Q1 2027 Gulf Oil Lubricants India Ltd Earnings Call

August 4, 2026

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Speaker #5: Ladies and gentlemen, good day and welcome to the Gulf Q1 FY27 earnings conference call. As a reminder, all participant lines will be in listen-only mode, and there will be no opportunity to ask questions after the presentation concludes.

Operator 2: Ladies and gentlemen, good day and welcome to Gulf Oil's Q1 FY27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then Zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Probal Sen from ICICI Securities. Thank you, over to you, sir.

Operator: Ladies and gentlemen, good day and welcome to Gulf Oil's Q1 FY 2027 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Probal Sen from ICICI Securities. Thank you, over to you, sir.

Speaker #5: Should you need assistance during this conference call, please signal an operator by pressing star, then zero, on a touch-tone phone. Please note that this conference is being recorded.

Speaker #5: I now hand the conference over to Mr. Probal Samal from ICICI Securities. Thank you, and over to you, sir.

Speaker #4: Thank you, operator. Welcome, everyone, to this post-Q1 FY27 call to discuss Gulf's Q1 results. With us, we have senior members of management, including Mr. Ravi Chawla, the Managing Director and CEO, and Mr. Manish Rangwal, Whole-time Director and the CFO of the company.

Probal Sen: Thank you, operator. Welcome, everyone, to this post Q1 FY27 call to discuss Gulf Q1 results. With us, we have senior members of the management, including Mr. Ravi Chawla, the Managing Director and CEO, and Mr. Manish Gangwal, our whole-time director and the CFO of the company. As usual, we first start off with a briefing on the results and updates from the management, then go into an interactive Q&A session. Without further ado, I'll hand over to the management. Over to you, sir.

Probal Sen: Thank you, operator. Welcome, everyone, to this post Q1 FY 2027 call to discuss Gulf Q1 results. With us, we have senior members of the management, including Mr. Ravi Chawla, the Managing Director and CEO, and Mr. Manish Gangwal, our whole-time director and the CFO of the company. As usual, we first start off with a briefing on the results and updates from the management, then go into an interactive Q&A session. Without further ado, I'll hand over to the management. Over to you, sir.

Speaker #4: As usual, we'll first start off with a briefing on the results and outlook from the management, and then go into an interactive Q&A session.

Speaker #4: So, without further ado, I'll hand over to the management. Over to you, sir.

Speaker #6: Thank you. Good day, good afternoon, good evening, everyone. It is a pleasure to invite you to this Q1 performance investor call. I am very happy to inform you that this quarter has really seen us performing at all-time highs on all fronts.

Ravi Chawla: Thank you. Good day, good afternoon, good evening, everyone. It is a pleasure to invite you to this Q1 performance investor call. Very happy to inform you that this quarter has really seen us performing in terms of all-time highs on all fronts. Last quarter, you may remember, we crossed a revenue of INR 1,000 crores. Very happy to share that this quarter, with all the execution agility and certainly managing the situation to the best in terms of focused attention, we've been able to cross our revenues and reach INR 1,300 plus crores. If you look at all the other parameters, including EBITDA and profits, significantly ahead of the last quarter, which was also on record for us. I think overall, starting FY27 on the strong momentum with the record performance is certainly satisfying for us.

Ravi Chawla: Thank you. Good day, good afternoon, good evening, everyone. It is a pleasure to invite you to this Q1 performance investor call. Very happy to inform you that this quarter has really seen us performing in terms of all-time highs on all fronts. Last quarter, you may remember, we crossed a revenue of INR 1,000 crores. Very happy to share that this quarter, with all the execution agility and certainly managing the situation to the best in terms of focused attention, we've been able to cross our revenues and reach INR 1,300 plus crores. If you look at all the other parameters, including EBITDA and profits, significantly ahead of the last quarter, which was also on record for us. I think overall, starting FY 2027 on the strong momentum with the record performance is certainly satisfying for us.

Speaker #6: Last quarter, you may remember, we crossed a revenue of ₹1,000 crore. Very happy to share that this quarter, with all the execution agility and certainly managing this situation to the best in terms of focused attention, we've been able to cross our revenues and reach ₹1,300-plus crore.

Speaker #6: If you look at all the other parameters, including EBITDA and profits, they are significantly ahead of the last quarter, which was also a record for us.

Speaker #6: So, I think overall, starting FY27 on this strong momentum with record performance is certainly satisfying for us. We saw the West Asia crisis and quite a volatile macro environment, cost environment, but with the focus on really executing well with agility, we have seen a very strong, volume-led profitable growth in this quarter.

Ravi Chawla: We saw the West Asia crisis and quite a volatile macro environment, cost environment. With the focus on really executing well with agility, we have seen a very strong volume-led profitable growth in this quarter. Volumes have grown 17% year-on-year. You may recall that last year we ended at 11%, and Q4 of last financial year was at 14%. Clearly for us, this quarter, we've been seeing that the way the entire business has been managed across all categories which have grown, have seen a very good result for us. Effective real market execution, supply chain solidity that has helped us, and proactive customer engagement. As mentioned to you, across all segments, B2C, OEM, and B2B, we have delivered good double-digit growth, which has given us these results.

Speaker #6: Volumes have grown 17% year on year. You may recall that last year we ended at 11%, and Q4 of last financial year was at 14%.

Speaker #6: But clearly for us, this quarter we've been seeing that the way the entire business has been managed across all categories, which have grown, has really seen a very good result for us.

Speaker #6: Effective real market execution, supply chain solidity that has helped us, and proactive customer engagement. And as mentioned to you, across all segments—B2C, OEM, and B2B—we have delivered good double-digit growth, which has given us these results.

Speaker #6: For us, really, if you look at it, the main things that were obviously challenging were the supply security, both from the customer point of view and the availability of raw materials, which were disrupted a bit because of the almost crisis.

Ravi Chawla: For us, if you look at the main things that were obviously challenging were the supply security, both from the customer point of view and the availability of raw materials, which were disrupted a bit because of the Strait of Hormuz crisis. We've seen that we've been able to manage this as a top priority, and we've ensured uninterrupted availability throughout this period, which has helped us. Not only the customers who are obviously buying from us, the OEMs, the channel partners, the retailers. The proactive approach that the team has used, of course, backed by great supply efficiency, supply solidity in terms of sourcing all the materials, we have been able to make this sort of crisis situation into an opportunity for all of us and optimized on the opportunities.

Speaker #6: We've seen that we've been able to manage this as a top priority, and we've ensured uninterrupted availability throughout this period. This has helped not only the customers—who are obviously buying from us—but also the OEMs, the channel partners, and the retailers. The proactive approach that the team has used, and of course, the great supply efficiencies and supply solidity in terms of sourcing all the materials, have backed this success.

Speaker #6: We have been able to make this sort of crisis situation into an opportunity for all of us, and really optimize on the opportunities. Not only have we been able to ensure supply security with our current OEMs, distributors, and customers, we've also been able to win new customers.

Ravi Chawla: Not only have we been able to ensure supply security with our current OEMs, distributors, customers, we've been able to also win new customers and optimize on all this. There was a lot of heightened apprehension from customers, and I think we've been able to reinforce our position as a reliable partner and supporting the customers, including new customers that got added on in many segments like infra. We have increased our share with customers and also in terms of retail, in terms of our customers, OEM, franchisee workshop, we have increased our share. The growth was broad-based. As I mentioned, we have seen growth across segments. In OEMs, we've continued to grow and strengthen our position. Double-digit growth in OEM franchise workshop was led by agriculture segment, where we have Mahindra and Swaraj, PCMO, and motorcycle, where we have Bajaj in OEM workshops.

Speaker #6: And really optimized on all this. There was a lot of heightened apprehension from customers, and I think we have been able to reinforce our position as a reliable partner.

Speaker #6: And really supporting the customers, including new customers that have got added on in many segments like infra. We have increased our share with customers, and also in terms of retail, in terms of our customers' OEM franchisee workshops, we have increased our share.

Speaker #6: The growth was broad-based, as I mentioned. We've seen growth across segments. In OEMs, we've continued to grow, and to strengthen our position, double-digit growth in the OEM franchisee workshops was led by the agriculture segment, where we have Mahindra and Swaraj PCMO, and the motorcycle segment, where we have Bajaj in OEM workshops.

Speaker #6: In our B2C business, there has been very good double-digit growth, with PCMO (passenger car) leading it, and also gains in agriculture, commercial vehicles, and motorcycle.

Ravi Chawla: In our B2C, there has been a very good double-digit growth, with PCMO passenger car leading it, and also gains in agriculture, commercial vehicles, and motorcycle. In B2B, where we do business with industries, infrastructure, and mining, we have again seen growth across our customer base, also driven by new customer acquisitions as traction improved. Of course, this is an important segment for us. I think overall, the key numbers, lubes volume was at 48,000, again, a record for us. Previous high being 45,000 in the last quarter. It's followed by that 48,000. We have seen this high double-digit growth of 17%, which is over 3x the industry growth rate. Revenue, as I mentioned, up 33% at INR 1,320 crores. EBITDA was up 35% at INR 170 crores. Last quarter, we did again a highest of EBITDA, which was INR 135 crores.

Speaker #6: In B2B, where we do business with industries, infrastructure, and mining, we have again been seeing growth across our customer base, also driven by new customer acquisitions as traction improved.

Speaker #6: And of course, this is an important segment for us. So I think, overall, the key numbers—LOBS volume was at 48,000, again a record for us, with the previous high being 45,000 in the last quarter.

Speaker #6: So, followed by that, 48,000. And we have seen this high double-digit growth of 17%, which is over 3x the industry growth rate. Revenue, as I mentioned, is up 33% at 1,320.

Speaker #6: EBITDA was up 35% at ₹170 crores. Last quarter, we again achieved our highest EBITDA, which was ₹135 crores. So we have exceeded that, and I think with quite a sizable increase.

Ravi Chawla: We have exceeded that, and I think with quite a sizable increase. The margin also, which Manish will talk about later, we've been able to show a lot of operational resilience. There have been huge cost increases month-on-month for the last three to four months. We have managed to obviously proactively communicate that, explain that, and across all our different customer bases, we've been able to manage that. I think our stock solidity, which was there, we've been able to keep the margin at 13%, which is within the guided range. I think we have seen that momentum has been there for us in terms of all segments, and definitely the quarter has been a very, very fulfilling quarter for all of us in the team.

Speaker #6: And the margin also, which Manish will talk about later, we've been able to show a lot of operational resilience. There have been huge cost increases month-on-month for the last three to four months.

Speaker #6: We have managed to, obviously, proactively communicate that and explain that, and across all our different customer bases, we've been able to manage that. Plus, I think our stock solidity, which was there, we've been able to keep the margin at 13%, which is within the guided range.

Speaker #6: I think we have seen that momentum has been there for us in terms of all segments. And definitely, the quarter has been a very, very fulfilling quarter for all of us in the team.

Speaker #6: And we've been able to take it to a significantly high record level, which I think is also in line with the situation, which was supposed to be a sort of semi-crisis, being converted into a good opportunity for the organization.

Ravi Chawla: We've been able to take it to a significantly high record level, which I think is also in line with the situation, which was supposed to be a sort of a semi-crisis, been converted to good opportunity for the organization. Over to Manish to take us through a few numbers on the finance and other aspects. Manish, over to you.

Speaker #6: Over to Manish to take us through a few numbers on the finance and other aspects. Manish, over to you.

Speaker #7: Thanks, Ravi. Good afternoon, everyone. So, as Ravi highlighted, the quarterly volumes for Lubric and Core Lubricant were 48,000 KL, and AdBlue was at 40,000 KL.

Manish Gangwal: Thanks, Ravi. Good afternoon, everyone. As Ravi highlighted, the quarter volumes for lubricant core, lubricants were 48,000 KL and AdBlue was at 40,000 KL. With revenue growth of 32%, revenue closed INR 1,300 crore at INR 1,320 crore and EBITDA at INR 170 crore. The PAT was also highest ever at INR 127.5 crore, resulting in an EPS of INR 25 plus. All round, excellent, robust performance, and I think this is one of the best performance in the recent years by the company. We would like to also highlight that in a quarter which was a very tough quarter from all perspectives, especially the supply chain perspective, given the kind of crisis going on in the Middle East and the crude volatility, which impacted the quarter very severely from input cost perspective and availability, the crude at one point even touched $120 per barrel.

Speaker #7: And with revenue growth of 32%, revenue grew to ₹1,320 crores, and EBITDA was at ₹170 crores. The PAT was also highest ever at ₹127.5 crores.

Speaker #7: Resulting in an EPS of ₹25-plus. So, all around, excellent, robust performance. And I think this is one of the best performances in recent years by the company.

Speaker #7: And we would like to also highlight that in the quarter, which was a very tough quarter from all perspectives, especially the supply chain perspective, given the kind of crisis going on in the Middle East.

Speaker #7: And the crude volatility, which impacted the quarter very, very severely from an input cost perspective, and availability. The crude at one point even touched $120 per barrel.

Speaker #7: We have been able to manage our inventories well, and also proactively engage with our customers, as Ravi highlighted, on pricing discussions and price increases.

Manish Gangwal: We have been able to manage our inventories well and also proactively engage with our customers, as Ravi highlighted, on pricing discussions and price increases. I think in this period of crisis, even our OEMs, partners, customers, we are also looking for more from supply security perspective and have been very cooperative. Hence, we have been able to manage our margins in a similar band of around 13%, 12.9%, which in a tough quarter is very heartening. Although you can see that at gross margin level, there is some dip still because it takes time to pass on the cost increases to the end customer, and there is a time lag between the same. Eventually, we have been able to manage some of our costs and deliver an excellent quarter.

Speaker #7: And I think in this period of crisis, even our OEM partners and customers are also looking for more from a supply security perspective, and have been very cooperative.

Speaker #7: And hence, we have been able to manage our margins in a similar band, around 13%, 12.9%, which, in a tough quarter, is very, very heartening.

Speaker #7: Although you can see that at the gross margin level, there is still some dip because it takes time to pass on the cost increases to the end customers.

Speaker #7: And there is a time lag between the same. But eventually, we have been able to manage some of our costs and deliver an excellent quarter.

Speaker #7: So, we would term it as volume-led profitable growth for the quarter; this is what we have been able to achieve. There is a lot of emphasis on supply security.

Manish Gangwal: We would term it as a volume-led profitable growth for the quarter is what we have been able to achieve. There are a lot of emphasis on the supply security. With that briefing overall, we would like to take few questions. Thank you.

