Gulf Oil Lubric. Q1 FY27 Results (NSE: GULFOILLUB)
Signal: Growth reaccelerated
The read
Revenue surged 30.6% YoY to ₹1,327 Cr, with EBITDA margin holding at 14.5% despite raw material cost headwinds; net profit grew 28.5% YoY driven by operating leverage and volume growth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,327.21 Cr | 30.6% | 25.8% |
| EBIT | ₹173.15 Cr | 29.4% | |
| Net profit | ₹123.16 Cr | 28.5% | |
| EPS | ₹24.88 | 27.9% | |
| EBIT margin | 14.5% |
P&L walk
Revenue grew 30.6% YoY, the highest in recent quarters, while EBITDA margin contracted slightly by 23bps YoY to 14.5% as gross margin fell 120bps on higher raw material costs; operating cost control (employee and other expenses grew slower than revenue) limited the margin erosion, and PAT grew 28.5% YoY.
Key positives
- Revenue growth accelerated to 30.6% YoY, the fastest in at least six quarters.
- PAT grew 28.5% YoY to ₹123 Cr, outpacing the modest margin compression.
- Employee and other expense growth lagged revenue, indicating operating leverage.
- EBITDA margin remained healthy at 14.5%, with only 23bps YoY decline despite higher raw material costs.
Key concerns
- Gross margin contracted 120bps YoY as raw material cost % of revenue rose from 57.6% to 58.8%.
- Finance cost increased 40.7% YoY, though from a low base.
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