Gulf Oil hits record volumes, but plant expansions slip
The company posted a record ₹135 crore EBITDA, yet Chennai and Silvassa capacity projects are delayed by up to six months.
— 3 earlier stories on Gulf Oil Lubricants India Ltd. →What's new
- Quarterly EBITDA reached a record ₹135 crore on 45,000 KL of volume.
- Chennai and Silvassa plant expansions are delayed by one to two quarters.
- EV subsidiary Tirex crossed ₹100 crore in annual revenue.
Why this matters
Gulf Oil is managing extreme crude volatility by tightening price pass-throughs to 1-2 weeks, keeping margins in the 12-14% band. However, the capex delays suggest execution friction that could cap growth if the company cannot scale capacity as planned.
What we're watching
- Completion of the Chennai plant in Q3 FY27.
- Progress on data center cooling liquid proof-of-concept tests.
- Whether margins hold if crude oil remains at the high end of the $65-$120 range.
The full read
Gulf Oil Lubricants India reached a record quarterly EBITDA of ₹135 crore on volumes of 45,000 KL, capping off a year where it hit ₹4,000 crore in total revenue. To defend its 12-14% EBITDA margin band against crude oil prices that peaked at $120 per barrel, management tightened its price pass-through lag to just 1-2 weeks.
Execution is stalling.
Both the Chennai and Silvassa plant expansions are delayed by one to two quarters, with Chennai now expected in Q3 FY27 and Silvassa in Q4 FY27. While the EV subsidiary Tirex crossed the ₹100 crore revenue mark and the company is testing data center cooling liquids, these long-term bets do not offset the immediate friction in core capacity growth. The reliance on rapid price adjustments and inventory management to protect margins is working, but the capex delays introduce a clear execution risk that management must now navigate.
Questions answered
- How is Gulf Oil protecting its margins against volatile crude prices?
- The company reduced its price pass-through lag to 1-2 weeks. This allows it to maintain EBITDA margins within its 12-14% target band despite crude prices fluctuating between $65 and $120 per barrel.
- What is the status of the company's plant expansion projects?
- Both the Chennai and Silvassa projects are delayed by one to two quarters. Chennai is now slated for completion in Q3 FY27, while Silvassa is expected by Q4 FY27.
- How is the EV business performing?
- The EV subsidiary, Tirex, has surpassed the ₹100 crore revenue milestone for the year.
- What is the update on data center cooling liquids?
- The company has initiated proof-of-concept testing for specialized data center cooling liquids. This remains an early-stage project and is not a near-term revenue driver.
Story so far
All notes on GULFOILLUB →- 28 May 2026 · 1:34 PM IST Gulf Oil hits record volumes, but plant expansions slip
- 1d ago Gulf Oil Lubricants hits record revenue and EBITDA in FY26
- 1d ago Gulf Oil Lubricants hits ₹4,056 cr revenue, pays ₹51 dividend
- 1d ago Gulf Oil Lubricants hits ₹4,000 cr revenue, pays out ₹51 per share