silvassa Plant: 70% capacity expansion on track, expected commissioning by end of March 2027
Chennai Plant: 70% capacity expansion on track, expected commissioning by December 2026
Both expansions involve phased production increases with intermediary equipment and storage commissioning

Gross Margin Pressure: Experienced dip due to time lag in passing through raw material cost increases
Operating Leverage: Benefited from volume growth which helped absorb fixed costs
A&P Spending: Maintained at approximately 3% of revenue, no significant cuts
Inventory Valuation: INR 109 crores increase in inventory value reflected in P&L due to higher input costs
Pricing Strategy: In B2C, MRP increases may not be fully rolled back if costs decrease; B2B pricing is formula-driven with quicker pass-through

Volume Growth: Target to grow 2-3x industry growth rate (industry expected at 3-4% annually)
Margin Guidance: Maintained 12-14% EBITDA margin band with aspiration to move to 14-16% over medium to long term
Q2 FY27 Expectation: Seasonally weaker monsoon quarter typically affecting demand, particularly in B2C and agriculture segments
Raw Material Outlook: Continued uncertainty depending on Strait of Hormuz situation and base oil supply dynamics
Premiumization Strategy: Focus on increasing synthetic and value-added product share (currently below 10% of portfolio), targeting 1-1.5 percentage point increase annually

No significant changes to capital structure disclosed. Debt raised for Tirex plant expansion as mentioned in previous quarters.