Speaker #7: With that, briefing overall, we would like to take a few questions. Thank you.

Speaker #1: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may do so by pressing the star and one on the touch-screen telephone.

Operator 2: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Disha Chambria from Trinita Asset Managers. Please go ahead.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Disha Chambria from Trinita Asset Managers. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use a handset while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Disha Jumria from Trinita Asset Managers.

Speaker #1: Please go ahead. Hello, Disha.

Disha Chambria: Good afternoon.

Disha Chamriya: Good afternoon.

Operator 2: Hello, Disha.

Operator: Hello, Disha.

Disha Chambria: Am I audible?

Disha Chamriya: Am I audible?

Speaker #7: No, your voice is weak, ma'am. If you could please speak a bit louder.

Manish Gangwal: No, your voice is weak, ma'am. If you can slightly speak louder, please.

Speaker #3: I hope I'm not here now.

Disha Chambria: I hope I'm more clear now.

Disha Chamriya: I hope I'm more clear now.

Speaker #7: Yes. Please go ahead.

Manish Gangwal: Yes. Please go ahead.

Speaker #3: Yes, sir. Thank you for the opportunity. My first question was, how is the mix between OEM and after-sales evolved during quarter one? And as OEM relationship deepens, how do you balance the volume growth with profitability, given that the different depends on the margin profiles of these both channels?

Disha Chambria: Yes, sir. Thank you for the opportunity. My first question was, how has the mix between OEM and after-sales evolved during Q1? As OEM relationship deepens, how do you balance the volume growth with profitability, given that the difference in the margin profiles of these both channels?

Disha Chamriya: Yes, sir. Thank you for the opportunity. My first question was, how has the mix between OEM and after-sales evolved during Q1? As OEM relationship deepens, how do you balance the volume growth with profitability, given that the difference in the margin profiles of these both channels?

Speaker #7: So, as Mr. Ravi highlighted in his opening remarks, all our segments have grown, and even B2C, OEM, B2B, marine segment—every segment has delivered double-digit growth.

Manish Gangwal: As Mr. Ravi highlighted in his opening remarks, all our segments have grown. Even B2C, OEM, B2B, marine segment, every segment has delivered double-digit growth, and that is the reason that our overall mix in terms of our sales mix, customer mix, more or less remains the same, because B2C and all the segments have delivered an excellent double-digit growth. For the quarter also, we have been in the similar range of around 45% B2B and 55% B2C sales.

Speaker #7: And that is the reason that our overall mix, in terms of our sales mix and customer mix, more or less remains the same. Because B2C and all the segments have delivered excellent double-digit growth.

Speaker #7: So for the quarter also, we have been in a similar range, with around 45% B2B and 55% B2C sales.

Speaker #3: Got it, sir. My next question was: Could you please update us on the scale and profitability of the AdBlue business, and do you see the existing business, such as EV solutions, becoming a meaningful contribution to earnings over the medium term?

Disha Chambria: Got it, sir. My next question was, could you please update on the scale and profitability of the AdBlue business, and do you see adjacent business such as EV solutions becoming a meaningful contribution to earnings over the medium term?

Disha Chamriya: Got it, sir. My next question was, could you please update on the scale and profitability of the AdBlue business, and do you see adjacent business such as EV solutions becoming a meaningful contribution to earnings over the medium term?

Speaker #7: Ravi, are you asking about the profitability of AdBlue? She’s asking about AdBlue?

Manish Gangwal: Sorry, are you asking about the AdBlue? She's asking AdBlue.

Speaker #3: Yes, sir. AdBlue and EV. Yes, sir.

Disha Chambria: Yes, sir. AdBlue and EV.

Disha Chamriya: Yes, sir. AdBlue and EV.

Speaker #7: So, AdBlue has also been a very strong pillar for us now. We are clearly among the top three suppliers of AdBlue in India, and the volumes are now stable at around 38,000 to 40,000 KL a quarter.

Manish Gangwal: AdBlue also has been a very strong pillar for us now. We are clearly in the top three suppliers of AdBlue in India, and the volumes are now stable at around 38,000 to 40,000 KL a quarter, which we have been consistently now in a position to achieve. This quarter also, we have been able to achieve 40,000 KL of AdBlue. We all know that AdBlue is a product which is a low realization product with a single-digit margin, but it adds up to the overall volume and gives us that operating leverage and efficiency. At the same time, the entire supply chain process is the same and consumer is the same, it perfectly fits in the synergy product category. Hence, our focus on AdBlue continues, but this product will always be able to deliver only a mid-single digit margin. This is about AdBlue.

Speaker #7: Which we have been consistently now in a position to achieve. This quarter also, we have been able to achieve 40,000 KL of AdBlue. We all know that AdBlue is a product which is a low realization product with a single-digit margin.

Speaker #7: But it adds up to the overall volume and gives us that operating leverage and efficiency. At the same time, the entire supply chain process is the same, and the consumer is the same.

Speaker #7: So, it perfectly sits in the synergy product category, and hence, our focus on AdBlue continues. But this product will always be able to deliver only a mid-single-digit margin.

Speaker #7: So, this is about AdBlue. Coming to EV, of course, we have been saying that it is a very nascent business for us and for the industry also.

Manish Gangwal: Coming to EV, of course, we have been saying that it is a very nascent business for us and for the industry also. We are seeing the traction happening in EVs in certain segments, and more particularly in e-buses. There are a lot of government initiatives now, new tenders have come for e-buses, and I think in the next one to two years, all those tenders will be materialized, based on which we will be able to definitely take the EV business as per our earlier guidance in the range of around INR 300 to 400 crores in three to four years.

Speaker #7: But we are seeing the traction happening in EVs in certain segments, and particularly in e-buses. There are a lot of government initiatives now, and new tenders have come for e-buses.

Speaker #7: And I think in the next one to two years, all those tenders will be materialized, based on which we will definitely be able to take the EV business, as per our earlier guidance, to the range of around ₹300 to ₹400 crore in three to four years.

Speaker #3: Got it, sir. My next question was that, given this industry is highly competitive, have you observed any changes in pricing discipline or promotional intensity during Q1 that have affected your market strategy?

Disha Chambria: Got it, sir. My next question was that given this industry is highly competitive, have you observed any changes in the pricing discipline or promotional intensity during Q1 that has affected your market strategy?

Disha Chamriya: Got it, sir. My next question was that given this industry is highly competitive, have you observed any changes in the pricing discipline or promotional intensity during Q1 that has affected your market strategy?

Speaker #7: No, sir. I think, obviously, the pricing levels will differ based on the brand strength in the B2C business. I think we are seeing a huge cost increase.

Ravi Chawla: No. I think the market, obviously, the pricing levels will differ based on the brand strength in the B2C business. I think we are seeing a huge cost increase, price increases are happening. I would say in the OEMs, obviously, there is a different structure on pricing, and B2B is also competitively applied. We don't see any change as such, but yes, the price increase which has happened is quite significant in the industry, quite unprecedented. There have been a series of price increases, and I think now we are maintaining our position. In fact, we are in a strong position in terms of our brand. We are able to also take a little bit of lead on the price increases in certain segments.

Speaker #7: So, price increases are happening. And I would say, for the OEMs, obviously, there's a different structure on pricing, and B2B is also competitively led. So, we don't see any change as such.

Speaker #7: But yes, the price increase which has happened is quite significant in the industry—quite unprecedented. So, there have been a series of price increases.

Speaker #7: And I think now we are maintaining our position. In fact, we are in a strong position in terms of our brand, so we are able to also take a little bit of lead on the price increases in certain segments.

Speaker #3: Just a follow-up on that question, sir. As you said, premium products and premiumization could be a key strategic focus right now.

Disha Chambria: Just a follow-up on that question, sir. As you said that premium products and premiumization would be a key strategic focus right now. Could you just quantify how much of share from the premium lubricants has evolved over the last few years? How much of the future earning growth do you expect to come from the premiumization rather than the volume expansion?

Disha Chamriya: Just a follow-up on that question, sir. As you said that premium products and premiumization would be a key strategic focus right now. Could you just quantify how much of share from the premium lubricants has evolved over the last few years? How much of the future earning growth do you expect to come from the premiumization rather than the volume expansion?

Speaker #3: So could you just quantify how much of share from the premium lubricants has evolved over the last few years? And how much of the future earning growth do you expect to come from the premiumization rather than the volume expansion?

Speaker #7: See, the volume expansion of the industry is predicted to be around 3% to 4% for the next decade or so, and the value increase in the industry is expected to be double that.

Ravi Chawla: See, the volume expansion of the industry is predicted to be around 3% to 4% for the next decade or so. The value increase in the industry is expected to be double of that. If you see, the value is coming from the higher-end products. Now, higher-end products are synthetics and other advanced products which are coming, which are semi-synthetic, synthetics and higher specifications. Now, as a company, we have got ample room to grow in that. As a percentage, obviously, we are not getting into details because each segment has a certain level of premiumization. Our endeavor is to premiumize our range because it is also adding value to the industry and us. We generally have in each of the segments, you have products and you have certain percentages. It is quite complicated to explain.

Speaker #7: So, if you see, the value is coming from the higher-end products. Now, higher-end products are synthetics and other advanced products, which are coming in, which are semi-synthetic, synthetic, and higher specifications.

Speaker #7: Now, as a company, we have got ample room to grow in that. As a percentage, obviously we are not getting into detail because each segment has a certain level of premiumization.

Speaker #7: And our endeavor is to premiumize our range because it is also adding value to the industry and to us. So we generally have, in each of the segments, products and certain percentages.

Speaker #7: It's quite complicated to explain. But overall, we are trying to increase our synthetics—our premium and value-added ranges. Also, environment-friendly products like biodegradable hydraulic oils, etc.

Ravi Chawla: Overall, we are trying to increase our synthetics, our premium and value-added ranges. Also environment friendly products like biodegradable, hydraulic oils, et cetera. As a percentage, this is still, I would say, below 10% overall for us, and we want to take this to a higher level.

Speaker #7: So, as a percentage, this is still, I would say, below 10% overall for us. And we want to take this to a higher level.

Speaker #3: Got it, sir. I understand. And just one small question: What do you think are—okay, sir, I'll join back to the case.

Disha Chambria: Got it, sir. I understand. Just one small question.

Disha Chamriya: Got it, sir. I understand. Just one small question.

Manish Gangwal: Can you-

Disha Chambria: Okay, sir. I'll join back to you again.

Disha Chamriya: Okay, sir. I'll join back to you again.

Speaker #7: Yeah, please, if you don't mind. Thank you.

Manish Gangwal: Yeah, please. If you don't mind.

Disha Chambria: Thank you.

Disha Chamriya: Thank you.

Manish Gangwal: Because I

Operator 2: Thank you. The next question is from the line of Nitin Tiwari from PhillipCapital India Limited. Please go ahead.

Operator: Thank you. The next question is from the line of Nitin Tiwari from PhillipCapital India Limited. Please go ahead.

Speaker #1: The next question is from the line of Nitin Tiwari from Philip Capital India Limited. Please go ahead.

Speaker #8: Hi, sir. Good evening. Thank you for the opportunity, and congratulations on a very strong set of numbers. My question is with respect to the growth in volume that we have seen this quarter.

Nitin Tiwari: Hi, sir. Good evening. Thanks for the opportunity, and congratulations on very strong set of numbers. My question actually was with respect to the growth in volume that we have seen in this quarter. If you can just put it in some perspective, how has the industry growth been in this quarter, and just let me know what our growth is? Also what led to this strong growth? I mean, was there any element of an anticipatory sort of buying because a price increase was anticipated or something like that? How do we see this number unfolding over this degree?

Speaker #8: So, if you can just put it in some perspective, how has the industry growth been in this quarter versus what our growth is?

Speaker #8: And also, what led to this strong growth? I mean, was there any element of anticipatory sort of buying because price increases were anticipated, or something like that?

Speaker #8: And how do we see this number unfolding over the 6–0 years?

Speaker #7: Yeah, so Nitin, thank you very much. I think industry growth as a benchmark, we said three to four percent. As you know, the information is not fully known on the industry growth because you have so many players.

Ravi Chawla: Nitin, thank you very much. I think industry growth as a benchmark, we say 3% to 4%. As you know, the information is not fully known on the industry growth because you have so many players. If we were to look at it today, 3% to 4%, obviously the quarter was a supply security, as we mentioned, was a very important thing. There was definitely people wanted to secure some supplies. I would say that is an important thing for the industry because a lot of the industry's OEMs are very highly dependent on having these supplies in the pipeline, otherwise they would lose their customers. That is a very important element and people have definitely looked at how the industry can supply. I think in that, Gulf has done very well. We've been able to get whatever we gauge.

Speaker #7: But if we were to look at it today, three to four percent—obviously, the quarter was, as we mentioned, a supply security. That was a very important thing.

Speaker #7: So there were definitely people who wanted to secure some supplies. And I would say that that is an important thing for the industry because a lot of the industry's OEMs are very highly dependent on having these supplies in the pipeline.

Speaker #7: Otherwise, they would lose their customers. So that is a very important element. And people have definitely looked at how the industry can supply. I think in that, Gulf has done very well.

Speaker #7: We've been able to get whatever we gauge. We've not only been able to meet the needs of our customers, but even our channel distributors required stocks.

Ravi Chawla: We've not only been able to meet the needs of our customers, even our channel distributors required stocks. We have a close monitoring system which shows that we've been able to supply to meet a lot of the expectations, and we have been able to do better than others. I would say that some of the growth we have got is definitely due to this efficiency model which we had in place, and we continue to grow at least 2x to 3x. In fact, 3x is clearly what we feel. Maybe there's a percentage to growth which has come due to better supplies or maybe more. The question is also the way that we have been able to go about all our segments growing effectively. That is another key which has happened for us and I think that bodes well for us.

Speaker #7: So, we have a close monitoring system, which shows that we've been able to supply to meet a lot of the expectations, and we have been able to do better than others.

Speaker #7: So I would say that some of the growth we have achieved is definitely due to this efficiency model which we had in place. And we continue to grow at least 2 to 3x.

Speaker #7: In fact, 3X is clearly what we feel. Maybe there's a percentage of growth which has come due to better supplies, or maybe more.

Speaker #7: But the question is also the way that we have been able to go about all our segments growing effectively. That is another key which has happened for us.

Speaker #7: And I think that's obvious for us. We will definitely continue to look at this 2 to 3x growth going forward.

Ravi Chawla: We will continue to look at this 2x to 3x growth going forward. Of course, as we know that the industry also is going to grow. That's a positive thing and I think some of the growth, yes, this quarter has been due to more supply security, but definitely agility which we have shown and a lot of our segments doing very well.

