What’s new

• FY26 standalone revenue grew 31.6% to ₹375 cr, with PAT up 23.4% to an EPS of ₹10.3.
• Won a ₹35 crore, three-year contract from ONGC and received DRDO technology transfers for defence-grade lubricants.
• Management guided for FY27 volume growth of 20-25% and EBITDA growth of 30-35%.

Why it matters

Arabian Petroleum is pivoting to higher-value products, and the ONGC win and DRDO deal validate the strategy. The catch is that margins were crushed to 4% in FY26. The guidance for a sharp EBITDA recovery hinges on working capital normalisation in H1 FY27 and successful execution of the new contracts.

What we’re watching

• Whether the ONGC contract volume ramps as planned, given the company's market cap is just ₹70 cr.
• If EBITDA margins recover in H1 FY27 as management targets.
• Revenue contribution from the newly acquired Lavisa Technologies subsidiary.

The full read

Arabian Petroleum's FY26 results tell two stories. The first is growth: revenue jumped 31.6% to ₹375 crore, volumes climbed 21% to 24,200 MT, and it won a ₹35 crore contract from ONGC, its first government order. The second is a margin hit. EBITDA margins collapsed from 6% to 4%, squeezed by commodity inflation and a strategic inventory build. The company's market cap is just ₹70 crore, making the ONGC win worth nearly 9% of last year's revenue. Management is now guiding for a sharp recovery, forecasting 20-25% volume growth and 30-35% EBITDA growth in FY27. This hinges on working capital normalisation in H1 and the successful ramp of the new DRDO technology transfer for defence-grade lubricants. Lavisa Technologies, acquired in December 2025, should add ₹8-10 crore in revenue. The key test is whether margins can bounce back from a base of 4%.

Primary source: NSE