30-Oct-2026 22:20:28
GULF OIL LUBRICANTS Q2 CONCALL: TARGETS 2–3X INDUSTRY VOLUME GROWTH, 12–14% EBITDA MARGIN; ₹60–62 CR CAPEX & TIREX CAPACITY EXPANSION TO 3,000 CHARGERS
• H2 FY27 Volume Outlook: Management expects lubricant volume growth of 2–3x industry growth of 3–4%, targeting close to double-digit growth. • EBITDA Margin Guidance: Maintains 12–14% margin band, with a medium-term target of 14–16%. • Margin Outlook: Management expects recovery through premiumization, operating leverage and stabilization of raw material costs. • Pricing Strategy: Three price hikes taken in B2C; further increases possible if crude-linked base oil costs remain elevated. • AdBlue Guidance: Targets 10–15% volume growth, supported by increasing BS-VI vehicle penetration. • Synthetic Lubricants: Targets approximately 10% portfolio contribution from synthetic products over the next 3–4 years. • Tirex Expansion: EV charger manufacturing capacity targeted to increase to 3,000 chargers by CY2026-end. • Tirex Revenue: Q2 revenue increased 78% YoY to over ₹33 Cr. • Plant Expansion: Chennai capacity expansion expected by Q3 FY27-end; Silvassa expansion may be delayed to Q1 FY28. • Capex: Total Chennai and Silvassa expansion investment increased to ₹60–62 Cr from ₹55 Cr earlier. • OEM Business: Franchisee workshops delivered high double-digit growth, supported by approximately 7,000 OEM workshop relationships. • Industrial Business: High double-digit growth, with nearly one-third of incremental growth coming from new customers. • Distribution Expansion: Retail outlet network increased approximately 16%. • Market Share: Management estimates 7–8% share of the Indian lubricant market. • B2C Growth Target: Aims to grow at least twice as fast as the industry. • Working Capital: Management expects stabilization if input prices remain near current levels. • Cash Reserves: Approximately ₹1,200 Cr available for M&A opportunities, mobility investments and shareholder distributions. • Dividend Policy: Previous-year payout was approximately 65–70%; no firm FY27 payout commitment. • Q2 Lubricant Volumes: UP 16% YoY to 47,000 KL. • H1 Lubricant Volumes: UP approximately 17% YoY to 95,000 KL. • Q2 Revenue: UP approximately 44% YoY. • Q2 EBITDA: UP approximately 37% YoY. • Q2 EBITDA Margin: 11.8%, compared with management's 12–14% target band. • Valsad Fire: Inventory equivalent to 4–5 days of production affected; stock insured and no major supply disruption expected.
GULF OIL LUB. IND. LTD.