BTTV Exclusive | Gulf Oil MD Ravi Chawla outlines FY27 roadmap after strong Q1 show

Gulf Oil Lubricants India reported a strong start to FY27, with management saying it expects to continue growing at two to three times the lubricant industry average. The company said market share gains, premium products, capacity expansion and newer businesses such as EV charging and data centre cooling solutions should support growth, even as raw material costs remain elevated and demand typically moderates in the monsoon quarter.

Speaking to Business Today TV, Ravi Chawla, Managing Director and CEO of Gulf Oil Lubricants India Ltd, said the company remained confident of sustained outperformance. He said Gulf Oil sees premiumisation, electric mobility, industrial lubricants and emerging applications such as data centre cooling as the next phase of growth alongside its core lubricants business.

In the first quarter of FY27, standalone net profit rose 31.9 per cent year-on-year to Rs 127.5 crore, while revenue from operations increased 30.6 per cent to Rs 1,327 crore. EBITDA grew nearly 30 per cent to Rs 166 crore. The company also posted volume growth of 17 per cent, ahead of the industry’s estimated 3-4 per cent expansion, led by demand across automotive, agriculture and industrial lubricant segments.

Chawla said the quarter’s performance came despite supply chain disruptions linked to geopolitical tensions in West Asia. He said disruptions in base oil and additive supplies created a difficult operating environment, but Gulf Oil was able to secure supplies and respond quickly, helping it maintain uninterrupted deliveries to OEMs, workshops and infrastructure customers. “As a leading private-sector lubricant player, supply reliability became a key differentiator during the quarter,” he said.

The company also took multiple price hikes to offset sharp increases in raw material costs. Despite continued cost escalation through the quarter, Gulf Oil maintained EBITDA margins of around 13 per cent, in line with its long-term guidance.

Chawla said the company continues to guide for medium-term EBITDA margins of 12-14 per cent and expects strong execution in both automotive and industrial lubricants. He added that while July to September is usually a softer period because of the monsoon, agricultural demand remains healthy and continues to support lubricant consumption.

On costs, management said raw material prices are likely to stay elevated for some time even though geopolitical concerns have eased somewhat. Chawla said base oil prices usually track crude oil but are also shaped by refinery operations and shipping logistics. He said disruption around the Strait of Hormuz has changed supply chains, creating a lag before prices normalise, and that meaningful cooling will depend on sustained normalisation in global crude movement and logistics.

To support future growth, Gulf Oil is expanding manufacturing capacity at its Silvassa and Chennai plants. The previously announced expansion is expected to raise capacity by nearly 70 per cent and be completed in the third and fourth quarters of FY27. Chawla said the added capacity would reduce dependence on three-shift operations and provide room for the company’s expected growth over the next two to three years.

Beyond lubricants, Gulf Oil said its EV charging subsidiary TAREX is gaining traction. The business generated around Rs 100 crore in revenue last year and has already become profitable. It makes fast chargers mainly for electric buses and commercial vehicle OEMs and is also expanding into passenger vehicle charging solutions.

Chawla said TAREX could grow to Rs 300-400 crore in revenue over the next three to four years, supported by rising EV adoption, capacity expansion and a wider product portfolio including AC chargers and charging infrastructure for fleet operators. The company estimated its market share in its targeted charging segments at 8-10 per cent.

Management also identified premium synthetic lubricants, industrial products and liquid cooling solutions for data centres as long-term opportunities. Gulf Oil said it has developed global products for liquid-cooled data centres and has started discussions with operators evaluating the technology.

The company is also assessing acquisition opportunities in mobility, industrial technologies and adjacent categories, after investments in TAREX, software platform Electrify and international mobility business Indra. Management said the focus would remain on profitable, technology-led businesses rather than cash-intensive ventures.

Overall, Gulf Oil said it expects to build on its strong first-quarter showing through continued industry outperformance, capacity expansion and growth in newer businesses, while keeping a close watch on raw material costs and supply chain conditions.