The specialty chemicals sector had a rough couple of years. Margins shrank, demand cooled, and investors suddenly discovered that “high-margin specialty” sometimes behaves like plain vanilla commodity.
Enter Gandhar Oil Refinery.
The company just posted ₹1,167 crore quarterly revenue, a neat 16% YoY growth, while still battling falling per-kiloliter margins and sluggish FMCG demand. Not bad for a business tied to cosmetics, pharmaceuticals, lubricants, and everything from hair cream to transformer oil.
Management insists this is merely a temporary industry cycle, not a structural crack in the model. Freight costs improved, exports remain strong, and sticky customers continue to reorder.
But the real intrigue lies beneath the headline numbers: shrinking spreads, export ambitions, and expansion whispers.
Read on—because the numbers get more interesting once you peel the layers.
2. At a Glance
Revenue ₹1,167 Cr – Up 16% YoY: White oils still flowing smoothly despite macro hiccups.
PAT ₹34 Cr – Up 70% YoY: Profit woke up compared to last year’s sleepy quarter.
EBITDA ₹59 Cr – Sequentially softer: Margin math reminding everyone this isn’t SaaS.
Exports ~45% of revenue – Global push: Gandhar selling white oils everywhere except maybe Antarctica.
Gross margin ₹7,271/kL – 12-quarter low: Even specialty chemicals aren’t immune to industry cycles.
PHPO segment 50% revenue – Sticky business: Cosmetics and pharma customers take years to onboard, but then rarely leave.
3. Management’s Key Commentary
“The global white oil market was valued around $3.6 billion in 2025 and expected to reach $4.66 billion.” (Translation: The market grows slowly, but steadily—no AI hype cycles here.) 😏
“Revenue for Q3FY26 stood at ₹1,167 crores, reflecting a healthy year-on-year improvement of 16%.” (Translation: Sales are growing even when margins are behaving like moody teenagers.)
“PHPO contributes around 50% of our total revenue.” (Translation: Cosmetics and pharma oils are the golden goose—sticky customers and better margins.)
“Entry to a PHPO customer can take seven to eight years.” (Translation: Landing a customer is painfully slow… but once you’re in, you’re basically family.)
“Around 35% of our business operates on price pass-through mechanisms.” (Translation: For a third of sales, raw material price swings are the customer’s headache, not ours.)
“Sharjah plant utilization is currently around 70-72%.” (Translation: Capacity exists, customers are coming—but approvals and accreditation take forever.)
“Exports contribute about 45% of total revenue.” (Translation: Gandhar isn’t just India’s white oil supplier anymore—it’s becoming a global one.) 🌍
4. Numbers Decoded
Source table
Metric
Q3 FY26
Commentary
Revenue
₹1,167 Cr
Strong YoY growth driven by volume and exports
EBITDA
₹59 Cr
Lower sequentially as spreads compressed
PAT
₹34 Cr
Big YoY jump from ₹20 Cr last year
Manufacturing Margin
₹7,271/kL
Lowest in 12 quarters
Export Share
~45%
International demand holding strong
PHPO Contribution
~50%
Core high-margin business
Installed Capacity
~6 lakh kL
Potential expansion coming
Sharjah Utilization
~70-72%
Still ramping up
Margins slipped mainly due to lower spreads and FMCG pricing pressure, though cost controls and freight normalization helped soften the
