Gandhar Oil Refinery (India) Ltd delivered robust financial performance in the third quarter of FY26, reporting significant growth across key metrics driven by strong domestic demand and strategic focus on high-margin products.

Financial Performance Highlights

The company's quarterly results demonstrated strong operational efficiency with substantial improvements in profitability and revenue generation.

Revenue from operations for Q3 FY26 stood at ₹1,167 crore, representing sequential growth from ₹1,059.9 crore reported in Q2 FY26. The company's EBITDA margin improved to 5.0% from 4.2% in the corresponding quarter of the previous year, reflecting enhanced operational efficiency.

Nine-Month Performance Overview

The company's nine-month performance for the period ending December 31, 2025 showcased consistent growth momentum across operational and financial parameters.

Revenue Composition and Product Mix

The company's diversified product portfolio demonstrated balanced contribution across segments, with PHPO products maintaining leadership position.

PHPO remained the leading revenue contributor, accounting for 50% of total revenue, driven by strong traction in personal care and healthcare applications. This strategic focus on high-margin PHPO products supported the company's improved profitability metrics.

Management Commentary

Aslesh Parekh, Joint Managing Director, highlighted the company's resilient performance despite challenging external conditions. He emphasized the sustained domestic demand and strategic focus on high-margin PHPO products as key drivers of the strong Q3 FY26 performance. The management expressed optimism about domestic demand trends and expected steady improvement in international logistics operations.

Market Performance

Shares of Gandhar Oil Refinery (India) Ltd closed at ₹163.15 on the BSE, gaining ₹4.00 or 2.51% during the trading session, reflecting positive investor sentiment following the strong quarterly results.

Crude oil prices have stabilized within a narrow trading range of $60-64 per barrel as competing market dynamics create a balanced environment for energy commodities. The current price stability reflects the interplay between supportive currency movements and supply-side pressures that are keeping significant price movements in check.

Dollar Weakness Provides Price Support

A weaker US dollar is serving as a key supportive factor for oil prices in the current market environment. When the dollar weakens, crude oil becomes more affordable for international buyers using other currencies, typically leading to increased demand and price support. This currency dynamic is helping to establish a price floor for crude oil within the current trading range.

The relationship between dollar strength and oil prices remains a critical factor for energy market participants, as currency fluctuations can significantly impact the purchasing power of international buyers and overall market demand patterns.

Rising Supply Levels Limit Price Gains

Despite the supportive currency environment, oil prices are facing headwinds from increasing supply levels across multiple regions. Rising US production continues to add to global supply availability, while international production increases are also contributing to higher overall market supply.

These supply dynamics are effectively counterbalancing the positive impact of dollar weakness, resulting in the current price stability rather than significant upward or downward movements.

Market Balance and Trading Range

The current $60-64 trading range represents a market equilibrium where bullish and bearish factors are relatively balanced. This price stability suggests that neither supply concerns nor currency support are strong enough to drive prices decisively in either direction.

Market participants are closely monitoring both supply developments and currency movements to gauge potential shifts in this balance. The narrow trading range indicates that significant new developments in either supply fundamentals or currency markets would be needed to break oil prices out of their current stable pattern.

The energy market's current state reflects the complex interplay of global economic factors, with price stability emerging from the offsetting effects of supportive currency conditions and rising supply availability.