Gulf Oil Lubricants India Ltd

Overview

• Standalone BRSR for FY2025-26; disclosures on standalone basis.
• Main activity: manufacturing automotive/industrial lubricants, greases, AdBlue, and batteries.
• Lubricants account for about 97.4% of turnover.

Key ESG Risks & Opportunities

• Emissions/energy management identified as risk and opportunity due to stricter norms and EV demand.
• Water management listed as risk; ZLD and on-site treatment mitigate supply risk.
• Circular economy/product stewardship: EPR obligations and PCR packaging create opportunities.
• Employee health, engagement, wellbeing: positive impact on productivity and retention.
• Customer satisfaction and product safety: opportunities with risk of regulatory action.

Governance & Policy Highlights

• Board-level Corporate Social Responsibility & Sustainability Committee provides ESG oversight.
• Policies include anti-bribery, whistleblower, human rights, POSH; board-approved.
• Zero confirmed corruption/bribery incidents in FY2025-26.
• Code of Conduct and ABC policy robustly enforced with whistleblower safeguards.
• Public disclosures include first standalone Sustainability Report; committee meets half-yearly.

Social Responsibility & Workforce

• Total employees 1,525; women represent 6.9% of permanent staff and 5.5% of total.
• LTIFR improved to 0.53; one recordable injury; no fatalities.
• ISO 45001/14001/50001 certified; rooftop solar and IGBC green buildings.
• CSR focus areas: Road to School, Road to Livelihood, Kushal Mechanic Training, Suraksha Clinics, Water ATMs.
• Target to reach 15% women by 2030; 100% health/accident insurance for employees.

Environmental Performance

• ISO 50001 certified; rooftop solar 1,129 kWp; renewables share >20%.
• Scope 1: 412 tCO2e; Scope 2: 2,561 tCO2e; total 2,973 tCO2e.
• Zero Liquid Discharge at both plants; no liquid waste discharge.
• Total waste 935.76 MT; recycled 540.41 MT; disposed 395.35 MT.
• Water withdrawal 44,484 KL; consumption 43,486 KL; intensity 1.09 KL/million INR.

Stakeholder Engagement & Complaints

• Stakeholders include shareholders, employees, investors, customers, suppliers, communities; engagement via quarterly calls and portals.
• Customer complaints: 296 filed FY2025-26; 0 pending.
• Investors: 21 complaints filed; 0 pending.
• POSH complaint: 1 filed; resolved.
• GULFCARE portal tracks complaints and resolutions.

Other Notable Metrics

• RPTs: purchases 1.52%; sales 5.27% of total.
• Top 10 trading houses: 92.22% of trading purchases.
• Training: board and KMP ESG trainings; 100% coverage; 2 sessions.
• Cybersecurity: zero incidents; DPDP Act alignment ongoing.
• Life Cycle Assessments in progress for two products; results to be disclosed later.

Financial performance

• Standalone revenue: 3,99,130.58 Lakh, up 12% YoY.
• Consolidated revenue: 4,05,604.06 Lakh; up 11.7%.
• EBITDA Standalone: 51,038 Lakh; margin 12.8%.
• Standalone PAT: 35,091.86 Lakh.
• PAT Consolidated: 34,484.94 Lakh; YoY decline.
• Dividend per share: total 51.00 INR.
• Dividend payout ratio: 72%.
• Cash from operations: 36,252 Lakh.
• Cash at year-end: 1,14,057 Lakh.
• Gearing ratio: 0.33x.

EV and mobility focus

• Tirex stake increased to 65.18%; revenue crossed 100 Crore.
• EV charging solutions and EV fluids expanding via Indra Renewables and ElectreeFi.
• Syntrac variants launched for premium motorcycles; API SP certified.

Capex and capacity expansion

• Capex of 55 Crores approved; capacity to 240 million litres.
• Silvassa capacity: 140 million litres; Chennai: 100 million litres.
• Current two-plant capacity: 140,000 KL; target 240,000 KL p.a.