Speaker #7: Of course, as we know, the industry is also going to grow, so that's a positive thing. And I think some of the growth this quarter has been due to more supply security.

Speaker #7: But definitely agility, which we have shown, and a lot of our segments are doing very well.

Speaker #8: Got it. Understood. So, what I was trying to understand is, is it going to be somewhat normal in the second or third quarter?

Nitin Tiwari: Got it. Understood. What I was trying to understand is that is it going to somewhat normalize in Q2, Q3, or do you expect the pace to continue as such?

Speaker #8: Or do you continue—I mean, do you expect the pace to continue as such?

Speaker #7: No, no. See, the July, August, September quarter is a monsoon quarter. Generally, the demand is slightly less, but demand related to agri and all goes up.

Ravi Chawla: No, no. See, the July, August, September quarter is a monsoon quarter. Generally the demand is slightly less, but the demand like agri and all goes up. OEMs are continuing to buy. B2C gets slightly less because of monsoon. I think overall, we will continue with our focus. If the opportunity is there, we are ready for it. We hope the quarter will be also a positive and a good growth quarter for us.

Speaker #7: OEMs are continuing to buy. B2C gets slightly less because of the monsoon. But I think overall, we will continue with our focus. If the opportunity is there, we are ready for it.

Speaker #7: But we hope the quarter will also be a positive, good growth quarter for us.

Speaker #8: Great. So that's good to know. And secondly on the pricing front, I suppose as raw material prices increase, we also undertook price revisions to adjust according to the same.

Nitin Tiwari: Great. That's good to know. Secondly, on the pricing front, I suppose, as raw material prices increase, we also undertook price resilience to adjust according to the same. Was this price adjustment distributed across the quarter or was it more towards the end of the quarter? How was it phased, if you can throw some color on that?

Speaker #8: So, was this price adjustment, I mean, distributed across the quarter? Or, was it more towards the end of the quarter? How was it paced, if you can throw some color on that?

Speaker #7: Nitin, we lost you. Can you please repeat the question?

Ravi Chawla: Nitin, we lost you just. Can you repeat the question?

Speaker #8: So I was saying that in the quarter, there would have been an increase in raw material costs. So I'm sure there was a price adjustment undertaken to pass on the same.

Nitin Tiwari: I was saying that in the quarter there would have been an increase in raw material costs. I'm sure there was a price adjustment undertaken to pass on the same. I was just trying to understand that was this evenly phased across the quarter or was it more bunched towards the beginning or end of the quarter, something like that?

Speaker #8: So I was just trying to understand, was this evenly paced across the quarter, or was it more bunched towards the beginning or end of the quarter?

Speaker #8: Something like that.

Speaker #7: Oh, see, it varies in the B2C market. You have seen close to three increases, which have happened starting March end, April beginning—which is practically every month or so.

Ravi Chawla: See, it varies. In the B2C market, we have seen close to three increases, which has happened starting March end, April beginning, which is practically every month or so. B2B, you have formulas and negotiations with all the customers. It is in a staggered amount, but obviously it has happened because of the increase in cost. It has happened in stages. Two to three stages across all customers and markets.

Speaker #7: And then on the B2B side, you have formulas and the negotiations with all the customers. So it is in a staggered amount. But obviously, it has happened because of the increase in cost.

Speaker #7: It has happened in stages—so, two to three stages—across all customers and markets.

Speaker #8: So, B2C was mostly in March and early April, and B2B was formulas?

Nitin Tiwari: B2C was mostly in March and April beginning. B2B was formulas.

Speaker #7: No, no. Regular periods. As I said, it was literally like a monthly sort of increase.

Ravi Chawla: No, regular periods. As I said, it was literally like a monthly sort of increase.

Speaker #8: Okay, got it, got it. And lastly, sir, if I may ask one more—so, what's the roadmap for Direct, if you can elaborate, in terms of revenue and profitability?

Nitin Tiwari: Okay, got it. Lastly, sir, if I may ask one more. What's the roadmap for Tyrex, if you can elaborate in terms of revenue and profitability, and how did it stand in this quarter?

Speaker #8: And how did it stand in this quarter?

Speaker #7: Yeah, so this quarter was slightly subdued because a lot of the EV buses, they come up in the depots and all, in the government depots.

Ravi Chawla: Yeah, this quarter was slightly subdued because a lot of the EV buses, they come up in the depots and all, in the government depots. That has gone slow this quarter but as we have mentioned earlier or earlier in our television interviews, the H1 we are expecting the revenue will be positive for us. Q1 has been slightly slow for us and we are both in AC/DC chargers. I think we are looking at obviously growth coming in, but I think most of the growth will come in Q2 now, and hopefully Q3 also will be good growth for us.

Speaker #7: So that has gone slowly this quarter. But as we have mentioned earlier, or earlier in our television interviews, for the first half, we are expecting the revenue will be positive for us.

Speaker #7: The first quarter has been slightly slow for us, and we are present in both AC and DC chargers. So, I think we are looking at growth coming in, obviously.

Speaker #7: But I think most of the growth will come in the second quarter now, and hopefully quarter three—quarter three also will be a good growth for us.

Speaker #8: Great, so understood. Thanks for answering my question. I'll get back in the queue.

Nitin Tiwari: Great, sir. Understood. Thanks for answering my question. I will get back in the queue.

Speaker #7: Thank you.

Ravi Chawla: Thank you.

Speaker #2: Thank you. Ladies and gentlemen, you are requested to restrict your questions to two per participant. The next question is from the line of Sabri Hazari K from MK Global Financial Services.

Operator 2: Thank you. Ladies and gentlemen, you are requested to restrict your question to two per participant. The next question is from the line of Sabari Hazarika from Emkay Global Financial Services. Please go ahead.

Operator: Thank you. Ladies and gentlemen, you are requested to restrict your question to two per participant. The next question is from the line of Sabari Hazarika from Emkay Global Financial Services. Please go ahead.

Speaker #2: Please go ahead.

Speaker #3: Yeah. Good afternoon, and congratulations on a good set of numbers. So, two questions from my side. Firstly, your sales volume growth—has it been uniform across different levels, right?

Sabari Hazarika: Good afternoon and congratulations on good set of numbers. Two questions from my side. Firstly, your sales volume growth. It has been uniform across different levels, right? Whether it's primary, secondary, or tertiary sales.

Sabri Hazarika: Good afternoon and congratulations on good set of numbers. Two questions from my side. Firstly, your sales volume growth. It has been uniform across different levels, right? Whether it's primary, secondary, or tertiary sales.

Speaker #3: Whether it's primary, secondary, or tertiary sales.

Speaker #7: No. So, if you look at the sales across segments, it has been double-digit, and definitely some are, as you said, 17% overall. Secondary and tertiary are more for the retail part.

Ravi Chawla: No. If you look at the sales across segments it has been double digit and definitely some are, as you said, 17% overall. Secondary, tertiary, is more for the retail part and of course selling it through the distributor. I would say yeah, there has been a good uptake across the various primary, secondary, and tertiary.

Speaker #7: And of course, selling into the distributors. So I would say, yeah, there has been a good offtake across the various – primary, secondary, and tertiary.

Speaker #3: Right. So have we seen some sort of natural increase in the amount of I mean, the demand for lubricants overall for the company also for the sector also as a whole?

Sabari Hazarika: Right. Have we seen some sort of natural increase in the amount of demand for lubricants overall for the company also for the sector also as a whole?

Sabri Hazarika: Right. Have we seen some sort of natural increase in the amount of demand for lubricants overall for the company also for the sector also as a whole?

Ravi Chawla: Sector we are looking at the market obviously, when there were supply security issues there has been stocking up but there's also been a sell-through. For us at least we can say that sell-through has been positive as per our primary sales and our sales to the markets. For the industry we still have to gauge but yeah overall market has grown we say 3% to 4%. We really don't have the figure now but in our market surveys we've come to know that the market has been slightly better.

Speaker #7: So, when we are looking at the market, obviously there has been some—obviously, when there were supply security issues, there has been stocking up.

Speaker #7: But there has also been a sell-through. For us, at least, we can say the sell-through has been positive, as per our primary sales and our sales to the markets.

Speaker #7: So, for the industry we still have to gauge, but yeah, overall, the market has grown. We say three to four percent, but we'll have to—we really don't have the figure now.

Speaker #7: But in our market segment, we have come to know that the market has been slightly better.

Speaker #3: Right. And the second question is on your margins. So, I think the EBITDA margin has remained sort of within the range, but the EBITDA per liter has gone up significantly because of the price hikes.

Sabari Hazarika: Right. Second question is on your margins. I think the EBITDA margin has remained within the range but the EBITDA per liter has gone up significantly because of the price hikes. Right now, you maintain this guidance of 12% to 14% range, or given that the EBITDA per liter has gone up almost 30%, 40%, there is a relook at the margin guidance?

Sabri Hazarika: Right. Second question is on your margins. I think the EBITDA margin has remained within the range but the EBITDA per liter has gone up significantly because of the price hikes. Right now, you maintain this guidance of 12% to 14% range, or given that the EBITDA per liter has gone up almost 30%, 40%, there is a relook at the margin guidance?

Speaker #3: So right now, I mean, you’ve maintained this guidance of the 12 to 14 percent range, or given that the EBITDA per liter has gone up almost 30-40 percent, is there a relook at the margin guidance?

Speaker #7: In the pricing price rising scenario, the top line goes up. And while we are our endeavor is to pass is pass on the per liter cost impact to the customers and maintain our per liter margins.

Manish Gangwal: In the price rising scenario, the top line goes up. While our endeavor is to pass on the per liter cost impact to the customers and maintain our per liter margins, the percentage margins are slightly dilutive in this kind of inflationary environment, where prices are really going up very, very high. Percentage, perhaps for the medium term, is not an ideal way to look at it because there is a mismatch between the top line and the per liter EBITDA you can make. On a long-term sustainable basis, yes, our 12% to 14% guided band is still intact with the completely all efforts on premiumization and all, which will enable us to move to the next band as we have been highlighting for 14% to 16%.

Speaker #7: The percentage margins are slightly diluted in this kind of inflationary environment, where prices are really going up very, very high. And percentage margins, perhaps for the medium term, are not an ideal way to look at it because there is a mismatch between the top line and the per-liter EBITDA you can make.

Speaker #7: But on a long-term sustainable basis, yes, our 12 to 14 percent guided band is still intact, with all efforts on premiumization and all, which will enable us to move to the next band, as we have been highlighting, of 14 to 16 percent.

Speaker #7: But for the time being, this I think per liter managing the margin per liter and trying to improve slightly at that point is our primary task at the margin management from the margin management perspective.

Manish Gangwal: For the time being, I think managing the margin per liter and trying to improve slightly at that point is our primary task from the margin management perspective. We still hope that because our operating leverage will also come in the coming quarters, 12% to 14% should also be manageable.

Speaker #7: But we still hope that, because operating leverage will also come in during the coming quarters, 12 to 14 percent should also be manageable.

Speaker #3: Right. And also, was there any inventory gain impact on the margins?

Sabari Hazarika: Right. Also, was there any inventory gain impact in the margins?

Sabri Hazarika: Right. Also, was there any inventory gain impact in the margins?

Speaker #7: No, no. So we don't play on inventories. We are like an FMCG. So if there is a cost increase, we pass it on.

Manish Gangwal: We don't play on inventories. We are like an FMCG. If there is a cost increase, we pass on. If there is a cost decrease, we have to pass on. We don't play on inventory. There are no inventory gains-related accounting.

Speaker #7: If there is a cost decrease, we have to pass it on. So we don't play on inventory. There are no inventory gains related to accounting.

Speaker #3: Right. And also, just to follow up—now, if we see, I mean, there's been a sharp increase in baseline prices in the last three to four months.

Sabari Hazarika: Just to follow up. If we see, there's been a sharp increase in base oil prices in the last three, four months. Our raw material right now, to what extent the transmission has happened already in our raw material cost, or are we seeing more increase in, say, in these months like July, August?

Sabri Hazarika: Just to follow up. If we see, there's been a sharp increase in base oil prices in the last three, four months. Our raw material right now, to what extent the transmission has happened already in our raw material cost, or are we seeing more increase in, say, in these months like July, August?

Speaker #3: So, regarding our raw materials right now, to what extent has the transmission already happened in our raw material cost? Or are we seeing more increases in, say, these months, like July and August?

Speaker #7: So, as we speak, I think we have taken another price increase in retail effective 1st of July. But it is just that the B2C pricing takes nearly one to two months to get fully implemented because there is pipeline inventory in the channel.

Manish Gangwal: As we speak, I think we have taken another price increase in retail effective 1 July. The B2C pricing takes nearly one to two months to get fully implemented because there is a pipeline inventory in the channel. Since the input costs have not come down significantly, although the crude is reflecting that it is from touching above $100 to it has come down to below $85 now. The base oil pricing so far is not reflecting such decrease anywhere close to that. Rather, in some of the grades, the upward movement continues, like some of the high-end base oils, because of the demand-supply position. It is very difficult to right now predict until and unless the supply side improvement happens, because the crude pricing is one barometer for base oil to move.

Speaker #7: But since the input cost I have not come down significantly, although the crude is reflecting that it is from touching up above $100 to it has come down to below $85 now.

Speaker #7: But the base oil pricing so far is not reflecting such decrease anywhere close to that. And rather, in some of the grades, the upward movement continues.

Speaker #7: Some of the high-end base oils—because of the demand-supply position—it is very, very difficult to predict right now, until and unless the supply side improvement happens.

Speaker #7: Because crude pricing is one barometer for base oil to move. But equally important, in these times, is the improvement on the supply side—the improvement in the supply of base oils.

Manish Gangwal: Equally important is, in these times, the supply side improvement in the supply of base oils. That is still very difficult. We would say Strait of Hormuz is still almost shut. It's very difficult to say how the things will move. Further price increases may need to be taken if required, depending on how base oil moves and how demand-supply moves, how long it will take to reopen Hormuz now again. There are many factors right now. We have to play it by the month, maybe.

Speaker #7: And that is still very, very difficult. We would say straight-off formulas are still almost shut. So it's very difficult to say how things will move further. Price increases may need to be taken if required, depending on how base oil moves and how demand-supply moves, and how long it will take to reopen formulas now, again.

Speaker #7: So, there are many factors right now. We have to play it by the month, maybe.

Speaker #3: Got it, sir. Thank you so much, and all the best.

