Gulf Oil Lubricants India Limited: Fueling Growth and Navigating the Future in Q2 & H1 FY26

Gulf Oil Lubricants India Limited, a prominent player in India's lubricant market, has reported a robust performance for the second quarter and first half of the financial year 2025-26. Despite a seasonally impacted quarter and an uneven monsoon pattern, the company demonstrated resilience, delivering strong operational and financial results in line with its strategic objectives. The management highlighted consistent outperformance against industry volume growth rates and significant strides in its diversified business segments, particularly in the burgeoning EV value chain.

For Q2 FY26, Gulf Oil Lubricants (Consolidated) recorded a revenue from operations of INR 966.77 Crore, marking an impressive 11.90% year-on-year growth. The first half (H1 FY26) saw revenue climb to INR 1983.23 Crore, a 12.81% increase over the previous year. This strong topline performance was complemented by a healthy EBITDA growth of 9.44% in Q2, reaching INR 117.51 Crore. However, Profit After Tax (PAT) growth was more modest at 1.18% in Q2, primarily due to mark-to-market (MTM) forex losses amounting to INR 6.2 Crore, stemming from sharp rupee depreciation. Despite this, H1 FY26 PAT grew by 7.09% to INR 179.13 Crore, reflecting an improved product and segment mix.

Financial Snapshot: Q2 & H1 FY26 (Consolidated, INR Crore)

The company's core lubricants business continued its trajectory of outperforming the industry, achieving a volume growth rate 2-3 times higher than the market. This was driven by strong momentum in the B2C segment, particularly in personal mobility, and encouraging traction in rural markets, led by the agri sector. The OEM segment recorded its highest-ever quarterly volume, supported by robust performance in Agri OEMs and existing partnerships. AdBlue volumes also saw significant growth, increasing by 24% in Q2, reaching 36,000 KL, and contributing to a 10% growth in H1.

Strategic Thrusts and Future Readiness

Gulf Oil Lubricants is actively pursuing its 'Unlock 2.0' broader theme and 'SPARK' internal execution theme, focusing on accelerating growth across segments, premiumization, and transforming into a future-ready organization. A key highlight of this strategy is the significant progress in the EV value chain. The EV charger subsidiary, Tirex, closed H1 with a topline of INR 42 Crore, marking a substantial 75% growth. The Board's approval to increase its stake in Tirex by 14% to 65% underscores the strategic importance and confidence in this segment's long-term potential, with a target of INR 300-400 Crore top line in 3-4 years. The company's investments in Indra Technologies (UK-based slow AC charger) and TechPerspect (EV SaaS provider Electreefi) further solidify its position in the evolving e-mobility landscape.

Product innovation remains a core focus, with the launch of new Gulf Syntrac variants—fully synthetic, high-performance engine oils for premium motorcycles, featuring Ester Technology and API SP certification. The 'M-Power' program, designed to connect with mechanics nationwide, is fostering strong relationships and driving demand generation, building brand advocacy at the grassroots level. Furthermore, the company's participation in key industry exhibitions like IPI Plastotech and ACMEE in Chennai demonstrates its commitment to engaging with stakeholders in the industrial B2B segment.

Market Dynamics and Outlook

Management noted that the recent GST reforms announced by the Government are a positive step towards boosting overall consumption and demand in the automotive sector. This, coupled with a strong festive season and stable macroeconomic conditions, sets the stage for sustained growth in the lubricants business. The company expects the positive momentum to reflect in continued growth, especially in H2 FY26. While input cost pressures and rupee depreciation posed challenges, the company's focus on cost and margin management initiatives, along with premiumization efforts, helped maintain EBITDA margins at 12.4%.

Gulf Oil Lubricants India Limited's commitment to excellence was further recognized by Deloitte India, which named it one of 'India's Best Managed Companies 2025'. This prestigious award acknowledges the company's outstanding leadership, strategic clarity, operational strength, innovation, and commitment to culture and sustainable growth. This recognition validates Gulf Oil's remarkable journey as an all-round player consistently outperforming in a rapidly evolving and competitive landscape.

Sustained Growth and Strategic Clarity

Gulf Oil Lubricants India Limited continues to demonstrate strategic clarity and disciplined execution. The company's ability to consistently grow its core lubricants business at 2-3 times the industry rate, coupled with its proactive investments in the EV value chain, positions it well for future opportunities. Despite short-term financial headwinds like forex volatility, management's focus on operational efficiency, product premiumization, and robust distribution networks ensures sustained growth and stakeholder value creation. The outlook remains encouraging, with strong demand expected in H2, driven by festive season, rural pickup, and government reforms, reinforcing investor confidence in its long-term vision.