Gulf Oil Lubricants India Ltd Management Discussions

Disclaimer

The Management Discussion and Analysis (MD&A) of Gulf Oil Lubricants India Limited has been prepared in accordance with Regulation 34(2)(e) read with Schedule V (Part B) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This section provides an overview of the Company?s operational and financial performance, key industry trends and future outlook.

This MD&A may contain certain statements that constitute “forward-looking statements”, reflecting the Company?s current expectations, estimates and projections regarding future events. These statements are based on management?s assumptions and beliefs in light of information presently available and can be identified by words such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, “plan”, “project”, “seek”, “target” or similar expressions.

Key factors that may lead to actual results differing materially from those indicated in such statements include, among others, shifts in economic conditions, changes in regulatory and taxation frameworks, evolving industry dynamics, volatility in input costs and other unforeseen circumstances. Accordingly, readers are advised to exercise caution and not place undue reliance on these forward-looking statements. The Company does not assume any obligation to update or revise such statements to reflect subsequent developments or events, except where mandated by applicable laws and regulations

Executive Summary

Gulf Oil Lubricants India Limited (“GOLIL” or “the Company”) is one of the leading players in the Indian private lubricants sector, engaged in the manufacturing, marketing and distribution of a diversified portfolio of automotive and industrial lubricants across B2C and B2B segments. The Company has built a strong pan-India presence supported by an extensive distribution network of retail touchpoints, auto and industrial distributors and a wide base of OEM and B2B customers, enabling deep market penetration across urban and rural markets.

The Company?s operations are anchored by advanced manufacturing facilities at Silvassa and Chennai, supported by robust R&D capabilities that drive product innovation and localisation. GOLIL has consistently outperformed industry growth, supported by a balanced business mix, strong OEM partnerships and a continued focus on industry-leading high performance premium products, which has enhanced both volume growth and margin profile over the years.

In addition to its core lubricants business, the Company is strengthening its presence in emission-compliant and future mobility solutions, including AdBlue? and strategic investments across the EV ecosystem through Tirex Transmission, Indra Renewables and ElectreeFi. With a differentiated business model focused on distribution strength, OEM integration, solution-led offerings and value-added service capabilities for its B2B customers, GOLIL remains well-positioned to deliver sustainable growth while adapting to evolving industry dynamics and technological shifts.

Ravi Chawla

Managing Director and Chief Executive Officer

The Company delivered another strong year of topline performance, with consolidated revenue surpassing H4,000 crores, supported by growth across B2C, B2B and OEM segments and delivering double-digit lubricants volume growth, outperforming industry growth by over 2-3x. The Company achieved record high lubricants volume, Revenue and EBITDA for the full year. Our robust business model, diversified portfolio and disciplined execution played an important part in this performance.

We also made progress across the markets we serve. Brandbuilding, capacity expansion and product development helped us gain further traction across key segments.

Passenger Car Motor Oils (PCMO) and agriculture- related products recorded strong double-digit growth, while Motorcycle Oils, Commercial Vehicle Oils also delivered healthy performance. We strengthened our OEM associations and our OEM Franchise Workshop (FWS) business recorded robust double-digit growth supported by sustained momentum across existing partnershpis.

New premium and synthetic formulations added to our portfolio. Supported by this premiumisation strategy, the Company?s premium product portfolio continued to outperform, delivering growth at approximately twice the industry rate. Brand equity, a wide distribution network and a balanced portfolio of segments remain important advantages. We also added relationships with leading construction equipment manufacturers and OEMs, giving us a wider presence across infrastructure and industrial markets.

The Company was also recognised as one of ‘India?s Best Managed Companies 2025? by Deloitte India. We value this recognition because it acknowledges the way we have built the business, our strategy and our values.

Unlock 2.0 gives us a clear direction for the next phase. We see room to grow the core business faster, increase the contribution from premium products, digitise our systems and develop new sources of growth, while maintaining financial discipline.

At the same time, its EV subsidiary, Tirex, also continued to gain momentum. Revenue crossed H100 Crore, supported by addition of marquee customers. The business has built capabilities across EV charging and is now at a stage where we can pursue its opportunities with greater scale. We see e-Mobility as an important pillar of Gulf Oil?s growth agenda over the medium to long-term.

