Gandhar Oil Refinery (India) Ltd – Q3 FY26 ₹1,167 Cr quarterly revenue, 67.6% PAT jump, yet ROE stuck at single digits

1. At a Glance – “Looks Global, Earns Local Returns”

Gandhar Oil Refinery (India) Ltd, currently chilling at ₹163, carries a market cap of ₹1,588 Cr, trades at a P/E of ~14.9, and pretends to be a global FMCG ingredient supplier while behaving financially like a mid-cycle commodity refiner on most days.

Latest quarter (Q3 FY26) came in hot:

• Revenue: ₹1,167 Cr (+16.1% YoY)
• PAT: ₹34.3 Cr (+67.6% YoY)
• OPM: 5%
• EPS (Q3): ₹3.31

Stock is up 19.1% in 3 months, but still down ~15% YoY, which tells you markets are confused, not convinced.

Exports form 85% of revenue, customers span 100+ countries, and yet ROCE is 10.6% and ROE is just 6.65%. That’s not luxury skincare economics, that’s bulk chemicals with a marketing filter.

So the big question:
👉 Is Gandhar a misunderstood global niche champion… or just a volume-led refiner with good passport stamps?

Let’s dissect.

2. Introduction – The Vaseline Economy

Gandhar Oil Refinery (India) Ltd was incorporated in 1992 and built its empire quietly—not on crude oil headlines, but on white oils.

White oils are boring.
They don’t explode, don’t stink, don’t trend on Twitter.
But they sit inside:

• baby oils
• cosmetic creams
• OTC pharma
• petroleum jelly
• healthcare lubricants

Basically, products where contamination can get you sued into oblivion.

That’s Gandhar’s moat: purity + consistency + regulatory approvals.

India market share in white oils? 26.5%
Global market share? 9.6%
Top 5 globally? ✔️

Sounds sexy.
But then why are margins stuck at 4–6%, ROE mediocre, and cash flows erratic?

Because Gandhar isn’t selling luxury brands.
It’s selling high-volume, low-margin, compliance-heavy oils where scale saves you, but capital efficiency haunts you.

And Gandhar has chosen exports + volume + capacity expansion as religion.

Is that