Gandhar Oil Refinery (India) Ltd Q1 FY26 – White Oils King with 26.5% Market Share, But OPM Just 4.2%: Global Don or Local Dukaan?
1. At a Glance
Gandhar Oil is that cousin who brags about foreign trips but lives on credit cards. The company has 26.5% market share in Indian white oil and 9.6% globally, exports 85% of revenue, and still struggles to keep operating margins above 5%. Latest quarter revenue was ₹903 Cr with profit of ₹26 Cr, down -15% YoY. Basically, it’s like being the topper of night tuition class but still failing JEE.
2. Introduction
Incorporated in 1992, Gandhar Oil thought “white oil” would be their ticket to becoming the Ambanis of skincare, pharma, and transformer oil. And to be fair, they did become one of the top 5 global players. But then reality hit harder than GST notices.
They supply to 4,000+ customers under the Divyol brand – from Vaseline to transformer manufacturers. Revenue mix screams FMCG influencer: Consumer 54%, Healthcare 14.5%, Others 31.5%. Nice diversification, but profits are more anorexic than Indian startups showing “adjusted EBITDA.”
The company loves expansions – Taloja +100,000 KL in FY24, Silvassa +80,000 KL ongoing, and UAE plant flaunting 2 lakh+ KL capacity. But while they keep pouring money into tanks, the tank of profitability leaks like a Bajaj Chetak carburettor.
So, what’s the catch? Is Gandhar the hidden gem, or just a middle-class uncle who can’t stop bragging about NRI relatives? Let’s find out.
3. Business Model – WTF Do They Even Do?
Imagine a chemist’s backroom + a petrol pump + an electrical godown = Gandhar.
PHPO (Personal care, Healthcare, Performance Oils): 47.1% revenue. White oils, waxes, petroleum jelly – basically anything that goes into your creams, ointments, and lip balms. If you’ve kissed someone wearing Vaseline, you’ve indirectly tasted Gandhar.
Lubricants (28.4%): Engine oils, industrial oils – keeps Bharat’s jugaadu factories and auto rickshaws alive.
PIO (9.3%): Transformer oil and rubber processing oil. Every time the power goes off in your society, blame DISCOMs – but Gandhar’s oil was there, chilling inside the transformer.
Channel partners (15.2%): Middlemen who take their cut faster than Bollywood producers.
Exports form 85% of sales, across 100+ countries. So while India only contributes 15%, Gandhar is busy flirting with Europe, Indonesia, and the US. Good for diversification, but risky – one customs penalty and there goes quarterly PAT.
4. Financials Overview
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
₹903 Cr
₹995 Cr
₹962 Cr
-9.2%
-6.1%
EBITDA
₹46 Cr
₹60 Cr
₹34 Cr
-23.3%
+35.3%
PAT
₹26 Cr
₹33 Cr
₹12 Cr
-21.2%
+116%
EPS (₹)
2.68
3.15
1.19
-14.9%
+125%
Commentary: Quarterly profit fell YoY, but doubled QoQ – like a student who failed prelims but scraped through finals. OPM is stuck around 4–5%, which is thinner than airline margins. At ₹145 CMP and EPS ₹7.7, stock trades at P/E ~18.8x, matching industry average – so no free lunch here.