Sabari Hazarika: Got it, sir. Thank you so much. All the best.

Sabri Hazarika: Got it, sir. Thank you so much. All the best.

Speaker #7: Thank you. Thank you.

Manish Gangwal: Thank you.

Operator 2: Thank you. The next question is from the line of Ankit from Daisy Ventures Family Office. Please go ahead. Hello, Ankit. Please go ahead.

Operator: Thank you. The next question is from the line of Ankit from Daisy Ventures Family Office. Please go ahead. Hello, Ankit. Please go ahead.

Speaker #2: Thank you. The next question is from the line of Ankit from Daisy Ventures Family Office. Please go ahead. Hello, Ankit. Please go ahead.

Speaker #4: Your

[Analyst] (Daisy Ventures Family Office): Hi, Rahul. Your volume growth of 32% looks significantly high, but obviously there is price increases and channel stocking. For FY20, perhaps if you were to look at it, can you estimate what kind of volume growth would be sustainable? What kind of growth in revenue would be a potential growth in revenue, and what kind of margin should almost improve?

Ankit Minocha: Hi, Rahul. Your volume growth of 32% looks significantly high, but obviously there is price increases and channel stocking. For FY20, perhaps if you were to look at it, can you estimate what kind of volume growth would be sustainable? What kind of growth in revenue would be a potential growth in revenue, and what kind of margin should almost improve?

Speaker #7: Yes, yes, Ankit. Yeah, Ankit, we can hear you.

Speaker #4: Hi, good afternoon. So your volume—yeah, your volume is not up 32 percent. I mean, it looks like it's pretty high, but obviously, there are price increases and Chinese stocking.

Speaker #4: I mean, for FY27, if you were to look at it and kind of estimate, what kind of volume growth would be sustainable volume? What kind of growth in revenue would be a sustainable growth in revenue?

Speaker #4: And what kind of margins would you aim for?

Manish Gangwal: Our volume growth for core lubricants is 17% for the quarter. Revenue growth is 32%. As Ravi has just highlighted in the previous session, that while there may be some sort of pre-buying or one-offs in this volume, our entire strategy is to keep growing two to three as the market, which means anywhere close to double digit is what we have been growing. Last year also, full year basis, we have grown 11%. Overall, our guidance remains the same, that we will continue to grow two to three as the market, with the EBITDA band, which we will try to maintain in the range of 12% to 14%. Of course, I have caveated that in the previous session also, that in these times, percentage margin may not be a right parameter. Maybe the per liter margin will be a better optics.

Speaker #7: Our volume growth for core lubricant is 17 percent for the quarter. Revenue growth is 32 percent. And as Ravi just highlighted in the previous question, while there may be some sort of pre-buying or one-offs in this volume, our entire strategy is to keep growing two to three times the market, which means anywhere close to double digits is what we have been growing last year also, on a full year basis.

Speaker #7: We have grown 11 percent. So overall, our guidance remains the same: that we will continue to grow two to three percent above the market, with the EBITDA band which we will try to maintain in the range of 12 to 14 percent.

Speaker #7: Of course, I have caveated that in the previous question also, that in these times, percentage margin may not be the right parameter.

Speaker #7: Maybe the per liter margin will be a better optics. But having said that, our medium to long-term strategy continues to be ahead of the market growth, keep gaining the market share, and keep growing EBITDA on the back of a good volume growth with improved premiumization and eventually moving to the 14 to 16 percent band.

Manish Gangwal: Having said that, our medium to long term strategy continues to be ahead of the market growth, keep gaining the market share, and keep growing EBITDA on the back of a good volume growth with improved premiumization, and eventually moving to the 14% to 16% band.

Speaker #4: Okay. And with all the issues that you were kind of talking about, say, raw material pricing and also in terms of raw material, availability uncertainty, I mean, should we be building in a short-term kind of issue for margins ahead?

[Analyst] (Daisy Ventures Family Office): Okay. With all the issues that you were kind of talking about, with the raw material pricing and also in terms of raw material availability uncertainty, should we be building in a short-term issue for margins ahead? Do you see any kind of supply constraints even ahead? As of now in July, the situation quite comfortable, both in terms of growth and raw materials?

Ankit Minocha: Okay. With all the issues that you were kind of talking about, with the raw material pricing and also in terms of raw material availability uncertainty, should we be building in a short-term issue for margins ahead? Do you see any kind of supply constraints even ahead? As of now in July, the situation quite comfortable, both in terms of growth and raw materials?

Speaker #4: Or, and do you see any kind of supply constraints even ahead? Or is, as of now in July, the situation quite comfortable, both in terms of growth and raw materials?

Speaker #7: So, so far we have been able to manage our supplies very effectively. We have long-term tie-ups with some of the refiners, and on the spot market also, we have been very actively pursuing sourcing.

Manish Gangwal: So far, we have been able to manage our supplies very effectively. We have long-term tie-ups with some of the refiners. On the spot market also, we have been very actively pursuing sourcing. It all depends on how the situation remains or how long the situation of Middle East crisis remains. That will determine whether the supply will further get constrained or get eased out. It is, at this moment, very difficult to predict. I think we are geared up. We carry inventory also for at least 30 to 45 days on base oil sites. This quarter, at least, we are not seeing any major disruption. We have to really see how the crisis unfolds, and when the Strait of Hormuz normalizes, the things will rapidly improve as well.

Speaker #7: It all depends on how the situation remains, or how long the situation of the Middle East crisis persists. That will determine whether the supply will get further constrained or eased out.

Speaker #7: So, at this moment, it is very difficult to predict. But I think we are geared up. We also carry inventory for at least 30 to 45 days on the base oil side.

Speaker #7: So, this quarter at least, we are not seeing any major disruption. But we have to really see how the crisis unfolds, and when the state of formulas normalizes, things will rapidly improve as well.

Speaker #4: Right. Thank you, and all the best.

Mukund Agarwal: Right. Thank you very much.

Speaker #7: Thank you.

Manish Gangwal: Thank you.

Speaker #2: Thank you. The next question is from the line of Dhaval from Choice International Limited. Please go ahead.

Operator 2: Thank you. The next question is from the line of Dhaval from Choice International Limited. Please go ahead.

Operator: Thank you. The next question is from the line of Dhaval from Choice International Limited. Please go ahead.

Speaker #4: Yeah, hi. Thank you for taking my question. So, last quarter on the balance sheet, there was a debt that has been raised to fully expand the Tyrex plant.

[Analyst] (Choice International): Yeah. Hi. Thank you for taking my question. Last quarter, on the balance sheet, there was a debt that has been raised for the expansion of Tyrex plant on the consolidated level that I was able to see. Now, the INR 300 to 400 crore revenue guidance that is there, is that including expansion of the plant or is it basically expansion is baked in or do we think of it as a higher number? Second question I have is on the demand situation right now. Already a month has gone by. Do you see still some adopt demand coming through the market or is it broadly settled? I also have third question now if that is okay.

Dhaval Shah: Yeah. Hi. Thank you for taking my question. Last quarter, on the balance sheet, there was a debt that has been raised for the expansion of Tyrex plant on the consolidated level that I was able to see. Now, the INR 300 to 400 crore revenue guidance that is there, is that including expansion of the plant or is it basically expansion is baked in or do we think of it as a higher number? Second question I have is on the demand situation right now. Already a month has gone by. Do you see still some adopt demand coming through the market or is it broadly settled? I also have third question now if that is okay.

Speaker #4: On the consolidated level that I was able to see. So now, the ₹300 to ₹400 crore revenue guidance that is there—is that including the expansion of the plant?

Speaker #4: Or is it, basically, the expansion is baked in? Or do we think of it as a higher number? And the second question I have is on the demand situation right now, as in, already a month has gone by.

Speaker #4: So do you still see some ad hoc demand coming through the market, or is it broadly settled? I also have a third question, if that is okay?

Speaker #7: Yeah, yeah. Go ahead.

Manish Gangwal: Yeah. Go ahead.

Speaker #4: Yeah. And the third question only, so the floodlight situation in Silvasa—that one of the other lubricant there experienced—so is there anything to do with the utilization levels that could be there?

[Analyst] (Choice International): Third question on the flood-like situation in Silvassa that one of the other delivery entail experienced. Is that anything to do with the utilization levels that could be there for the current quarter, provided there was some sort of flood situation in Silvassa? Yeah, that's just my.

Dhaval Shah: Third question on the flood-like situation in Silvassa that one of the other delivery entail experienced. Is that anything to do with the utilization levels that could be there for the current quarter, provided there was some sort of flood situation in Silvassa? Yeah, that's just my.

Speaker #4: For the current quarter, was there some sort of flood situation in Silvasa? Yeah, that's what I meant.

Speaker #7: Yeah. So, Tyrex, as we have explained, we have bought a new plant. We are going to shift to that in terms of increasing the capacity.

Manish Gangwal: Tyrex, as we have explained, is that we have bought a new plant. We are going to shift to that in terms of increasing the capacity and obviously because we cater to lot of OEMs and all, it will be a very upgraded facility. That is what the CapEx was. The INR 300, 400 revenue is anyway, this is part of that when we are expanding, this will help to meet the need because we have 8% to 10% market share in the DC charger business. This enhanced capacity that we are creating is for the future. It will take care of our needs. Obviously, if that grows more, we have to look at it, but this will take care of our growth going forward in terms of the INR 300 to 400 crores.

Speaker #7: And obviously, because we cater to a lot of OEMs and all, it will be a very upgraded facility. So that is what the capex was.

Speaker #7: And the 300-400 revenue was, anyway, this is part of that. When we are expanding, this will help to meet the need because we have an 8-10 percent market share in the DC charger business.

Speaker #7: So, this enhanced capacity that we are creating is for the future. So, it will take care of our needs. Obviously, if that grows more, we have to look at it.

Speaker #7: But this will take care of our growth going forward, in terms of the Rs 300–400 crore. The other is, you asked a question on the...

Manish Gangwal: The other is you asked a question on the current July. Yeah, current July. You see July, August, September, the industry is generally a monsoon quarter. As we see it is obviously going to have that normal trajectory. At the current juncture, while we wait for the quarter to get over, it's a month-on-month thing. We are happy to say that we continue to look at our 2x to 3x growth. Industry at the moment, yeah, July, we are seeing obviously normal July, normal August. It depends a lot on the agri season. That seems to be going positively. I think the third question I will take, which is on the Silvassa side. Yeah. Our plant has been operating smoothly, and we have not been impacted on the production side. Our capacity is in full stream. No problem.

Speaker #5: February-July.

Speaker #7: Yeah. Currently, July, August, and September—the industry is generally in a monsoon quarter. And as we see it, it is obviously going to have that normal trajectory.

Speaker #7: At the current juncture, while we wait for the quarter to get over, it's a month-on-month thing. And we are happy to say that we continue to look at our 2–3x growth.

Speaker #7: Industry at the moment, yeah. July we are seeing, obviously, normal July. Normal August is dependent a lot on the agri season, so that seems to be going positively.

Speaker #5: I think I will take the third question, which is on the Silvassa side. Our plant has been operating smoothly, and we have not been impacted.

Speaker #5: On the production side, our capacity is in full stream—no problem.

Speaker #4: Okay, thank you. Thanks. That's it. Yeah, that's all.

[Analyst] (Choice International): Okay. Thank you. That's it. I think. Thanks so much.

Dhaval Shah: Okay. Thank you. That's it. I think. Thanks so much.

Speaker #5: Thank you.

Manish Gangwal: Thank you. Thank you.

Speaker #7: Thank you.

Speaker #2: Thank you. The next question is from the line of Prashant, an individual investor. Please go ahead.

Operator 2: Thank you. The next question is from the line of Prashant, an individual investor. Please go ahead.

Operator: Thank you. The next question is from the line of Prashant, an individual investor. Please go ahead.

Speaker #4: Hello. Thank you for the opportunity, sir, and congratulations on a good set of numbers. Sir, my question is regarding the status of our ongoing expansion at the Silvassa and Chennai plants.

[Company Representative]: Hello. Thank you for the opportunity, sir, and congrats on good set of numbers. Sir, my question is regarding what is the status of our ongoing expansion in Silvassa and Chennai plant?

[Shareholder] (Private Investor): Hello. Thank you for the opportunity, sir, and congrats on good set of numbers. Sir, my question is regarding what is the status of our ongoing expansion in Silvassa and Chennai plant?

Speaker #7: Yeah. So, I think Silvasa and Chennai, as we announced, will see a 70% increase in capacity. We had announced in Q3 and Q4 that there would be a phased increase in production.

Manish Gangwal: Yeah. I think Silvassa and Chennai, as we announced 70% increase in capacity. We had announced Q3, Q4, where there'll be phased increase of production. We are happy to share that, yeah, Chennai is on track. Silvassa, we are also expecting that some of the augmented production will start, and that also should be there by the year-end, financial year-end. It's online with what we had planned.

Speaker #7: And we are happy to share that, yes, Chennai is on track. Silvassa, we are also expecting that some of the augmented production will start.

Speaker #7: And that also should be there by the year-end—financial year-end. So it's in line with what we had planned.

Speaker #4: So the Chennai plant would be ready by December, and Silvasa will be by the end of March?

[Company Representative]: The Chennai plant would be by December and Silvassa will be by end of March?

[Shareholder] (Private Investor): The Chennai plant would be by December and Silvassa will be by end of March?

Speaker #7: Yeah, yeah, yeah. So there's a lot of commissioning of intermediary equipment, storage, and all which happens. So I think more or less that's where the plans are.

Manish Gangwal: Yeah. There's a lot of commissioning of intermediary equipment storage and all which happens. I think more or less that's where the plans are.

Speaker #4: So all the fieldwork and machinery orders, everything is set and installation is ongoing, or?

[Company Representative]: All the field work and machinery order, everything is set and installation is ongoing, all those?

[Shareholder] (Private Investor): All the field work and machinery order, everything is set and installation is ongoing, all those?

Speaker #7: That's part of the capex expansion, as you are aware.

Manish Gangwal: That's part of the CapEx expansion as you are aware.

Speaker #4: Okay. Okay. Thank you very much, sir. That's it.

[Company Representative]: Okay. Thank you very much, sir.

[Shareholder] (Private Investor): Okay. Thank you very much, sir.

Manish Gangwal: Thank you.

[Company Representative]: That's it.

[Shareholder] (Private Investor): That's it.

Speaker #2: Thank you. The next question is from the line of Aria Patel from MK Global. Please go ahead.

Operator 2: Thank you. The next question is from the line of Arya Patel from Emkay Global. Please go ahead.

