Gandhar Oil hits 20% upper circuit after record Q1 profit, margin more than doubles

Shares of Gandhar Oil Refinery (India) hit the 20% upper circuit on Thursday, July 23, after the company reported a sharp sequential improvement in earnings for the June quarter. The rally marked the stock's biggest single-day gain since its listing in 2023.

On Wednesday, the company reported a standalone net profit of ₹179 crore for the first quarter of FY27

, more than four times higher than ₹44.1 crore it reported in the previous quarter.

Revenue grew 71.2% sequentially to ₹1,591 crore from ₹929 crore, while Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) surged to ₹249.2 crore from ₹65.5 crore. EBITDA margin expanded to 15.7% from 7% in the March quarter.

On a consolidated basis, Gandhar Oil reported its highest-ever quarterly performance. Revenue rose 92% year-on-year to ₹1,732 crore, while EBITDA increased more than six-fold to ₹281 crore, with margin improving to 16.2%. Net profit came in at a record ₹206 crore, up 689% year-on-year, while earnings per share stood at ₹19.65.

The board also declared an interim dividend of ₹2 per equity share, equivalent to 100% of the face value.

The company attributed the strong performance to agile sourcing, disciplined inventory management and a favourable product mix despite volatility in crude oil prices and geopolitical tensions in West Asia.

Its Personal Care, Healthcare & Performance Oils segment contributed 54% of consolidated revenue, while exports accounted for 51% of revenue during the quarter.

Management said the company continues to operate with an effectively debt-free balance sheet and plans to fund future capacity expansion through internal accruals.

It also outlined growth plans focused on expanding its healthcare and consumer business, increasing its international presence, moving further up the value chain through contract manufacturing, and adding capacity across its existing manufacturing locations.

Shares of the company jumped 20% and hit the upper circuit at ₹283.42 on Thursday. The stock has risen 57% in the past month and nearly 74% over the last six months.