EV ecosystem and partnerships

• EV ecosystem investments include Indra Renewables and ElectreeFi.
• Ariyalur wetland and road safety CSR initiatives support mobility sustainability.

Governance and board

• Board of 8 with 50% independent; one independent woman.
• MD & CEO: Ravi Shamlal Chawla; WTD & CFO: Manish K. Gangwal.

Capital structure and reserves

• Authorized share capital: 523,13,614; issued: 4,94,00,074; paid-up: 9,86.09 Lakh.
• 56% dematerialised; promoter holding 67.01% (Gulf Oil International Mauritius).

Risks and outlook

• Global macro volatility; India growth resilient; rupee depreciation affects margins.
• FX hedging: 52-60% hedged for 2-4 months.
• FY2026-27 outlook: ~6.6% GDP growth; Gulf aims 2-3x industry volume.

ESG and CSR highlights

• ISO 50001 energy management at both plants; rooftop solar 100% capacity.
• PCR packaging content; 30%+ PCR packaging targets; 20% renewable energy share across sites.
• Women representation: 6.90% permanent; 5.51% total; 15% by 2030.
• CSR spend FY2025-26: ~7.48 Crore; no unspent CSR obligation.
• LTIFR improved to 0.53; POSH complaint resolved.

Dividend and capital market disclosures

• Final dividend: Rs 30 per share; record date Sep 4 2026.
• Unclaimed dividends transferred to IEPF; schedule in annual report.

• AGM date/time: 11 September 2026, 3:00 PM IST, via VC/OAVM.
• Mode: VC/OAVM; deemed venue: Registered Office, Mumbai; notice and annual report available on website.
• Record date for voting: 4 September 2026.
• Ordinary: Adoption of Standalone and Consolidated Audited FS for FY2025-26.
• Ordinary: Declaration of final dividend.
• Special: Re-appointment of Shom Ashok Hinduja as Non-Executive Director.
• Special: Ratification of remuneration to Cost Auditors for FY2026-27 at Rs 4.50 lakh.
• Final dividend of Rs 30 per equity share proposed.

Quarterly overview

• Q1 FY27 standalone: core lubricants volume grew 17% YoY.
• Revenue and EBITDA grew over 30%; EBITDA margin 13%.
• Uninterrupted supply to OEMs and customers despite West Asia disruptions.
• Broad-based growth across B2C, OEM, and B2B segments.
• Margin resilience and operational efficiency remained focus.

Capacity expansion

• Chennai capacity: 50 to 100 million litres per annum by Q3 FY27.
• Silvassa capacity: 90 to 140 million litres per annum by Q4 FY27.
• Total capacity: 140 to 240 million litres per annum, ~70% expansion.
• Capex Rs 55 crores; phased over two years.

EV & strategic investments

• Invested INR 185 crore in EV ecosystem; Techperspect SaaS stake 26%.
• Tirex DC/AC chargers: INR 140 crore; 65% stake; 65.18% ownership.
• Indra Renewable Technologies: INR 30 crore; ~7.5% stake.
• Gulf Pride batteries: 23% replacement-market share; 2W focus.
• ElectreeFi app: 100k+ downloads; 50k chargers on app; 40k deployed.

Capital allocation & dividends

• FY25 dividend payout 65%; FY26 payout 72%.
• Cash flow from operations FY26: INR 365 crores.
• Total dividend paid in last 5 years: over INR 800 crores.
• Buyback: Rs 85 crores in FY22.
• Annual maintenance capex: INR 30-40 crores.

Governance & shareholding

• Tirex ownership elevated to 65.18%; origin 51% in Oct 2023; FY26 up 14.18%.
• Techperspect stake: 26%; Indra stake: ~7.5%; Tirex strategic value.
• Dividends and shareholder returns continuing trend.