Operator: Thank you. The next question is from the line of Arya Patel from Emkay Global. Please go ahead.

Speaker #6: Hi. Thank you, sir, for the opportunity and congratulations on a really good set of numbers. So, my question is regarding the domestic supply of base oil.

Arya Patel: Hi, thank you, sir, for the opportunity, and congrats on a really good set of numbers. My question is regarding domestic supply of base oil. We know that NMCs are coming up with enhanced capacity. How do we expect the domestic supply to go up, and by when are we looking at this?

Speaker #6: So, we know that OMCs are coming up with enhanced capacity. So, how do we expect the domestic supply to go up, and by when are we looking at this?

Speaker #7: We are in touch with all the NOCs in India who are producing base oils. In fact, we keep buying from them as well, so we are in close touch with them.

Manish Gangwal: We are in touch with all the NOCs in India who are producing the base oil. In fact, we keep buying from them as well. We are in close touch with them, and whenever they are ready with the additional capacities, we would be happy to connect and get the additional sourcing from them, subject to, of course, the pricing and quality, which is our norm. We are well connected with them.

Speaker #7: And whenever they are ready with the additional capacities, we would be happy to connect and obtain the additional sourcing from them, subject, of course, to the pricing and quality.

Speaker #7: Which is our norm. So we are well connected with them.

Speaker #6: Got it, sir. Thank you. That is necessary.

Arya Patel: Got it, sir. Thank you. That is my question.

Speaker #7: Thank you.

Manish Gangwal: Thank you.

Speaker #2: Thank you. The next question is from the line of Mukund Agarwal, an individual investor. Please go ahead.

Operator 2: Thank you. The next question is from the line of Mukund Agarwal, an individual investor. Please go ahead.

Operator: Thank you. The next question is from the line of Mukund Agarwal, an individual investor. Please go ahead.

Speaker #4: Sir, congratulations on a great set of numbers.

Mukund Agarwal: Sir, congratulations on great set of numbers.

Speaker #7: Thank you. Thank you.

Manish Gangwal: Thank you.

Speaker #4: Sir, all my questions have been answered, so thank you so much. I just didn't know how to disconnect from the queue.

Mukund Agarwal: Sir, all my questions have been answered, thank you so much. I just didn't know how to disconnect from the queue line.

Speaker #7: Thank you. Thank you.

Manish Gangwal: Thank you.

Speaker #2: Thank you. The next question is from the line of Rushav Vekwani from Vinambra Capital. Please go ahead.

Operator 2: Thank you. The next question is from the line of Rushabh Vikhwani from Vinamra Capital. Please go ahead.

Operator: Thank you. The next question is from the line of Rushabh Vikhwani from Vinamra Capital. Please go ahead.

Speaker #7: Thank you for the opportunity. So, sir, my first question relates to the Gulf 2.0 plan. We were looking at value-added products increasing in the overall mix.

Rushabh Vikhwani: Yeah. Thank you for the opportunity. Sir, my first question relates to the Gulf 2.0 plan. We were looking at value-added products increasing in the overall mix. Now that we are roughly about two years out since the initial plan was announced, could you quantify as to how the business mix has changed in terms of value-added products and how it has translated into margin?

Rushabh Vikmani: Yeah. Thank you for the opportunity. Sir, my first question relates to the Gulf 2.0 plan. We were looking at value-added products increasing in the overall mix. Now that we are roughly about two years out since the initial plan was announced, could you quantify as to how the business mix has changed in terms of value-added products and how it has translated into margin?

Speaker #7: So now that we are roughly about two years out since the initial plan was announced, could you quantify how the business mix has changed in terms of value-added products and how it has translated into margin?

Speaker #7: Yeah. So, some of the products that we have brought in—obviously the synthetic range—we are talking about a range which is, obviously, going to be at higher sort of formulation levels.

Manish Gangwal: Yeah. Some of the products that we have brought in, obviously the synthetic range. We are talking about the range which is obviously going to be at a higher sort of formulation levels. I think for us, getting these products out in terms of needs of our automotive consumers, in terms of our B2B partners. I think it's an all-round initiative which adds to the value. As I mentioned earlier that some of the synthetics and other products we have are still below 10%. We really want to see, that has already started to go up year on year, and we are expecting that this will obviously add to the future pipelines that have been created. As you rightly said, this journey has now started of Unlock 2.0. Some of these products already are selling.

Speaker #7: So, I think for us, getting these products out in terms of the needs of our automotive consumers and in terms of our B2B partners—so I think it's an all-round initiative which adds to the value.

Speaker #7: And as I mentioned earlier, some of the synthetics and other products we have are still below 10 percent. So we really want to see that has already started to go up year on year.

Speaker #7: And we are expecting that this will obviously add to the future pipelines we have created. So, as you rightly said, this journey has now started of Unlock 2.0.

Speaker #7: And some of these products are already selling. For example, we have a range of synthetic motorcycle oil called Syntrac. We have launched five or six new variants in that.

Manish Gangwal: Like we have a range of synthetic motorcycle oil called Syntrac. We have launched five, six new variants in that. Currently they are single digit in terms of our volumes, but we expect it to go up by at least 1%, 1.5% every year.

Speaker #7: So currently, they are single-digit in terms of our volumes. But we expect it to go up by at least one, one and a half percentage points every year.

Speaker #6: Right. So if we were to look at the blended portfolio, we are talking about, say, a value added of about 10 to 20 percent, roughly, ballpark, in that range.

Rushabh Vikhwani: Right. If you were to look at the blended portfolio, we are talking about a value added of about 10%, 20%, roughly ballparked in that range.

Rushabh Vikmani: Right. If you were to look at the blended portfolio, we are talking about a value added of about 10%, 20%, roughly ballparked in that range.

Speaker #7: That is difficult to keep slicing and dicing that way. But generally, these products form part of the range, and they keep taking it up. And obviously, the value addition is both in terms of creation of value for the customer, and in terms of the pricing.

Manish Gangwal: That is difficult to keep slicing, dicing that way. Generally, these products form part of the range, and they keep taking it up. Obviously the value addition is both in terms of creation of value for the customer and in terms of the pricing. Of course, some of these products would have a better margin. We have to invest in them equally to be able to get them. It is a sort of a balanced equation one should look. Yeah, the idea to premiumize is to create more value.

Speaker #7: And of course, some of these products would have a better margin. But we have to invest in them equally to be able to get them.

Speaker #7: So, it is a sort of a balanced equation, must you look. But yeah, the idea to premiumize is to create more value.

Speaker #6: Right. It would be to target each category and do at least about 150 to 200, which is kind of an improvement, right? Broadly.

Rushabh Vikhwani: Right. Essentially, the annual target would be to target each category and do at least about 150 to 200, this kind of improvement, right?

Rushabh Vikmani: Right. Essentially, the annual target would be to target each category and do at least about 150 to 200, this kind of improvement, right?

Manish Gangwal: Should. Our 2x to 3x market growth gives us a percentage market share. If we are looking at these products, they should give us at least higher than that delta.

Speaker #7: Our two to three times market growth gives us a percentage market share. If we are looking at these products, they should give us at least higher than the delta.

Speaker #6: Right, Sir. And secondly, in terms of direct, I think there are some revenue numbers that we've been looking at—some 300, 400 crore numbers.

Rushabh Vikhwani: Right, sir. Secondly, in terms of Tyrex, I think there's some revenue numbers that we've been looking at, some INR 300, 400 crore numbers. From an operational standpoint, in terms of market, could you throw some light on what is the competitive landscape right now? What are the kind of, essentially traction in terms of the charger infrastructure which is there? Anything around the industry of Tyrex, if you could throw some light.

Rushabh Vikmani: Right, sir. Secondly, in terms of Tyrex, I think there's some revenue numbers that we've been looking at, some INR 300, 400 crore numbers. From an operational standpoint, in terms of market, could you throw some light on what is the competitive landscape right now? What are the kind of, essentially traction in terms of the charger infrastructure which is there? Anything around the industry of Tyrex, if you could throw some light.

Speaker #6: But from an operational standpoint, in terms of the market, could you throw some light on what is the competitive landscape right now? What is the kind of, essentially, traction in terms of the charger infrastructure which is there?

Speaker #6: So, anything around the industry of direct—if you could throw some light?

Speaker #7: So, direct is catering to the fast chargers, which are called DC chargers. It varies from, what, 30 kilowatts to 240, to 360 also. And these are used for fast charging for cars.

Manish Gangwal: Tyrex is catering to the fast chargers, which are called DC chargers. It varies from what, 30kW to 240 to 360 also. These are used for fast charging for cars, but mainly it is today in the EV buses. The buses are requiring a lot of the charging, and now you see even construction equipment, you see SUVs requiring fast charging. They are present in the fast charging area, especially EV buses. We always said that we are one out of three EV buses on a Tyrex charger. They have about installed these over the last three, four, five years. Now, as we look at this market, it is now where the captive use is very high. It is also going into, for example, SUVs require fast charging. We also have the AC chargers, which are into cars.

Speaker #7: But mainly, it is today in the EV buses. The buses are requiring a lot of charging. And now you see even construction equipment.

Speaker #7: You see SUVs requiring fast charging, so they are present in the fast charging area. Especially EV buses—we have always said that one out of three EV buses is on a direct charger.

Speaker #7: They have about installed these over the last three, four, five years. Now, as we look at this market, it is now where the captive use is very high.

Speaker #7: It is also going into, for example, SUVs that require fast charging. We also have the AC chargers, which are in cars. So as this market develops, we are definitely looking at being part of the DC charger market and looking at evolving as the networks grow.

Manish Gangwal: As this market develops, we are definitely looking at being part of the DC charger market and looking at evolving with the network growing. There are bus OEMs who are buying. There are charge point operators who are buying. There are institutions who are buying. In fact, there are now societies that are buying. These are the segments which are evolving. As we look at it, Tyrex obviously has products which can meet the needs of these customers, and we will evolve. India is still, I would say, picking up a lot on the public. Bus network is becoming strong as we look at it, but obviously at a pace which is, we know is at a certain level. We are looking at a lot of the charge point operators coming in. In fact, now highway charging, destination charging, even home charging is becoming

Speaker #7: There are bus OEMs who are buying. There are charge point operators who are buying. There are institutions who are buying. In fact, there are now societies that are buying.

Speaker #7: So these are the segments which are evolving. And as we look at it, Tarex obviously has products which can meet the needs of these customers.

Speaker #7: And we will evolve. India is still, I would say, picking up a lot, and the public bus network is becoming strong as we look at it.

Speaker #7: But obviously, at a pace which we know is at a certain level. And we are looking at a lot of the charge point operators coming in.

Speaker #7: In fact, now highway charging destination charging, even home charging is becoming but definitely, a lot of potential to have more chargers in the system.

Ravi Chawla: Definitely, a lot of potential to have more chargers in the system, and also where the chargers are going to be used more. We would like to be also there where the chargers are being used effectively.

Speaker #7: And also where the chargers are going to be used more, so we would like to be there as well, where the chargers are being used effectively.

Rushabh Vikhwani: Right, sir. Thank you. Just one small question. In terms of our OEM business, if you could broadly give a ballpark number as to what was the OEM business 2 years back, and where are we right now in terms of the proportion?

Rushabh Vikmani: Right, sir. Thank you. Just one small question. In terms of our OEM business, if you could broadly give a ballpark number as to what was the OEM business 2 years back, and where are we right now in terms of the proportion?

Speaker #6: Right, sir. Thank you. And just one small question: in terms of our OEM business, if you could broadly give a ballpark number as to what was the OEM business two years back, and where are we right now in terms of the proportion?

Speaker #7: So, OEM business for us is a key building block. As we keep telling people, in 2007-08, we had two OEMs. Now, we have 50.

Ravi Chawla: OEM business for us is a key building block. As we keep telling people that 2007, 2008, we had 2 OEMs, now we have 15. It is a large part of our business. If you say 2 years back, we have been growing double digit across all our segments, including OEM.

Speaker #7: So it is a large part of our business. And if you look two years back, we have been growing double digits across all our segments, including OEM.

Speaker #6: I was actually trying to get the percentage to revenue, if you could give a ballpark.

Rushabh Vikhwani: I was actually trying to get the percentage to revenue, if you could give a ballpark.

Rushabh Vikmani: I was actually trying to get the percentage to revenue, if you could give a ballpark.

Speaker #7: Yeah, so we normally would not like to give those details because a large part of it is related to contracts and all. Yeah.

Ravi Chawla: Yeah. We normally would not like to give that detail because it's a large part of us as related to contracts and all. Yeah.

Speaker #6: Okay. Okay. No problem. Thank you so much. Thank you.

Rushabh Vikhwani: Okay. No problem. Thank you so much.

Rushabh Vikmani: Okay. No problem. Thank you so much.

Speaker #7: Thank you. Appreciate it.

Ravi Chawla: Thank you. Appreciate it.

Speaker #1: Thank you. The next question is from the line of Kirtan from Baroda BNP Paribas Mutual Fund. Please go ahead.

Operator 2: Thank you. The next question is from the line of Kirtan from Baroda BNP Paribas Mutual Fund. Please go ahead.

Operator: Thank you. The next question is from the line of Kirtan from Baroda BNP Paribas Mutual Fund. Please go ahead.

Speaker #6: Thank you, sir, for giving me the opportunity. Two questions—one on the growth side and second, probably, on the pricing side. On the growth side, is it possible to give some color beyond 'double-digit' in terms of what has been our growth for the B2B and B2C segments?

[Company Representative] (Baroda BNP Paribas Mutual Fund): Thank you, sir, for giving the opportunity. Two questions, one on the growth side and second probably on the pricing side. On the growth side, is it possible to sort of give a color beyond double digit in terms of what has been our growth for B2B and B2C segment? Within B2B, can we sort of give some indications on OEM as well as workshop segment? Just trying to understand where we have got this 17% from. Primarily from a perspective that when we compare the 17% versus the 11% growth that has happened last year, does this give us a comfort that at least this year growth could be 1% or 2% higher than the last year while it's remaining within the range? Are there any historical precedents around where we can compare the similar parallel situation to see how the demand movement has been post-disruption?

Kirtan Mehta: Thank you, sir, for giving the opportunity. Two questions, one on the growth side and second probably on the pricing side. On the growth side, is it possible to sort of give a color beyond double digit in terms of what has been our growth for B2B and B2C segment? Within B2B, can we sort of give some indications on OEM as well as workshop segment? Just trying to understand where we have got this 17% from. Primarily from a perspective that when we compare the 17% versus the 11% growth that has happened last year, does this give us a comfort that at least this year growth could be 1% or 2% higher than the last year while it's remaining within the range? Are there any historical precedents around where we can compare the similar parallel situation to see how the demand movement has been post-disruption?

