Synopsis:
A leading white oil stock surged over 12 percent on Thursday after reporting a strong Q2FY26 performance, with net profit up 122 percent year-on-year. Investor optimism was supported by sequential growth across key metrics and a robust client base including Emami, Adani, and other major domestic and international players.
A white oil stock surged over 12 percent on Thursday after reporting a robust Q2FY26 performance, with net profit rising 122 percent year-on-year. Investor sentiment was boosted by sequential growth across key metrics and strong demand for high-margin Personal Care, Health Care, and Performance Oil (PHPO) products, supported by a diversified client base that includes Emami, Adani, and other leading domestic and international companies.
Gandhar Oil Refinery (India) Ltd, with a market capitalization of Rs. 1,467.70 crore, opened at Rs. 160 on the BSE, the same as its intraday high, against a previous close of Rs. 141.70, marking a growth of 12.9 percent. The company is leading white oil producers in India with 26.5 percent market share and is among the top five global players with 9.6 percent market share in white oil.
Financial Snapshot – Q2FY26
Quarter-on-Quarter (QoQ): Revenue increased from Rs. 903 crore in Q1FY26 to Rs. 1,060 crore in Q2FY26, up 17.4 percent. Operating profit rose from Rs. 46 crore to Rs. 66 crore, a jump of 43.5 percent, with operating margin expanding from 5 percent to 6 percent. Profit before tax grew from Rs. 32 crore to Rs. 51 crore, up 59.4 percent, while net profit increased from Rs. 26 crore to Rs. 40 crore, a gain of 53.8 percent. EPS rose from Rs. 2.68 to Rs. 3.68.
Year-on-Year (YoY): Compared to Q2FY25, revenue increased from Rs. 935 crore to Rs. 1,060 crore, up 13.4 percent. Operating profit grew from Rs. 40 crore to Rs. 66 crore, a 65 percent rise, with operating margin improving from 4 percent to 6 percent. Profit before tax increased from Rs. 25 crore to Rs. 51 crore, up 104 percent, while net profit surged from Rs. 18 crore to Rs. 40 crore, a gain of 122.2 percent. EPS rose from Rs. 1.86 to Rs. 3.68.
Operational Highlights
Consolidated manufacturing sales volumes for H1FY26 reached 261,524 KL, up 9 percent from 240,318 KL in H1FY25. Revenue composition for H1FY26 was led by PHPO at 49.29 percent, lubricants at 28.09 percent, channel partners at 12.94 percent, and PIO at 9.67 percent. Consolidated manufacturing gross margin for Q2FY26 stood at Rs. 8,662 per KL.
Client Profile
In the PHPO segment, Gandhar Oil serves P&G, Bajaj Consumer Care, Marico, Emami, Dabur, Unilever, and Patanjali. In the Lubricants segment, key clients include Adani Ports and Logistics and Gulf Oil, while in the Process Insulating Oil (PIO) segment, the company caters to Toshiba, Vamshi Rubber, and Avigiri. Overseas sales accounted for 40.21 percent of consolidated revenue in FY25.
Management Commentary
Commenting on the Results, Aslesh Parekh, Joint Managing Director said:
“We delivered a strong Q2 FY26 performance, supported by robust domestic demand and our focus on high margin PHPO products. Despite global headwinds and logistical challenges, we achieved sequential growth across key metrics.
Revenue for Q2 stood at Rs. 10,599 million, up 17 percent over Q1, while EBITDA rose 43 percent to Rs. 658 million and PAT increased 52 percent to Rs. 398 million. For H1 FY26, revenue reached Rs. 19,629 million and EBITDA stood at Rs. 1,118 million, with manufacturing sales volumes at 261,524 KL, up 9 percent year-on-year.
PHPO continues to lead with nearly 50 percent of revenue, driven by strong demand in personal care and healthcare. Our balance sheet remains healthy with negligible debt, despite higher working capital days due to longer export lead times.
During the quarter, we secured a significant Rate Contract from Bharat Heavy Electricals Limited (BHEL), Jhansi, for the supply of Transformer Oil over two years, valued at Rs. 24.60 Crores. This reinforces our capabilities in industrial oil solutions.
We remain optimistic about domestic demand and expect gradual stabilization in global supply chains, strengthening our confidence in Gandhar’s long-term growth trajectory.”
About the Company
Gandhar Oil Refinery (India) Limited is a leading manufacturer of specialty oils and one of the largest white oil producers in India. The company produces a wide range of products including white oils, waxes, jellies, automotive oils, industrial oils, transformer oils, and rubber processing oils under its flagship brand “Divyol.” With a strong focus on consumer and healthcare industries and a diversified global client base, Gandhar is recognized among the top five white oil players worldwide.
Written by Manan Gangwar
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