Volume Growth: Lubricant volumes grew 16% YoY to 47,000 KL from 40,500 KL in Q2 FY26.
Revenue Growth: Revenue increased 44% YoY.
EBITDA Growth: EBITDA grew 37% YoY.
Margins: EBITDA margin stood at 11.8%, within the guided range of 12-14%.
AdBlue Volumes: AdBlue volumes were 33,000 KL in Q2, slightly lower due to monsoon season impact on vehicle movement.
H1 FY27 Performance
Volume Growth: Lubricant volumes grew 17% YoY to 95,000 KL.
AdBlue Volumes: AdBlue volumes were approximately 73,000 KL, flattish YoY.
Segment Performance
OEM Franchisee Workshops: Achieved high double-digit growth.
B2B Industrial Segment: Achieved high double-digit growth, with approximately one-third of incremental growth from new customers.
B2C Segment: Grew at 2x the market growth rate in H1.
Tirex (EV Chargers): Revenue grew 78% YoY to INR 33 crore in Q2 (from INR 18 crore in Q2 FY26).
Strategic and Operational Updates
Marketing Campaign: Launched major advertising campaign for 'Pride' motorcycle lubricant and 'Kuch Behad Kar' (Performance Beyond Limits) brand positioning.
ESG Initiative: Chennai plant awarded IGBC Platinum certification.
Capacity Expansion:
Chennai plant expansion on track for completion by end of Q3 FY27.
Silvassa plant expansion facing 1-2 month delay, now expected completion in Q1 FY28.
Total capex revised to INR 60-62 crore from initial INR 55 crore.
Fire Incident: Minor fire at Valsad facility resulted in loss of 4-5 days of production inventory, fully covered by insurance. No supply disruption expected.
Working Capital and Cash Flow
Working Capital: Increased due to higher inventory values and receivables from price increases. Days working capital remains in the 95-105 day band.
Cash Position: Company maintains INR 1,200 crore cash on balance sheet.
Cash Deployment: Priority given to M&A opportunities in lubricant adjacencies and EV mobility value chain. Dividend payout ratio increased to 65-70% in recent years.
Outlook and Guidance
Volume Growth: Expects to maintain 2x-3x industry growth rate (industry growth estimated at 3-4%).
AdBlue: Targets double-digit (10-15%) volume growth in line with BS-VI vehicle population increase.
Margins: Medium-term target remains 14-16% EBITDA margin. Current focus is on protecting per-litre margins.
Premiumization: Targeting synthetic products to reach 10% of portfolio over 3-4 years.
Business Mix: B2C/B2B ratio historically around 55/45, currently near 50/50 in Q2.
Exports: Currently around 10% of lubricant business.
Market Context
Market Share: Estimated at 7-8% of Indian lubricant market, gaining share through 2x-3x market growth.
Pricing Strategy: Implemented 3 price increases in B2C channel during H1. OEM segments have quarterly price variation clauses.
Cost Environment: Monitoring crude oil price impact on base oil (30-60 day lag). Additive costs also increasing.
Additional Information
125th Anniversary: Gulf brand celebrating 125th anniversary with new brand positioning "Kuch Behad Kar".
Management Participants: Ravi Chawla (MD & CEO) and Manish Gangwal (Whole-Time Director & CFO).