Speaker #6: And within B2B, can we sort of give some indications on OEM as well as the workshop segment? Just trying to understand where we have got this 17% from.

Speaker #6: And primarily from the perspective that, when we compare this 17% versus the 11% growth that happened last year, does this give us comfort that at least this year's growth could be 1 or 2 percent higher than last year while still remaining within the range?

Speaker #6: And are there any historical precedents where we can compare a similar parallel situation to see how the demand movement has been pushed or disrupted?

Speaker #6: I'll probably ask the question on the pricing later.

[Company Representative] (Baroda BNP Paribas Mutual Fund): I'll probably say the question on the pricing later.

Kirtan Mehta: I'll probably say the question on the pricing later.

Speaker #7: Oh, so Kirtan, see, as we mentioned to you very clearly that all our segments have been growing double-digit. Within the OEM segment, I think I mentioned it briefly, is that we have seen a very good uptick with the agri-culture part of the OEMs.

Ravi Chawla: No. Kirtan, see, as we mentioned to you very clearly, that all our segments have been growing double digits. Within the OEM segment, I think I mentioned it briefly, is that we have seen a very good uptick with the agriculture part of the OEMs. In the case of them also the motorcycles where we supply OEMs. These two segments have been higher growth for us. In the B2C, which is our channel business, we have again seen agriculture being strong and of course, passenger car for us, the base is lower, but we have grown well. I think these two segments, passenger car and agri, have been very good for us in B2C. In OEM franchise workshop, it has been the motorcycle and the agriculture. These are the segments in this quarter if we have to look at.

Speaker #7: And in the case of them also, the motorcycle, where we supply to OEMs, these two segments have seen higher growth for us. In the B2C, which is our channel business, we have again seen agriculture being strong. And of course, in passenger cars, for us, the base is lower, but we have grown well.

Speaker #7: So, I think these two segments — passenger car and agri — have been very good for us in B2C. In OEM and franchisee workshops, it has been the motorcycle and the agriculture segments.

Speaker #7: So, these are the segments in this quarter, if we are to look at them. But obviously, as we look at the industry in a holistic manner, we have explained that there has been a lot of supply security and important supply chain agility, which has also helped us to look at this entire quarter that has gone by.

Ravi Chawla: Obviously as we look at the industry in a holistic manner, we have explained that there has been a lot of supply security and important supply chain agility, which has also helped us to look at this entire quarter which has gone by. We also have been selling marine, which is a key segment now we look at for Vikalp globally. In India also we have seen marine, some exports have been done from here. Overall, this quarter has been a good quarter, and if we take the rest of the year, we'll have to see the situation. As normal growth happens, we are happy. If the opportunity presents that we are able to get more market share, we are in a good position to look at it. We'll have to wait and see how the rest of the year goes.

Speaker #7: And we have also been selling marine, which is a key segment. Now we look at it for Gulf globally, but in India also, we have seen that some marine exports have been done from here.

Speaker #7: So overall, this quarter has been a good quarter. And if we look at the rest of the year, we'll have to see the situation, because as normal growth happens, we are happy.

Speaker #7: If the opportunity presents itself and we are able to get more market share, we are in a good position to look at it. So we'll have to wait and see how the rest of the year goes.

Speaker #7: But definitely, as you can see, Q4 of last year was 14%. This Q1 was 17%, which is much higher than what we normally achieve.

Ravi Chawla: Definitely, as you can see, Q4 of last year was 14%. This Q1 was 17%, which is much higher than what we normally achieve. It's a good end to last year and a good beginning to this year. We'll have to wait and watch the rest of the year.

Speaker #7: So, it's a good end to last year and a good beginning to this year. So, we'll have to wait and watch the rest of the year.

Speaker #6: Sure, sir. Thank you. On this pricing side, I mean, the way you explained, B2B pricing can reverse with the formula with probably a one- to two-month lag.

[Company Representative] (Baroda BNP Paribas Mutual Fund): Sure, sir. Thank you. On this pricing side, the way you explained B2B pricing can reverse with the formula with probably one to two month lag. Is generally the B2C pricing stickier? Will the sort of the pricing will hold longer than typically the underlying cost of supply? In that sense, do we typically see margin expansion once this supply disruption starts easing? Are there any historical precedents to it?

Kirtan Mehta: Sure, sir. Thank you. On this pricing side, the way you explained B2B pricing can reverse with the formula with probably one to two month lag. Is generally the B2C pricing stickier? Will the sort of the pricing will hold longer than typically the underlying cost of supply? In that sense, do we typically see margin expansion once this supply disruption starts easing? Are there any historical precedents to it?

Speaker #6: But is the B2C pricing generally stickier? I mean, will the pricing hold longer than, typically, the underlying cost of supply?

Speaker #6: And in that sense, do we typically see margin expansion once this supply disruption starts easing? Are there any historical precedents for it?

Speaker #7: Yeah. So I think we have, in the past, seen on a few occasions that when these kinds of unprecedented price increases happen—especially in B2C, where you have to take a series of price increases one after another—and when the MRPs are increased significantly in line with those, the retail pack, which is mostly in the B2C, is sold on MRPs in India.

Ravi Chawla: Yeah, I think we have in the past seen on few occasions that when these kind of unprecedented price increase happen, especially in B2C where you have to take series of price increases one after another. When the MRPs are increased significantly in line with those, the retail pack which is mostly in the B2C are sold on MRP in India. When the prices start softening on the input cost side, you don't roll back usually all the MRP increases which have happened. That has been the past trend. We don't know because there is a competition, it's a very competitive industry. In the past we have seen that there have been typically some margin retention in B2C, although in B2B it is formula-driven and it is passed on.

Speaker #7: And when the prices start softening on the input cost side, you don't usually roll back all the MRP increases that have happened. That has been the past trend.

Speaker #7: We don't know because there is a competition, there is a it's a very competitive industry. But in the past, we have seen that there have been typically some margin retention in B2C, although in B2B, it is formula-driven and it is passed on.

Speaker #7: But in B2C, there is an opportunity to retain some price, depending on how the input cost behaves, in the coming quarters or over a period of maybe the next one year.

Ravi Chawla: B2C, there is an opportunity to retain some price depending on how the input cost behaves in the coming quarters or over a period of maybe next one year.

Speaker #6: Sure. Just one small follow-up to this: At what level of price increase do you start seeing some sort of demand destruction happening in the retail segment from your historical experiences?

[Company Representative] (Baroda BNP Paribas Mutual Fund): Sure. Just one small follow-up to this. At what level of price increase you start seeing some sort of demand disruption happening in retail segment from your historical experiences?

Kirtan Mehta: Sure. Just one small follow-up to this. At what level of price increase you start seeing some sort of demand disruption happening in retail segment from your historical experiences?

Speaker #7: It's very difficult to predict, because from segment to segment, a motorcycle buyer may be feeling more of a pinch on his or her pocket compared to a car buyer.

Ravi Chawla: Very difficult to predict for segment to segment. A motorcycle buyer may be pinching more to his or her pocket versus a car buyer. Depends on the segment and the category and the geography also.

Speaker #7: But it depends on the segment, the category, and the geography also. So, it's very difficult to predict. But yes, at a certain point, when such kinds of price increases happen—unprecedented price increases—people may tend towards down trading or going to some other, cheaper options available.

Manish Gangwal: Very difficult to predict. Yes, at a certain point when such kind of price increase happen, unprecedented price increases happen, people may tend to opt downtrading or going to some other cheaper options available, although there are hardly everybody has taken price increases in these scenarios, very difficult. Typically, yes, you are right. There is a possibility that at certain point the demand elasticity will play its role.

Speaker #7: Although hardly anybody has taken price increases in these scenarios—it's very difficult. But typically, yes, you are right. There is a possibility that at a certain point, then the demand elasticity will play its role.

Speaker #6: Yes, sir. The participant's line just got disconnected. Moving to the next question. The next question is from the line of Amit, an individual investor.

Operator 2: Yes, sir. The participant line just got disconnected. Moving to the next question. The next question is from the line of Amit, an individual investor. Please go ahead.

Operator: Yes, sir. The participant line just got disconnected. Moving to the next question. The next question is from the line of Amit, an individual investor. Please go ahead.

Speaker #6: Please go ahead.

Speaker #8: Hi, sir. Am I audible?

[Company Representative]: Hi, sir. Am I audible?

Operator: Hi, sir. Am I audible?

Speaker #7: Yes, please.

Manish Gangwal: Yes, please.

Speaker #8: Yeah, so first of all, congratulations on the good quarter. My two questions are: Assuming today's base oil cost and today's price list, what is the expected gross margin for the company? And second, in terms of the operating expenses—we've seen about a 190 basis points fall in operating expenses this quarter.

[Company Representative]: First of all, congratulations on the good quarter. My two questions are, assuming on today's base oil cost and today's price list, expected gross margin for the company. Second, we've seen about 190 basis points fall in operating expenses in this quarter as a share of revenue. Just want to understand what are the key items driving this. Is there some deferment in advertising and promotion spend which we've done?

Manish Gangwal: First of all, congratulations on the good quarter. My two questions are, assuming on today's base oil cost and today's price list, expected gross margin for the company. Second, we've seen about 190 basis points fall in operating expenses in this quarter as a share of revenue. Just want to understand what are the key items driving this. Is there some deferment in advertising and promotion spend which we've done?

Speaker #8: As a share of revenue, I just wanted to understand what are the key items driving this. Is there some deferment in advertising and promotion spend that we've done?

Speaker #7: No, sir. We don't calculate gross margins on a daily basis.

Manish Gangwal: No. We don't calculate gross margins on a daily basis like.

Speaker #8: Sir, directionality is just looking at a trend, because last quarter, since we carry 30 to 45 days of inventory, we would have some base oil which was bought in Q4 and consumed in Q1.

[Company Representative]: Sir, just looking at a directionality because last quarter would have, since we carry 30 to 45 days of inventory, we would have some base oil which was bought in Q4 and consumed in Q1.

Manish Gangwal: Sir, just looking at a directionality because last quarter would have, since we carry 30 to 45 days of inventory, we would have some base oil which was bought in Q4 and consumed in Q1.

Speaker #7: No, sir. Amit, you have to see, we follow the weighted average method. Every week, or even the next day when we receive a further parcel, our cost gets weighted averaged.

Manish Gangwal: Amit, you have to see, we follow weighted average. Every week or every next day when we receive a further parcel, our cost gets weighted averaged. It is not that we are consuming on FIFO basis the last month and the system does not behave like that as per the accounting standard also. We are in a very dynamic environment. We can only tell you that it is a very weekly evolving situation and price management is the topmost priority at this stage where we have to continuously monitor the input cost, the incoming material versus the stock and calibrate our pricing accordingly. It's not easy to approach 2,000 plus customers we are having in B2B and in our overall infrastructure B2B OEMs put together. It is not easy to approach them and negotiate every week or every month a price increase.

Speaker #7: So, it is not that we are consuming on a Q4 basis, the last month, and the system does not behave like that as per the accounting standard also.

Speaker #7: So we are in a very dynamic environment. We can only tell you that it is a very, very weakly evolving situation, and price management is the topmost priority at this stage.

Speaker #7: We have to continuously monitor the input cost, the incoming material versus the stock, and calibrate our pricing accordingly because it's not easy to approach the 2,000-plus customers we have in B2B and in our overall infrastructure, B2B and OEMs put together.

Speaker #7: It is not easy to approach them and negotiate a price increase every week or every month. It's a very, very difficult situation right now.

Manish Gangwal: It's a very difficult situation right now and we are trying to calibrate on an overall basis that we maintain our gross margins in the range plus/minus 1% and 2% here and there and pass on the thing to the customers in the event it goes beyond that. Of course, the percentages also I keep highlighting is that these are slightly becoming sometimes irrelevant in these scenarios because then the top line goes up very fast. Overall, we are still the 12% to 14% margin by looking at our other costs very closely, which brings me to your second question where operating cost you have seen some improvement. That is partly because of the operating leverage also because certain fixed costs you keep absorbing. We have spent still around 3% on our A&P, we have not largely cut the A&P in this quarter.

Speaker #7: And we are trying to calibrate, on an overall basis, that we maintain our gross margins in the range of plus or minus 1 to 2 percent here and there.

Speaker #7: And pass on the thing to the customers in the event it goes beyond that. Of course, the percentage is also—I keep highlighting this—that they are slightly becoming sometimes irrelevant in these scenarios because the top line goes up very fast.

Speaker #7: And overall, the deliverable is still the 12% to 14% margin, by looking at our other costs very, very closely. Which brings me to your second question.

Speaker #7: Where operating cost—you have seen some improvement; that is partly because of the operating leverage, also because certain fixed costs you keep absorbing. We have still spent around 3 percent on our ANP.

Speaker #7: So, we have not largely cut the ANP in this quarter. We have continued to maintain our share of OS in the market. But there have been many other fixed costs which we have been able to optimize and deliver the margin.

Manish Gangwal: We have continued to maintain our share of voice in the market. There have been many other fixed costs which we have been able to optimize and deliver the margin.

Speaker #8: Okay. And in terms of absolute rupees, Q1 FY27 is comparable to Q1 FY26 ANP cost? Ballpark is also fine.

[Company Representative]: Okay. In terms of absolute INR, Q1 FY27 is comparable to Q1 FY26 A&P cost? Ballpark is also fine.

Manish Gangwal: Okay. In terms of absolute INR, Q1 FY 2027 is comparable to Q1 FY26 A&P cost? Ballpark is also fine.

Speaker #7: You always talk about percentage, sir.

Manish Gangwal: We always talk about percentage, sir.

Speaker #8: Okay. Thank you.

[Company Representative]: Okay. Thank you.

Manish Gangwal: Okay. Thank you.

Speaker #7: Thank you.

Manish Gangwal: Thank you.

Speaker #6: Thank you. The next question is from the line of Vignesh Iyers from Sequent Investments. Please go ahead.

Operator 2: Thank you. The next question is on the line of Vignesh Iyer from Sequent Investments. Please go ahead.

Operator: Thank you. The next question is on the line of Vignesh Iyer from Sequent Investments. Please go ahead.

Speaker #8: Hello, sir. Thank you for the opportunity, and congratulations on a great set of numbers. I was listening to you earlier when you said that we, as such, don't make inventory gains because the system is different for us.

