Gulf Oil Lubricants India Ltd. (GOLI) reported an 8.5% year-on-year rise in EBITDA to INR 1.35bn for the fourth quarter of FY26, supported by strong volume growth across its mobility and business-to-business segments. However, profit after tax slipped 1.7% to INR 0.9bn as higher input costs weighed on margins.
The company’s EBITDA margin narrowed by 60 basis points year-on-year to 13%, broadly in line with analyst expectations. Rising costs of base oil, packaging materials and adhesives, coupled with a weaker Indian rupee, offset gains from premiumisation and an improved product mix.
Total product volumes rose 11.1% year-on-year to 85 million litres during the quarter. Core lubricant volumes increased by 11%, driven by strong demand in passenger car motor oils, agriculture and industrial segments. AdBlue volumes also climbed 8.1% to 40 million litres.
Gulf Oil said it remained on course to outperform broader industry growth over the coming years. The company is expanding its distribution network, increasing brand spending and launching new products to strengthen its market position. Capacity expansion projects at its Chennai and Silvassa plants are expected to be completed by the fourth quarter of FY27.
Despite near-term pressure from rising crude-linked input costs, analysts remain optimistic about the company’s medium-term outlook.
Crude oil prices surged from around USD 65 per barrel at the end of February 2026 to above USD 100 per barrel in March, pushing up procurement costs for imported base oil, which accounts for nearly 80% of Gulf Oil’s requirements.
Analysts expect EBITDA margins to remain within the company’s target range of 12–14% over the next two years, aided by premiumisation, pricing actions and new product launches. The stock continues to be viewed favourably, with a maintained “Buy” rating and revised target price of INR 1,488.
