Gandhar Oil Refinery Q2 Results Posted Steller results: Net profit jumps over 4-fold, revenue surges 73%

Key Highlights

●      Consolidated net profit rose 368% YoY to ₹186 crore in Q2FY27

●      Revenue hit a record high of ₹1,847 crore, up 73% YoY

●      Exceptional item of ₹21.29 crore booked for flood-related losses at Silvassa unit

●      Trade receivables increased significantly to ₹1,338.95 crore from March-end levels

●      CRISIL reaffirmed A+/Stable rating with enhanced bank facilities

This performance contrasts sharply with the sequential decline noted in prior reporting periods, highlighting strong year-on-year momentum. The company’s EBITDA expanded significantly to ₹288 crore, reflecting improved operational efficiency and favorable market conditions despite geopolitical headwinds in West Asia.

The gross margin spread sustained at ₹29,128 per kl, which is 3.0x higher than the previous year, directly contributed to this profitability surge. H1FY27 revenue stood at ₹3,579 crore, up 82% YoY, while H1FY27 PAT reached ₹392 crore, a 495% increase.

While the existing article highlighted a quarter-on-quarter dip in profitability relative to the immediate preceding quarter, the new data reveals a robust year-on-year trajectory. Revenue growth of 73% was accompanied by a disproportionate 337% increase in EBITDA, indicating substantial operating leverage and margin expansion rather than the contraction previously observed in sequential terms.

A key divergence is visible between the top-line growth and margin expansion. While revenue grew 73%, the gross margin percentage jumped 880 bps YoY to 21.0%, and EBITDA margin expanded 940 bps YoY to 15.6%. This suggests that the profitability surge was driven not just by volume or price increases, but by a significant improvement in the manufacturing gross margin spread, which rose from ₹130 per kl in Q2FY26 to ₹388 per kl in Q2FY27.

The balance sheet reflects significant working capital expansion alongside revenue growth. Consolidated trade receivables surged to ₹1,338.95 crore as on September 30, 2026, from ₹720.88 crore as on March 31, 2026. Concurrently, inventories increased to ₹736.78 crore from ₹644.31 crore over the same period.

Despite the high receivables, the company generated positive operating cash flows of ₹179.74 crore in H1FY27, compared to ₹127.77 crore in FY26. This indicates that despite the buildup in working capital assets, the underlying cash generation remained robust, supported by strong profitability before tax of ₹511.85 crore in the half-year.