Vignesh Iyer: Hello, sir. Thank you for the opportunity and congratulation on great set of numbers. Sir, I was hearing you earlier when you said that we as such don't make inventory gains because the system is different for us. Also I heard you saying that the percentage margin tends to go down, which I understand because the numerator increases, so that way percentage margin goes down. Despite all this, you have actually, if I have to compare you with the same quarter last year, you have more or less done the same percentage margin as well. You have actually managed to do a better EBITDA per liter as well. Just from the understanding point of view, would it be fair to say when the situation normalizes from here on, the EBITDA percentage margin is only going to go up from here?

Speaker #8: But also, I heard you saying that the percentage margin tends to go down, which I understand because the numerator increases. So, in that way, the percentage margin goes down.

Speaker #8: But despite all this, you have actually decided to compare yourself with the same quarter last year. You have more or less done the same percentage margin as well.

Speaker #8: Whereas you have actually managed to achieve a better EBITDA per liter as well. So, just from an understanding point of view, would it be fair to say that when the situation normalizes from here on, the EBITDA percentage margin is only going to go up from here?

Speaker #8: I mean, I don't see it—in such a volatile environment, if you have managed to keep it stable at 12.51 percent versus 12.54 percent, which was last year's same quarter.

Vignesh Iyer: I don't see it in such a volatile environment if you have managed to keep it stable at 12.51% versus 12.54% which was last year same quarter. Am I reading it right? If you could share your thought on this.

Speaker #8: So, am I reading it right? Share your thoughts on this.

Speaker #7: Yes, sir. It depends on how much price rollback happens or whether further price increases need to be taken. If the situation emerges in the Middle East from here and the availability goes further, it is a concern.

Manish Gangwal: Yes, it depends on the how much price rollbacks happen or further price needs to be taken up if the situation worsens in the Middle East from here and the availability goes further scarce. The calibration on percentage will accordingly change because we must reiterate that not the full impact of all price increases has been reflective in the quarter. We have taken price increases which have been periodical. Every month, there has been some pricing action in different segments. The full price increase deflection will actually come in Q2 or Q3, probably when the situation starts normalizing. From there on, how the market and competition behave and what pricing actions are taken will determine whether the percentages now start improving or not. I hope you'll understand the current situation, which is very dynamic.

Speaker #7: So, the calibration on percentage will accordingly change, because we must reiterate that not the full impact of all price increases has been reflected in the quarter.

Speaker #7: We have taken price increases which have been periodical. Every month, there has been some pricing action in different segments. So the full price increase reflection will actually come in Q2 or Q3, probably when the situation starts normalizing.

Speaker #7: And from there on, what pricing actions are taken will determine whether the percentages now start improving or not. So, I hope you will understand the current situation, which is very, very dynamic.

Speaker #8: Understood. Understood. I mean, my question was more because our B2C is 55 percent, and usually, as you said earlier, with B2C there is some component where you have the power that you may not need to roll back the hikes.

Vignesh Iyer: Understood. Considering my question was more towards, because our B2C is 55%, and usually, as you said earlier, the B2C, there is some component where you have the power that you may not take, roll back the hikes. Considering that is a material percentage of our total revenue, I was thinking it is more or less possible that the percentage margin only goes up from here.

Speaker #8: So, considering that is a material percentage of our total revenue, I was thinking it is more or less possible that the percentage margin only goes up from here.

Speaker #7: No, no. Just to give you again a reflection for all the audiences here: The kind of price increase which has happened in the last three or four months in B2C is almost touching three digits.

Manish Gangwal: Just to give, again, a reflection to all the audiences here, the kind of price increase which has happened in the last three months, four months in B2C is in terms of almost touching to three digits. Now, in any consumer industry, those kind of price increases are not fully sustainable. Given an opportunity, whenever it happens, some rollbacks will happen in B2C as well. It is not that the prices once taken up are not going to be reversed in B2C also, provided the cost situation improves. I think when that will happen, the quantum will be determined based on the market situation and competition. Yeah, Ravi, you want to add something?

Speaker #7: Now, in any consumer industry, those kinds of price increases are not fully sustainable. Given an opportunity, whenever it happens, some rollback will happen in B2C as well.

Speaker #7: There is, it is not that the prices, once taken up, are not going to be reversed in B2C also. So, if the cost situation improves...

Speaker #7: And I think, both when that will happen and the quantum, will be determined based on the market situation and competition. And yeah, Ravi, do you want to add something to this?

Speaker #6: Yeah, so contextually, see, any price increase that happens—if there is a rollback, if the cost goes up 'X' and you increase the prices by 'X,' when you roll back, you will roll back when all the prices go up or down.

Ravi Chawla: Yeah, contextually, you see, any price increase that happens, if there is a rollback, if the cost goes up X and you increase the prices X, when you roll back, you will roll back when all the prices go up or down. Similar, you roll up. Similarly, when the prices come down, you'll have to have some rollback, but it could be possible that you retain something because you don't. As Manish correctly explained, this situation is quite unprecedented, and we'll have to wait and see how the market situation emerges. As a general, if the prices go up, there is some retention of margin, but there is a rollback. That is also to be understood. You can't retain the whole price increase. That doesn't happen in industry.

Speaker #6: Similarly, you roll up. So, similarly, when the prices come down, you'll have to have some rollback. But it could be possible that you retain something, because you don't.

Speaker #6: But as Manish correctly explained, this situation is quite unprecedented, and we'll have to wait and see how the market situation emerges. As a general rule, if the prices go up, there is some retention of margin.

Speaker #6: But there is a rollback. That is also to be understood. You can't retain the whole price increase—that doesn't happen in the industry.

Speaker #8: Right, right. Only, I was talking in the sense of just a partial or a very small part of that.

Vignesh Iyer: Right. Only I was talking in the sense of only a partial or a very small part of.

Speaker #7: You see, the situation is very, very fluid now with the base oil supplies and the cost. It's very fluid, it's very dynamic. That's the state of affairs because a lot of the refineries are taking feedstock from this part of the world, and they have to travel and go across that area to supply the refineries.

Ravi Chawla: You see, the situation is very fluid now with the base oil supplies and the cost. It's very fluid. It's very dynamic. Unless the Strait of Hormuz, because a lot of the refineries are taking feedstock from this part of the world, and they have to travel and go across that area to supply the refineries. There's a lot of movement and lot of things happening, which is refineries are starting or shutting. There's a whole complex thing. It's related to crude, but it's also on the base oil and the other movements.

Speaker #7: And there's a lot of movement and a lot of things happening—refineries are starting or shutting. So, there's a whole complex process. It's related to crude, but it's also on the base oil and the other movements.

Speaker #8: Right. Just one final question from my side. Wanted to understand as of today, on month-on-month basis, are we seeing a sort of plateau formed for the basoil prices or are we still seeing that the prices increasing on month-on-month basis?

Vignesh Iyer: Right. Just one final question from my side. Wanted to understand, as of today, on month-on-month basis, are we seeing a sort of plateau form for the base oil prices, or are we still seeing that the price is increasing on month-on-month basis?

Speaker #7: So, as I mentioned in one of the previous questions, there are seven or eight grades of base oil—from light neutrals to heavy neutrals to synthetic, or very advanced Group III base oils.

Manish Gangwal: As I mentioned in one of the previous questions, there are seven, eight grades of base oil, from light neutrals to heavy neutrals to synthetic or very advanced Group III base oils. In some categories, the prices are still moving up as we speak. In some categories, there have been some softening in the pricing in the last one month. It is depending on which group of base oil we are talking about also and demand supply in that particular group. Suddenly, Group III base oils have become very scarce. The prices continue to rise. Depending on grade to grade, the situation is different.

Speaker #7: In some categories, the prices are still moving up as we speak. In some categories, there has been some softening in pricing in the last one month.

Speaker #7: So, it is depending on which group of base oil we are talking about also. And demand and supply in that particular group—suddenly, group three base oils have become very, very scarce.

Speaker #7: The prices continue to rise, so depending on grade to grade, the situation is different.

Speaker #8: Right, right. Got it, sir. Got it. Thank you. That's helpful.

Vignesh Iyer: Right. Got it, sir. Thank you. That's all from me.

Speaker #7: Thank you.

Speaker #6: Thank you. The next question is from the line of Ankit, an individual investor. Please go ahead.

Manish Gangwal: Thank you.

Operator 2: Thank you. The next question is from the line of Ankit, an individual investor. Please go ahead.

Operator: Thank you. The next question is from the line of Ankit, an individual investor. Please go ahead.

Speaker #8: Yeah, good evening, sir, and congratulations on a good set of numbers. Go by module.

[Analyst] (Daisy Ventures Family Office): Yeah. Good evening, sir, and congratulations for a good set of numbers for my module.

Ankit Minocha: Yeah. Good evening, sir, and congratulations for a good set of numbers for my module.

Speaker #7: Yeah. Yes, yes.

Manish Gangwal: Yeah. Yes.

Speaker #8: So, I have two questions. First, I just wanted to understand what is the exports contribution for this quarter. And the second question is on the battery revenue for this quarter, and how is the battery business going.

[Analyst] (Daisy Ventures Family Office): Sir, I have two questions. I just wanted to understand what is the exports contribution for this quarter, the second question is on the battery revenue for this quarter and how is the battery business going?

Ankit Minocha: Sir, I have two questions. I just wanted to understand what is the exports contribution for this quarter, the second question is on the battery revenue for this quarter and how is the battery business going?

Speaker #7: Battery. So, battery, we have seen a good quarter in most aspects. We are obviously expanding our outlets. So, I think last year we did about 80, right?

Manish Gangwal: Battery. Battery, we have seen a good quarter in terms of sales. We are obviously expanding our outlets. We, I think, last year did about INR 80, right? Close to INR 80 crores.

Speaker #7: Close to 80 crores.

Speaker #8: 80 crore. Almost this quarter.

Ravi Chawla: INR 80 crore, almost this quarter.

Speaker #7: Yeah, and this quarter has seen a much better performance compared to the previous quarter's performance.

Manish Gangwal: Yeah, this quarter has seen a much better performance compared to the quarter performance.

Speaker #8: Oh, yeah. ₹20 crore total turnover in the quarter. Okay.

Ravi Chawla: Yes. INR 20 crore total turnover in the quarter.

Manish Gangwal: Yeah.

[Analyst] (Daisy Ventures Family Office): Okay.

Ankit Minocha: Okay.

Speaker #7: Yeah, so we have seen good growth in the quarter, but obviously, we want to take it up. Normally, we look for 10–15% growth.

Manish Gangwal: Yeah. We have seen good growth in the quarter, but obviously we want to take it up. Normally, we took a 10%, 15% growth. That's how we are planning.

Speaker #7: That's how we are planning.

Speaker #8: Okay. And sir, if only exports—you can mention some percentage contribution. I mean, I remember that it was around 7-8 percent in the past quarters.

[Analyst] (Daisy Ventures Family Office): Okay. Sir, if on the exports, you can mention some percentage contribution. I mean, I remember that it was around 7%, 8% in the past quarters. Has it increased, or is it around the same range?

Ankit Minocha: Okay. Sir, if on the exports, you can mention some percentage contribution. I mean, I remember that it was around 7%, 8% in the past quarters. Has it increased, or is it around the same range?

Speaker #8: Has it increased, or is it around the same range?

Speaker #7: No. So overall, our exports in this quarter have also been in the range of around 9 to 10%.

Manish Gangwal: Overall, our exports in this quarter also has been in the range of around 9% to 10%.

Speaker #8: Okay. Okay. Yeah. Thank you so much.

[Analyst] (Daisy Ventures Family Office): Okay. Thank you so much.

Ankit Minocha: Okay. Thank you so much.

Speaker #7: Thank you.

Speaker #6: Thank you. The next question is from the line of Devang Patil from Samiksha Capital. Please go ahead.

Manish Gangwal: Thank you.

Operator 2: Thank you. The next question is from the line of Devang Patel from Samiksha Capital. Please go ahead.

Operator: Thank you. The next question is from the line of Devang Patel from Samiksha Capital. Please go ahead.

Speaker #8: Thank you for taking my question. I wanted to mention earlier, we are able to take the lead in pricing in a few segments. So just around that, if you can explain—were you referring to the three price increases for each of the months, or are you generally talking about the trend?

Devang Patel: Thank you for taking my question. I heard you mention earlier we are able to take lead in pricing in a few segments. Just around that, if you can explain, were you referring to the 3 price increases for each of the months, or are you generally talking about trend, like over the past two years? Which are the segments and what percentage of revenue do they form?

Speaker #8: Let's say, over the past two years. And again, which are these segments, and what percentage of revenue do they form?

Speaker #7: So Devang, in the B2C segment, there are certain pricing actions that come into the market, and then the prices are made effective. What we can say is that there are many competitors who increase their prices as well.

Ravi Chawla: Devang, it is in the B2C, there are certain pricing which comes into the market, and then the prices are made effective. What we can say is that there are many competitors that take prices up. We also put our price list out. Effective prices is where we feel that there are some segments where sometimes you see certain players taking a step forward. We have seen that in some of the areas in the last maybe 6 months, 1 year, there are some leads which some players are taking, some leads we are also taking. It's a mix of that. That is what I was just referring to. There is no specificity that we have taken this segment and we are leading it.

Speaker #7: We also put our price list out, and effective prices is where we feel that there are some segments where sometimes you see certain players taking a step forward.

Speaker #7: And we have seen that in some of the areas in the last maybe six months or one year, there are some leads where some players are taking some leads, we are also taking.

Speaker #7: So it's a mix of that. So that is what I was just referring to. There is no specificity that we have taken this segment and we are leading it.

Speaker #7: But if I take the last one year, there are some segments where we have gone and made a move in some products—not necessarily as a category, but in some products.

Ravi Chawla: If I'll take the last 1 year, there are some segments where we have gone and made a move in some products, not necessarily as a category, but in some products.

Speaker #7: It's also related to our brand positioning. We believe that, as a brand, we are in the top two or top three if you look at the overall industry.

Devang Patel: Understood.

Ravi Chawla: It's also related to your brand positioning. We believe as a brand, we are in the top 2, and top 3, if you take overall industry. Based on our position and our segment, we do take certain moves where we would, say, reduce a particular promotion or a scheme, try to improve the pricing. I think that's what I was referring to.

Speaker #7: So, based on our position and our segment, we do take certain moves where we would, say, reduce a particular promotion or a scheme, or try to improve the pricing.

Speaker #7: So, I think that's what I was referring to.

