Gandhar Oil Refinery (India) Ltd has resumed operations at its manufacturing facility located in Silvassa, Dadra and Nagar Haveli, U.T. – 396230, following a period of disruption caused by unprecedented heavy rainfall and flood-like conditions. The company made this disclosure to the stock exchanges on August 04, 2026, in continuation of its earlier intimation dated July 24, 2026, filed pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Restoration Measures Undertaken

The company has undertaken a series of measures to restore normal functioning at the Silvassa facility. According to the regulatory filing, necessary cleaning, inspection, repair, and remedial measures have been completed to ensure safe and smooth functioning of the plant. The company stated it is closely monitoring the situation to achieve full normalisation of operations.

The key details disclosed under Regulation 30 of the Listing Regulations are summarised below:

Insurance Coverage and Damage Assessment

Gandhar Oil Refinery has confirmed that the incident is covered under its existing insurance policy and has been duly intimated to the insurance company. The quantum of loss or damage, if any, arising from the flood-like conditions is currently under evaluation. The company has not disclosed any specific financial impact at this stage, as the assessment remains ongoing.

Regulatory Disclosure

The filing was submitted in compliance with the SEBI circular bearing reference number HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, which mandates listed entities to disclose disruptions to operations caused by natural calamities, force majeure events, or similar occurrences. The disclosure was signed by Binal Khosla, Company Secretary and Compliance Officer (Mem. No.: A29802), on August 04, 2026.

Gandhar Oil Refinery delivered its strongest financial performance in company history during the quarter ended June 30, 2026 (Q1 FY27), reporting a record profit after tax (PAT) of ₹206 crore. This represents a 688% year-on-year increase from ₹26 crore in Q1 FY26 and exceeds the total profit generated in the entire previous fiscal year. The exceptional results were driven by a sharp expansion in gross margin spreads to ₹28,145 per kilolitre and a 92% year-on-year rise in consolidated revenue to ₹1,732 crore. Management attributed the outperformance to agile sourcing strategies amid geopolitical disruptions in the Middle East, disciplined inventory management, and robust demand across personal care and industrial segments. The Board has declared an interim dividend of 100% of the face value of shares.

The earnings call transcript, released on July 28, 2026, pursuant to Regulation 30 of the SEBI Listing Regulations, provided detailed insights into the operational drivers. Joint Managing Director Aslesh Parekh and Chief Financial Officer Indrajit Bhattacharyya highlighted that while the operating environment was challenging due to Strait of Hormuz tensions and supply chain volatility, the company’s diversified sourcing network allowed it to capitalize on elevated realizations. The disclosure ensures transparency regarding the firm’s initial performance in the new fiscal year, allowing investors to review strategic updates directly from leadership.

Financial Performance Highlights

The financial metrics for Q1 FY27 reflect significant growth across all key parameters compared to both the corresponding quarter last year and the preceding quarter (Q4 FY26).

Management noted that gross margin spreads expanded significantly from approximately ₹8,274 per kilolitre in Q1 FY26 to ₹28,145 per kilolitre in Q1 FY27. This improvement was supported by favorable market conditions, disciplined sourcing, and effective inventory management. CFO Indrajit Bhattacharyya emphasized that these spreads should be viewed in the context of exceptional market conditions but expressed confidence that margins would remain at stellar levels for the next one to two quarters.

Operational Drivers and Segment Growth

The Personal Care, Healthcare, and Performance Oil (PHPO) segment remained the primary growth engine, registering an 18% year-on-year increase. This segment accounted for over 50% of total sales. The Process and Insulating Oil (PIO) business also performed robustly, growing 28% year-on-year, driven by healthy demand from transformer, power, and rubber manufacturers. Exports contributed approximately 51% of consolidated revenue, up from 37% in the previous year, with export volumes increasing by 54% year-on-year. The company operates a fungible production capacity across its three plants, which were utilized at 97% on a two-shift basis during the quarter.

Geopolitical tensions in the Middle East led to supply constraints and delayed shipments from key suppliers like Saudi Aramco. However, Gandhar Oil mitigated these risks by diversifying sourcing to South Korea and domestic producers. The subsidiary, Texol, located in the Hamriyah Free Zone, Sharjah, faced temporary operational impacts due to regional supply disruptions but maintained business continuity through regional sourcing agility.

What the Numbers Show

The divergence between volume growth (8% YoY) and revenue growth (92% YoY) underscores that the primary driver of this quarter’s performance was price realization rather than volume expansion. With EBITDA margins expanding from 5.1% to 16.2%, the company successfully passed on higher input costs to customers while benefiting from supply-side constraints in the global base oil market. The debt-free stand-alone balance sheet, combined with strong cash generation, provides significant financial flexibility. Management indicated that internal accruals would support future capital expenditure, including potential capacity expansions, without relying heavily on external term lending. The declaration of an interim dividend signals confidence in sustained cash flows despite the volatile operating environment.