Gulf Oil Q4 FY26 Record Volumes, Revenue, EBITDA

Lubricant Volumes: Achieved a record 45,000 KL, representing a 14% year-on-year (YoY) growth. This is the highest quarterly volume in the company's history.
AdBlue Volumes: Recorded 40,000 KL, an 8% YoY growth.
Revenue: Grew by 14% YoY, driven by the strong volume performance.
EBITDA: Reached a record high of ₹135 crores, an 8.5% YoY growth, despite headwinds from rupee depreciation and the Middle East crisis.
The growth was broad-based across all key segments, including Passenger Car Motor Oils, Commercial Vehicles, and Agriculture, all delivering double-digit growth.

Lubricant Volumes: Totaled 1,68,000 KL, a 10.5% growth for the year, which is 2x-3x the industry growth rate.
AdBlue Volumes: Totaled 1,51,000 KL, an 8% growth for the year.
Consolidated Revenue: Crossed ₹4,000 crores for the first time.
Standalone EBITDA: Was the highest ever at ₹510 crores.
Consolidated EBITDA: Was ₹514 crores.
Dividend: The Board recommended a final dividend of ₹30 per share. This is in addition to an interim dividend of ₹21 per share declared and paid in February, bringing the total dividend for FY26 to ₹51 per share, the highest ever. The dividend payout ratio for FY26 is approximately 72%.

The company continues to outperform the industry, growing at 2x-3x the industry rate, which is estimated at 3-4%.
Strength in OEM franchisee workshops was highlighted, with partnerships with over 40 OEMs across automotive, industrial, and construction sectors. This business recorded strong double-digit growth.
The B2B industrial segment continued its strong growth trajectory.
The "Unlock 2.0" strategy focuses on accelerating growth, premiumizing the product portfolio, and digital transformation.

The EV subsidiary, Tirex Transmission, crossed a revenue milestone of ₹100 crores in FY26.
It has gained a 35-40% market share in new DC chargers for electric buses.
Key customer additions include MG Motors and VinFast for AC chargers.
The company is exploring bringing chargers from its global investment, Indra (a UK leader), to India.
A new manufacturing plant for Tirex is under development and is expected to be operational by Q3 FY27.
The company increased its stake in Tirex from 51% to 65% during the last year by investing an additional ₹38 crores.

The company has developed two products for liquid cooling in data centres: one PAO-based (synthetic) and one mineral-based.
Products have been tested for critical material compatibility parameters.
The next step is testing the products in live data centres.
Management reiterated that this is a high-potential but currently low-volume opportunity.

Expansion plans at the Chennai and Silvassa plants are on track.
The additional capacity at the Chennai plant is expected to be operational by Q3 FY27.
The Silvassa plant expansion is expected to be operational by Q4 FY27.

Management aims to continue growing volumes at 2x-3x the industry rate.
Focus remains on segments with lower market share (e.g., Passenger Car Motor Oils) to accelerate growth.
The strategy includes increasing distribution by 10-15% in both urban and rural areas.

Management reiterated its commitment to maintaining an EBITDA margin band of 12-14% for FY27.
This will be challenging due to significant input cost inflation but will be managed through price increases and cost recalibration.

The industry is facing significant headwinds from the Middle East crisis, which caused crude oil prices to rally from $65-$70 in February to over $100 (peaking at $120) by the end of Q1 FY27.
This has led to sharp increases in the cost of base oils, additives, and packaging materials, with the time lag for cost pass-through reducing from 2 months to 1-2 weeks.
The company has undertaken multiple price increases to pass on these higher costs to customers.
Supply security for raw materials is the current key priority. The company has increased its base oil inventory from a normal 45 days to 45-60 days to ensure it can meet customer demand.
So far, there have been no major supply disruptions, though some term contract allocations from South Korean and Singaporean refiners have been reduced to 80-90%.
Rupee depreciation throughout FY26 was another challenge that was successfully navigated.

The company is a strong cash-generating entity.
Capital allocation priorities include funding growth opportunities (e.g., EV business, capacity expansion), maintaining a strong balance sheet for working capital needs, and returning capital to shareholders via dividends.
The high dividend payout ratio of 72% for FY26 reflects the Board's pragmatic approach while evaluating further investment opportunities.

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