Speaker #8: Right, right. Secondly, you mentioned we do not play on inventory. Yet, when I look at the numbers, our inventory has gone up by ₹108 crores this quarter, at the end of the quarter.

Devang Patel: Right. Secondly, you mentioned we do not play on inventory. Yet when I look at the numbers, our inventory has gone up by INR 108 crores this quarter at the end of the quarter. Has that inventory already been liquidated?

Speaker #8: So, was that transient? Has that liquidity inventory already been liquidated?

Speaker #7: So, this is a more edgy, which is now produced at a higher rate. There's nothing to do with the weighted average.

Ravi Chawla: This is a more agile, which is now produced at a higher rate. It has nothing to do with the weighted average.

Speaker #8: Okay, that's all from my side. Thank you.

Devang Patel: Okay. That's all from my side. Thank you.

Speaker #7: Thank you, Devang.

Ravi Chawla: Thanks, Devang.

Speaker #6: Thank you. The next question is from the line of Dhaval from Choice International Limited. Please go ahead.

Operator 2: Thank you. The next question is from the line of Dhaval from Choice International Limited. Please go ahead.

Operator: Thank you. The next question is from the line of Dhaval from Choice International Limited. Please go ahead.

Speaker #8: Yeah, so just to understand, last week—so Mahindra and, of course, MG, and there are about, I understand, 12 OEMs to which there is an approval for direct, as per the annual report.

[Analyst] (Choice International): Yeah. Just to understand the last week, Mahindra and, of course, MG, and there are about, I understand, 12 OEMs to which there is approval for Tyrex as per the annual report. Can you throw some color on are there more partners or there are more players in the market that you are starting to cater to, given there is a higher penetration of EVs into the market in this current situation?

Dhaval Shah: Yeah. Just to understand the last week, Mahindra and, of course, MG, and there are about, I understand, 12 OEMs to which there is approval for Tyrex as per the annual report. Can you throw some color on are there more partners or there are more players in the market that you are starting to cater to, given there is a higher penetration of EVs into the market in this current situation?

Speaker #8: So, is there a further—can you provide some color on whether there are more partners or more players in the market that you have started to engage, given there is a higher penetration of EVs into the market in the current situation?

Speaker #7: Oh, so we have been supplying to most of the bus OEMs, whether it is we have Electra, we have other players like Switch and Olectra, and we have also looked at that.

Ravi Chawla: We have been supplying to most of the bus OEMs, whether it is, we have Olectra, we have other players like Switch and Ohm, and we have also looked at that. There are OEMs like Mahindra, where we have supplied DC chargers, and also part of their dealers also have been buying. In the last quarter, we have also got some construction OEMs who have started buying us and a few more charge point operators. We continue to work with all the OEMs. I think for Tyrex business, we are quite strong on the bus OEMs, as we mentioned quite often. We also supply AC chargers to MG and VinFast. These are two of the other brands.

Speaker #7: Then there are OEMs like Mahindra, where we have supplied DC chargers, and also some of their dealers have been buying. In the last quarter, we also got some construction OEMs who have started buying from us.

Speaker #7: And a few more ChargePoint operators. And we continue to work with all the OEMs, and I think for direct business, we are quite strong in the bus OEMs, as we mentioned quite often.

Speaker #7: We also supply AC chargers to MG and VinFast. So these are two of the other brands. And we have looking at further expanding into getting into other OEMs looking at expanding our we have also got direct chargers in some of the petrol stations.

Ravi Chawla: We are looking at further expanding into getting into other OEMs. We have also got Tyrex chargers in some of the petrol stations, and we're looking at a lot of those other areas. For us, it is mainly to go where the growth is and where the usage and reliability are important.

Speaker #7: And we're looking at a lot of those other areas. But for us, it is mainly to go where the growth is and where usage and reliability are important.

Speaker #8: And just to follow up on this, as far as these chargers are concerned, is it that Tyrex itself has a charging station, or is it more to do with...?

[Analyst] (Choice International): Just to follow up on this, as far as these chargers are concerned, is it that Tyrex itself has a charging station and more to do with, let's say, it's like a tire discount store. Is there a business opportunity there wherein Tyrex itself will have its own charger and you plan to set up across India or any sort of this thing that is there, or it's only that the DC chargers and AC chargers would be supplied, let's say there's not going to be any charging station of Tyrex itself. Is there an opportunity for Tyrex in that front?

Dhaval Shah: Just to follow up on this, as far as these chargers are concerned, is it that Tyrex itself has a charging station and more to do with, let's say, it's like a tire discount store. Is there a business opportunity there wherein Tyrex itself will have its own charger and you plan to set up across India or any sort of this thing that is there, or it's only that the DC chargers and AC chargers would be supplied, let's say there's not going to be any charging station of Tyrex itself. Is there an opportunity for Tyrex in that front?

Speaker #8: Let's say it's a tire, the discount, so is there a business opportunity there wherein Tyrex itself will have its own charger, and do you plan to set it up across India, or anything of this sort, or is it only that the DC chargers and EC chargers would be supplied?

Speaker #8: Let's say there aren't going to be any charging stations from Tyrex itself. Is there an opportunity for Tyrex in that trend?

Speaker #7: I think what you're talking about is the CPO business. Yeah, ChargePoint. And we have not yet—Tyrex is so far not into a CPO business.

Ravi Chawla: I think, Dhaval, what you're talking about is the CPO business.

[Analyst] (Choice International): Yeah, charge point operator.

Dhaval Shah: Yeah, charge point operator.

Ravi Chawla: Tyrex is so far not into a CPO business. We are manufacturing chargers, CPM, charge point manufacturers.

Speaker #7: We are manufacturing chargers for CPM and ChargePoint manufacturers. And the CPO as a business is a cash-guzzling business, as we understand, in the beginning.

Ravi Chawla: CPO as a business is a cash-guzzling business, as we understand in the beginning. There's a long gestation period and lot of cash burn before it becomes profitable, because utilization levels in India are still very low, especially for the public chargers. Unless the utilization level significantly improves, which again depends on the number of vehicle park, which will be built over the years. India is very early in this stage of journey of EV. If in future there is a business case to invest some money in creating a charging infra, the company will look at it. As of now, we want to first make chargers and sell it and build our chargers in a very robust platform. We are doing lot of technically advanced features in the chargers. With our also global company, Indra, AC chargers are also very advanced chargers.

Speaker #7: There's a long gestation period, and a lot of cash burn before it becomes profitable, because utilization levels in India are still very, very low.

Speaker #7: Especially for the public chargers. And unless the utilization level significantly improves—which, again, depends on the number of vehicles on the road, which will be built over the years—India is very early in this stage of the EV journey.

Speaker #7: And if, in the future, there is a business case to invest some money in creating a charging infra, the company will look at it. But as of now, we want to first make chargers and sell them.

Speaker #7: And we build our chargers on a very, very robust platform. We are also integrating a lot of technically advanced features into our chargers. Additionally, with our global company, Indra, our AC chargers are also very advanced chargers.

Speaker #7: So, we want to go from that route of building a solid, technically one of the best products, and the CPO opportunity, we will evaluate at an appropriate time, not in the near future.

Ravi Chawla: We want to go from that route of building the solid, technically one of the best product. CPO opportunity, we evaluate at appropriate time, not in the near future.

Speaker #8: Okay. That's a good thing.

[Analyst] (Choice International): Okay. That's appropriate.

Dhaval Shah: Okay. That's appropriate.

Speaker #7: Thank you.

Ravi Chawla: Thank you.

Speaker #6: Thank you. The next question is from the line of Kirtan from Baroda BNP Paribas Mutual Fund. Please go ahead.

Operator 2: Thank you. The next question is from the line of Kirtan from Baroda BNP Paribas Mutual Fund. Please go ahead.

Operator: Thank you. The next question is from the line of Kirtan from Baroda BNP Paribas Mutual Fund. Please go ahead.

[Company Representative] (Baroda BNP Paribas Mutual Fund): One more follow-up question. How much portion of the INR 109 crore relates to the change in value for the finished goods inventory?

Kirtan Mehta: One more follow-up question. How much portion of the INR 109 crore relates to the change in value for the finished goods inventory?

Speaker #8: One more follow-up question. How much of the ₹109 crore relates to the change in value for the finished goods inventory?

Speaker #7: Which one you're saying?

Manish Gangwal: Which one you are saying?

Speaker #8: We have 109 crore of sort of the inventory change in inventory numbers reported into the P&L. How much of that is related to the finished goods inventory and particularly due to the change in value of the finished goods inventory?

[Company Representative] (Baroda BNP Paribas Mutual Fund): We have INR 109 crore of sort of the change in inventory numbers reported into the P&L. How much of that is related to the finished good inventory, and particularly due to the change in value of the finished good inventory?

Kirtan Mehta: We have INR 109 crore of sort of the change in inventory numbers reported into the P&L. How much of that is related to the finished good inventory, and particularly due to the change in value of the finished good inventory?

Speaker #7: You see, basically this value is derived as the difference between the value of closing inventory as of 30th June and as of 31st March.

Manish Gangwal: You see, basically, this value is derived as the difference between the value of closing inventory as of 30 June and as of between the 31 March. It's the combined value of the change in inventory because the value of the inventory has gone up tremendously, we all know that, during this period. That's why this INR 109 crore figure is coming. Whether it is coming from FG or RM is not relevant because overall the impact of this inventory will be taken care of in the price increases, which have already been taken in the last quarter and will accordingly be reflected in the coming quarter's revenue.

Speaker #7: It's a combined value of the change in inventory because the value of the inventory has gone up tremendously—we all know that during this period.

Speaker #7: That's why this ₹109 crore figure is coming. Whether it is coming from FG or RM is not relevant, because overall, the impact of this inventory will be taken care of in the price increases which have already been taken in the last quarter and will accordingly be reflected in the coming quarter's revenue.

Speaker #8: Sure, sir. Thank you.

[Company Representative] (Baroda BNP Paribas Mutual Fund): Sure, sir. Thank you.

Kirtan Mehta: Sure, sir. Thank you.

Speaker #7: Thank you.

Manish Gangwal: Thank you.

Speaker #6: Thank you. Ladies and gentlemen, that was the last question. I would now like to hand the conference over to management for closing comments.

Operator 2: Thank you. Ladies and gentlemen, that was the last question. I would now like to hand the conference over to the management for closing comments.

Operator: Thank you. Ladies and gentlemen, that was the last question. I would now like to hand the conference over to the management for closing comments.

Speaker #2: Yeah. Thank you, everybody, for your patient hearing. I hope we were able to answer all your questions to the best of our ability. Looking at what has been the quarter—which is a record-breaking quarter—obviously, we've tried to explain how it has worked for us.

Manish Gangwal: Thank you everybody for patient hearing. I hope we have been able to answer all your questions to the best of our ability. Looking at what has been the quarter, which is a record-breaking quarter, obviously, we've tried to explain how it has worked for us. Very happy with it. Of course, as we look at the future, we want to look at a sustained growth momentum, both in terms of volume and value, which has been our sort of mantra. Our focus will be to remain on the industry-leading performance across segments, and obviously 2 to 3x market growth is what we look at, double-digit value growth. In terms of our execution and supply resilience, I think what we saw in Q1, we obviously want to carry it forward and gauge the situation going forward.

Speaker #2: Very happy with it. And, of course, as we look at the future, we want to ensure sustained growth momentum, both in terms of volume and value, which has been our sort of mantra.

Speaker #2: So our focus should be to remain on the industry-leading performance across segments and obviously two, two, three X market growth is what we look at, double-digit value growth.

Speaker #2: In terms of our execution and supply resilience, I think what we saw in Q1, we obviously want to carry it forward and gauge the situation going forward.

Speaker #2: We have definitely seen pricing pressure, as we also tried to explain in a comparative environment. And while this quarter will be a seasonally impacted quarter, we'll continue to focus on demand fulfillment, sales execution, healthy customer engagement, and, of course, manage our margins with our product mix and operational efficiency.

Manish Gangwal: We have definitely seen pricing pressures, as we also tried to explain, in a competitive environment. While this quarter will be a seasonally impacted quarter, we'll continue to focus on demand fulfillment, sales execution, healthy customer engagement, and of course, manage our margins with our product mix, our operational efficiency. Really for us, that's the endeavor to continue doing that. Gulf is a strong brand and the distribution also growing. As a brand-led distribution B2C business, we are really focusing on that in terms of increasing our reach, both in terms of outlets, in terms of garages right across, and of course, building customer trust. Brand investments are on, as we also explained that we have continued that even in Q1, and really that's where we want to bring the category brands alive. Overall, I think that's been the outlook.

Speaker #2: And really, for us, that is the endeavor—to continue doing that. Gulf is a strong brand, and the distribution is also growing. So, as a brand-led distribution B2C business, we are really focusing on that, in terms of increasing our reach both in terms of outlets and in terms of garages, right across.

Speaker #2: And of course, building customer trust. Brand investments are on, as we also explained, and we have continued that even in Q1. And really, that's where we want to bring the category brands alive.

Speaker #2: So overall, I think that's been the outlook. Of course, we hope that the situation with the state of almost improves. But currently, as we look at it, we do see that it is continuing to the extent that we are not seeing significant changes in what we saw in recent months.

Manish Gangwal: Of course, we hope that the situation with the Strait of Hormuz improves. Currently, as we look at it, we do see that it is continuing to the extent that we are not seeing significant changes in what we saw in recent months. Overall, I think that's the outlook, and we'll continue focusing on e-mobility, looking at opportunities, adjacencies, and new ventures where we can invest. Definitely profitable growth is also the mantra to bring in products that will help us. Overall, we are hopeful that with this very good start to the year, we obviously look at a year which will be continued success overall. Thank you so much.

Speaker #2: So overall, I think that's the outlook, and we'll continue focusing on e-mobility, looking at opportunities, adjacencies, and new ventures where we can invest. And definitely, profitable growth is also the mantra—to bring in products that will help us.

Speaker #2: So overall, we are hopeful that with this very good start to the year, we obviously look at a year which will be continued success overall.

Speaker #2: Thank you so much.

Speaker #6: Thank you. On behalf of ICICI Securities and Gulf Oil, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Operator 2: Thank you. On behalf of ICICI Securities and Gulf Oil, that concludes this conference. Thank you for joining us, and you may now disconnect your line.

Operator: Thank you. On behalf of ICICI Securities and Gulf Oil, that concludes this conference. Thank you for joining us, and you may now disconnect your line.

Manish Gangwal: Krishna cash flow

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Q1 2027 Gulf Oil Lubricants India Ltd Earnings Call

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