Q1 2027 Gulf Oil Lubricants India Ltd Earnings Call Transcript
Key Points
- Record-breaking quarter with revenue crossing ₹1,300 crore, up 33% year-on-year, and EBITDA up 35% to ₹170 crore.
- Strong volume-led growth of 17% year-on-year, which is over 3x the industry growth rate, driven by broad-based double-digit growth across B2C, OEM, and B2B segments.
- Successfully navigated the West Asia crisis and supply chain disruptions by ensuring uninterrupted supply, which helped win new customers and increase market share.
- Maintained EBITDA margin at 13% despite significant input cost inflation, showcasing operational resilience and effective pricing management.
- AdBlue business continues to be a strong pillar, with volumes stable at 40,000 KL per quarter, and the company is now a top-three supplier in India.
- Battery business (Tirex) is gaining traction with a good quarter, and the company is expanding its OEM partnerships and product portfolio in the EV charging space.
- Gross margin saw a slight dip due to the time lag in passing on cost increases to end customers, with input costs rising sharply due to the Hormuz crisis.
- The company faces significant uncertainty regarding raw material availability and pricing, with base oil prices remaining volatile and supply constraints persisting.
- The EV charging (Tirex) business had a subdued quarter due to slow government depot orders, with most growth expected only in the second half of the year.
- The company anticipates a seasonally weaker Q2 due to the monsoon, which could impact demand and growth momentum.
- The unprecedented price increases in the B2C segment may not be fully sustainable, and there is a risk of demand destruction or down-trading by consumers.
- The company's margin guidance of 12-14% is under pressure in the current inflationary environment, with percentage margins potentially dilutive as top-line grows faster than per-liter profitability.
Ladies and Gentlemen, good day and welcome to Gulf Oil Q1 FY27 Earnings Conference Call.
(Operator Instructions)
I now hand the conference over to Mr. Probal Sen from ICICI Securities.
Thank you and over to you, sir.
Thank you, operator.
Welcome everyone to this post Q1 FY27 call to discuss Gulf Q1 results. With us, we have senior members of the management, including Mr. Ravi Shamlal Chawla. the Ministry Director and CEO, and Mr. Manish Gangwal, overtime director and the CFO of the company.
As usual, we first start off with a briefing on the results and output from the management and then go into an interactive Q&A session.
So without further ado, I'll hand over to the management. Over to you, sir.
&
Thank you.
Good day, good afternoon, good evening everyone. It is a pleasure to invite you to this quarter one
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