Gandhar Oil Refinery reported a stellar Q2 FY27, with consolidated revenue rising 73% YoY to INR 1,847 crore and PAT soaring 368% to INR 186 crore. Growth was driven by strong volume increases in the PIO segment and higher realizations, despite a one-time INR 21 crore exceptional loss from flooding at its Silvassa unit. Management remains optimistic about sustaining margins for the remainder of the fiscal year.
Gandhar Oil Refinery Q2 FY27 Earnings Report
Revenue: INR 1,847 Crore (up 73% YoY)
PAT: INR 186 Crore (up 368% YoY)
Reader Takeaway: Strong volume growth and high realizations drove profits, despite a one-time flooding loss and geopolitical risks.
What just happened
Gandhar Oil Refinery (India) Ltd delivered significant growth in its Q2 FY27 results. Consolidated revenue climbed to INR 1,847 crore, a 73% increase from the same period last year. The company’s bottom line saw even sharper improvement, with PAT hitting INR 186 crore compared to INR 40 crore in Q2 FY26. This performance was achieved despite an exceptional charge of INR 21 crore recorded due to flooding at the company’s Silvassa unit 2 in July 2026.
Why this matters
The jump in profitability is largely attributed to favorable index-linked pricing and improved operational efficiency. The company reported a gross margin spread of INR 29,128 per kiloliter (kl), up from INR 9,000 per kl in Q2 FY26. The EBITDA margin expanded to 15.6%, compared to 6.2% in the previous year's corresponding quarter, signaling that the company is effectively capturing value amidst fluctuating oil market conditions.
Operational Performance
The company has successfully expanded its consolidated installed capacity to 838,637 kiloliters. Standalone capacity utilization stands at 82%, while consolidated utilization is approximately 61%. A key highlight was the 23% volume growth in the Performance Industrial Oil (PIO) segment, which benefited from strong demand from the power and rubber industries. Meanwhile, the balance sheet has strengthened, with consolidated borrowings reduced to INR 85 crore as of September 30, 2026.
Risks to watch
Management highlighted that geopolitical instability in West Asia remains a primary concern. Potential disruptions to shipping and logistics could impact operations at the company’s UAE-based Texol unit. Furthermore, investors should track the volatility in base oil supply-demand dynamics and associated freight and insurance costs, which the company is currently passing through to its customers.
What to track next
Management has expressed confidence in maintaining current margin run rates throughout Q3 and Q4. Monitoring for any escalation in regional tensions in West Asia and updates on capacity utilization levels will be crucial for assessing the sustainability of this growth trajectory.