Gandhar Oil Refinery India Ltd has released its quarterly financial results while providing a comprehensive update on operational challenges stemming from ongoing geopolitical tensions in the Middle East. The company, which is the largest manufacturer of white oils in India and among the top five players globally, operates manufacturing facilities across three locations with a combined annual installed capacity of 597,403 KL.

Financial Performance Overview

The company's latest financial results demonstrate resilience despite challenging market conditions:

Overseas sales constitute approximately 45% of the company's consolidated sales, highlighting its significant international presence across 100+ countries.

Operational Challenges and Market Pressures

Gandhar Oil Refinery has outlined several key risks affecting its operations due to current geopolitical developments:

The company's UAE facility, a 50.1% subsidiary located in Sharjah, maintains optimum inventory levels and continues domestic sales operations, though extended conflict could impact raw material supplies.

Strategic Pricing and Supply Chain Adaptations

The company has implemented comprehensive mitigation strategies to address these challenges. Gandhar maintains adequate inventory levels following established policies to cater to foreseeable future orders. The company leverages index-linked pricing mechanisms and pass-through contracts, enabling price adjustments to customers when base oil costs increase. Regular price list revisions help manage cost fluctuations effectively.

For forex risk management, the company employs established policies and benefits from natural hedging through overseas sales operations. Additionally, Gandhar has broadened its supplier base across additional geographical locations and maintains long-term contracts with suppliers using mutually agreed pricing formulas.

Management Outlook

The company expressed confidence in its risk management framework's ability to ensure operational continuity and growth despite geopolitical uncertainties. Management emphasized their commitment to transparent stakeholder communication and continuous monitoring of the evolving situation, with plans to share any material developments as they occur.

Gandhar oil refinery (India) Ltd has disclosed to stock exchanges that it received a GST summons on March 04, 2026, requiring its appearance before tax authorities for an inquiry related to certain business transactions. The company made this disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

GST Summons Details

The summons was issued under Section 70 of the Central Goods and Services Tax Act, 2017, by Vikendra Kumar Meena, Superintendent/Appraiser/Senior Intelligence Officer at GST Bhavan, RCP Compound, Vapi. The company received the summons via email on March 03, 2026, though the physical copy had not been received at the time of disclosure.

Nature of Inquiry

The GST inquiry specifically focuses on the company's transactions with M/s Maruti Petroleum, which holds GSTIN: 24MQOPS5743L1ZT. The summons requires Gandhar Oil Refinery to:

• Tender a statement regarding the inquiry
• Submit all documents related to transactions with M/s Maruti Petroleum
• Provide evidence and produce relevant documents under the company's possession or control

The company can appear either in person or through an authorized representative at the scheduled hearing.

Regulatory Compliance and Impact Assessment

In its disclosure to BSE Limited and National Stock Exchange of India Limited, Gandhar Oil Refinery emphasized that the summons does not allege any specific violations or contraventions. The company stated that since the inquiry is at a preliminary stage, it cannot determine the financial impact in monetary terms at this time.

Legal Framework and Consequences

The summons carries significant legal weight, as the inquiry is deemed a judicial proceeding under sections 229 and 267 of the Bharatiya Nyaya Sanhita, 2023. Non-compliance with the summons constitutes an offence punishable under sections 208 and 210 of the same act. This underscores the mandatory nature of the company's appearance before the GST authorities.

The company has assured stakeholders that it will comply with all regulatory requirements and has provided comprehensive details as mandated under the amended Regulation 30 of SEBI regulations, along with the SEBI Master Circular dated January 30, 2026.