Risks & outlook

• Forward-looking statements subject to inflation, supply-chain, and regulatory risks.
• Management expects continued profitable growth and margin resilience.

Meeting Details

• Date: Thursday, August 13, 2026.
• Type: Group meeting with analysts/institutional investors at Emkay Conference 2026.

Participants

• Key company participant: Company Secretary and Compliance Officer.

Purpose

• Purpose: Analyst/institutional investor meet.

Additional Notes

• Schedule subject to change due to exigencies.

Financial Performance

• Q1 FY27 revenue 1,320 crores, up 32% YoY.
• EBITDA 170 crores; PAT 127.5 crores; EPS 25+.
• Lubes volume 48,000 KL; record high vs 45,000 previous.
• AdBlue volume 40,000 KL in quarter.
• EBITDA margin around 12.9–13%; within 12–14% band.
• Exports contribution around 9–10% in the quarter.
• Battery turnover in Q1 around INR 20 crores; growth target 10–15%.
• Tirex capex INR 300–400 crores; 70% capacity expansion.
• Chennai on track; Silvassa augmentation by financial year end.

Operating Update

• Mix: 55% B2C, 45% B2B; all segments double-digit growth.
• OEM growth driven by agriculture and motorcycles; PCMO strong.
• AdBlue margin single-digit; volume adds to overall efficiency.
• Premiumization below 10%; focus on synthetics and value-added.
• EV traction in e-buses; nascent, targeted tenders under government programs.
• Pricing discipline: multiple price increases; no inventory gains.
• Base oil cost volatility; 7–8 grades; pass-through delayed.
• AdBlue volume 40,000 KL; synergy with other segments.
• B2C may retain margins after price hikes; B2B passes through via formulas.
• July-September is monsoon quarter; demand generally softer.

Projects and Capex

• Tirex capex INR 300–400 crores; 70% capacity expansion at Silvassa and Chennai.
• Chennai on track; Silvassa expansion to start by FY end.
• DC charger market share 8–10%; OEMs include Mahindra.
• OEM count grew from 2 in 2007–08 to 50 today.
• Base oil domestic supply in talks with NOCs; sourcing when ready.
• Tirex not into CPO business; focus on chargers and networks.
• Finished goods inventory change of INR 109 crores; price increases reflect next quarters.

Outlook and Guidance

• Guidance reiterated: 12–14% EBITDA margin; premiumization to 14–16% over time.
• Industry growth expected around 3–4%; Gulf targets 2–3x market growth.
• First half revenue expected positive; Q1 slow due to EV bus deployment delays.
• Base oil price and Middle East risk could affect margins.

Q&A Highlights

• Q: Pricing and margin trajectory; A: B2C price hikes may persist; margins held in 12–14%.
• Q: Demand drivers; A: Industry growth ~3–4%; Gulf gained share due to supply security.
• Q: AdBlue margins; A: AdBlue margins single-digit; volume supports operating leverage.
• Q: Tirex and DC charging; A: Tirex not a CPO; focus on chargers and networks.
• Q: Inventory impact; A: 109 crores FG/RM inventory change; price increases to reflect later revenue.
• Q: Exports; A: Exports ~9–10% of quarterly revenue; domestic growth strong.
• Q: Battery business; A: Q1 battery turnover ~INR 20 crores; growth target 10–15%.

Meeting Details

• Board meeting scheduled for August 3, 2026; time and venue not disclosed.

Key Agenda Items

• To consider and approve Unaudited standalone and consolidated financial results for quarter ended June 30, 2026.

Other Notes

• Trading window closed for designated persons and immediate relatives from July 1, 2026 until 48 hours after results.

Reporting to stock exchanges

• Details of dematerialised/rematerialised securities for quarter ended June 30, 2026 were furnished to all stock exchanges where listed.
• Certificates issued by KFin Technologies Limited (RTA) and NSDL confirming furnishing of those details to exchanges.