This article first appeared on GuruFocus .
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Revenue:INR1,732 crores, up 92% year-on-year.
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Sales Volume:Approximately 131,000 kiloliters, reflecting an 8% year-on-year growth.
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EBITDA:INR281 crores, up 512% year-on-year.
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EBITDA Margin:Expanded to 16.20% from 5.1% in Q1 FY26.
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Profit After Tax:INR206 crores, representing a 6.88% year-on-year growth.
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Gross Margin Spread:INR28,145 per kiloliter, significantly above historical levels.
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Export Growth:Export volumes increased by 54% year-on-year, contributing 51% of consolidated revenue.
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Interim Dividend:Declared at 100% of the face value of shares.
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Release Date: July 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Gandhar Oil Refinery (India) Ltd ( NSE:GANDHAR ) reported the highest quarterly profit in the company's history, demonstrating strong financial performance.
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The company achieved a 92% year-on-year increase in consolidated revenue, reaching INR1,731.9 crores.
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Export business recorded a robust 54% year-on-year growth, contributing significantly to the company's revenue.
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The PHPO segment, a primary growth engine, registered an 18% year-on-year growth, driven by sustained demand from personal care, healthcare, and pharmaceutical sectors.
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The company declared an interim dividend of 100% of the face value of its shares, reflecting strong cash generation and financial flexibility.
Negative Points
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The operating environment was challenging due to geopolitical tensions in the Middle East, affecting raw material availability and pricing.
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There were intermittent disruptions across global supply chains, leading to elevated freight and insurance costs.
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Operations at the subsidiary, Textol, were temporarily impacted by regional supply constraints and vessel movement disruptions.
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The company faces uncertainties in maintaining the exceptional margin levels achieved this quarter due to volatile market conditions.
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There is a risk of potential degrowth in subsequent quarters if the exceptional market conditions do not persist.
Q & A Highlights
Q: Congratulations on the strong results. Could you break down the margin expansion between product mix and inventory gains? How do you see EBITDA margins for the year? A: We don't carry significant inventory to attribute gains to it. The margin expansion is mainly due to higher selling prices. We are hopeful that margins will remain at current levels throughout the year. The exceptional market conditions and efficient sourcing contributed to this quarter's performance.
Q: How do you foresee revenue growth for the year? What volume growth are you targeting? A: Historically, we've achieved volume growth of 8% to 11%. We expect similar growth this year. Revenue growth will be driven by both volume and price increases.
Q: Export performance has been strong. What is the outlook for exports this year? A: We export to over 100 countries and maintain strong relationships with overseas customers. We expect export revenue to remain at similar levels in the coming quarters.
Q: Can you elaborate on the impact of geopolitical tensions on your sourcing strategy? A: The geopolitical situation, particularly in the Middle East, led to some supply disruptions. We adjusted our sourcing strategy by buying more from domestic producers and South Korea, which helped us maintain supply and expand margins.
Q: What is the outlook for the PHPO segment, and are there any changes expected in the segmental mix? A: The PHPO segment remains a key growth driver, supported by demand from personal care and healthcare sectors. We expect the current segmental mix to continue, with PHPO and PIO being the primary contributors.
Q: How do you plan to manage capital allocation between dividends and future capacity expansion? A: The strong performance allows us to allocate capital for dividends and potential CapEx. We have declared an interim dividend and have sufficient internal accruals to fund future expansions without additional borrowing.
Q: What are your plans for entering new geographies like South Africa? A: The strategy for South Africa is being developed, and more clarity will emerge in the next few quarters. It is premature to provide specific details at this time.
Q: Can you provide insights into the competitive landscape in the specialty oils market? A: The industry is expected to grow at a 5% CAGR globally. With our strong balance sheet, sourcing capabilities, and customer relationships, we are well-positioned to capitalize on this growth and maintain a competitive advantage.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
