Synopsis:
Gandhar Oil Refinery (India) jumped 3% after it secured an order worth Rs 25 crore from Bharat Heavy Electricals for the supply of Transformer Oil and will be carried out over the next two years.
The shares of this leading oil refinery stock are in focus after the company secured a significant order from a leading PSU. In this article, we will dive more into the details of it.
With a market capitalization of Rs 1,487 crore, the shares of Gandhar Oil Refinery (India) Ltd made a day high of Rs 155.60 per share, up by 3.32 percent from its previous day closing price of Rs 150.60 per share. In the last one year, the stock has corrected by 29 percent. As of June 2025, Barclays Wealth Trustees India Private Limited holds a 1.02 percent stake in the company.
About the order
Gandhar Oil Refinery (India), through a stock exchange filing, announced that it has secured a major Rate Contract/Framework Agreement with Bharat Heavy Electricals Limited (BHEL) in Jhansi for the supply of transformer oil. This contract is valued at Rs 24.60 crore and will be carried out over the next two years..
What’s great is that the agreement is set on a firm price basis, which means pricing will stay stable throughout the contract period.
This order is a big win for Gandhar Oil Refinery, as it boosts their presence in the transformer oil market and showcases their strong relationship with BHEL. Not only does this contract enhance the company’s order book, but it also solidifies their reputation as a reliable supplier to major public sector enterprises in the power equipment sector.
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Financial Highlights
The company’s revenue for Q1 FY26 was Rs 903 crore, representing a 9 percent decrease from Rs 995 crore in the same quarter last year. Additionally, on a sequential basis, revenue declined by 6 percent from Rs 962 crore in Q4 FY25.
Regarding its profitability, the company reported a 21 percent net profit decline to Rs 26 crore in Q1 FY26, compared to Rs 33 crore in Q1 FY25. However, on a QoQ basis, it grew by 117 percent from Rs 26 crore.
The stock delivered a poor ROE and ROCE of 6.65 percent and 10.59 percent respectively, and is currently trading at a P/E of 19.63x as compared to its industry average of 18x.
Gandhar Oil Refinery (India) Limited stands out as a top player in the production of white oils, serving a variety of sectors including consumer goods, healthcare, automotive, and industrial markets. Their impressive lineup features products like waxes, jellies, lubricants, transformer oils, and rubber processing oils, all proudly branded under Divyol.
Beyond manufacturing, the company is also involved in non-coking coal trading, logistics, and polymer products. They cater to a wide array of industries such as plastics, textiles, power, and chemicals, and their reach extends globally, exporting to regions like the Americas, Europe, Africa, and Asia-Pacific.
Written by Satyajeet Mukherjee
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