Gulf Oil Lubricants India Limited announced a robust performance for the second quarter and half-year ended September 30, 2026. The company reported a 16% growth in lubricant volumes for Q2 FY27, driven by strong performance across B2C, OEM franchisee workshops, and B2B industrial segments. Revenue saw a significant 44% increase, with EBITDA growing by 37%. The company also highlighted strategic investments in advertising and premiumization efforts.
Gulf Oil Lubricants Delivers Strong Q2 Performance
Gulf Oil Lubricants India Limited has released its earnings call transcript for the second quarter and half-year ended September 30, 2026. The company showcased a strong operational and financial performance, marking a 16% volume growth in lubricants for Q2 FY27, a notable achievement given the typical monsoon season’s impact. This growth follows a similar robust trend from Q1 FY27.
Key Financial Highlights and Growth Drivers
During the quarter, Gulf Oil Lubricants achieved a revenue growth of 44%, with EBITDA increasing by 37% year-on-year. The company’s strong business model and strategic execution were credited for this performance. Key growth drivers included the B2C segment, OEM franchisee workshops (showing high double-digit growth), and the B2B industrial segment, which also experienced high double-digit expansion. The company also noted a substantial increase in its OEM customer base, with nearly a third of incremental growth coming from new industrial B2B customers.
Strategic Initiatives and Outlook
Gulf Oil Lubricants highlighted its significant investment in a new advertising campaign for its ‘Pride’ product and a repositioning of its brand message to ‘Born to be Behad’ (‘Performance Beyond Limits’). Mechanic engagement activities and a focus on premiumization remain central to its strategy. The company also noted the Chennai plant’s progress on ESG initiatives, receiving IGBC Platinum certification. Looking ahead, the company anticipates a good second half (H2 FY27), aiming for 2x to 3x market growth in lubricants and expects continued momentum in various segments, despite potential weak demand in the agri season. The company aims for a medium-term margin target of 14% to 16%.
Volume Growth and Segment Performance
Overall core lubricant volume stood at 47,000 KL in Q2 FY27, a 16% increase from the previous year’s 40,500 KL. Year-to-date (H1 FY27), volumes reached 95,000 KL, showing a 17% growth. AdBlue volumes saw a slight dip in Q2 due to monsoons but are expected to grow near double-digit in the coming year, aligning with the increase in BS-VI vehicle population.
Working Capital and Pricing Strategy
The company addressed an increase in working capital, attributing it to significant cost and price increases leading to higher inventory and receivable values. However, the number of days remained within the usual band of 95-105 days. Gulf Oil Lubricants has also implemented calibrated price increases to counter inflationary pressures and protect per-litre margins, emphasizing its focus on maintaining profitability amidst a challenging environment.
Source: BSE