Key Strengths
Strong Brand Positioning	Operates under the globally recognised Gulf brand having 125 years of trusted legacy, an extensive product portfolio catering to diverse customer needs, strong brand recall with top 2/3 brand in india having high brand recognition scores and consistent product quality across automotive and industrial segments.
VSl! Extensive Distribution Network	Extensive pan-India distribution network ensures strong reach across urban and rural markets.
Leadership in OEM Segment	Long-standing partnerships with over 50 leading OEMs supported by strong product quality, technical expertise and service capabilities.
? Growing Industrial Lubricants Presence	Expanding footprint across manufacturing, mining and construction with application-specific solutions.
Premiumisation & Solution-Led Approac	Increasing share of premium and synthetic products supports superior performance, improved h product mix and sustained margin resilience.
Technology & Product ht Innovation	Strategic collaborations and continuous R&D, with our Global centre in Ennore (Chennai), enable advanced formulations aligned with evolving industry standards and customer requirements.
Qj) Future proofing with Focus on EV Segment	Developed a full range of specialised fluids for electric vehicles and strengthening the strategic investments made in EV Charging ecosystem.

Business landscape Macroeconomic Review Global economic environment1

In Calendar Year (CY) 2025, the global economy remained resilient despite persistent geopolitical tensions, evolving trade dynamics and episodes of financial market volatility. Global GDP growth was steady at approximately 3.5%, supported by stable consumer demand, improving supply chain conditions for most part of the year and continued investment in technology and digital infrastructure.

Growth trends, however, remained uneven across regions, reflecting structural differences in economic momentum and policy environments. Global commodity and energy prices continued to witness periodic fluctuations, although overall supply conditions improved progressively.

Advanced economies recorded relatively moderate expansion of around 1.9%, while emerging market and developing economies outperformed with growth of approximately 4.5%, supported by robust domestic demand and sustained infrastructure investment.

World Economic Outlook Growth Projections

(Real GDP, annual percent change - Source - IMF, World Economic Outlook, July 2026)

Global crude oil movement

Global crude oil markets remained volatile during the latter part of FY 2025-26, driven by escalating geopolitical tensions in West Asia and refinery turnaround activities and evolving demand-supply dynamics. Brent crude prices increased from around US$69 per barrel in January 2026 to briefly exceeding US$100 per barrel during March 2026. The sharp price movements reflected heightened uncertainty in global energy markets and concerns over potential supply disruptions. It subsequently started to moderate by the end of May 2026 as geopolitical tensions eased and supply concerns marginally reduced. While market conditions are stabilising, the evolving geopolitical environment continues to be very volatile and requires close monitoring.

Global Crude Oil Price Trend (US$ per barrel)

Outlook2

Looking ahead, global economic growth is expected to remain moderate, with GDP projected to expand at around 3.0% in CY 2026 and 3.4% in CY 2027, although the outlook continues to be shaped by persistent geopolitical uncertainties and evolving trade dynamics.

In this context, the evolving macroeconomic environment underscores the importance of agile and coordinated policy responses across economies to mitigate risks and maintain stability. Fluctuations in energy markets and global trade conditions are expected to influence input costs and demand dynamics across industries, making resilience, supply chain adaptability and strategic responsiveness critical factors in navigating the near to medium term outlook.

Indian Economy

The Indian economy continued to demonstrate strong momentum during FY 2025-26, maintaining its position as the fastest-growing major economy globally. Real GDP grew at an estimated 7.7%, compared to 7.1% in the previous year, supported by resilient domestic demand and sustained government policy support.3 Despite stable underlying demand, infrastructure project execution and construction activity remained subdued during the early part of the year, with consumption and economic activity improving progressively following GST 2.0 reforms, lower inflation and repo rate cuts.

Industrial activity remained resilient, with the manufacturing sector supported by Production Linked Incentive (PLI) schemes, while the automotive sector witnessed healthy growth, driven by rising vehicle penetration, improving rural demand and a gradual upcycle in commercial vehicles.

Infrastructure and mobility-linked developments further supported economic expansion, with high-speed corridors expanding significantly to 5,364 km by December 2025, driving higher utilisation of commercial vehicles and industrial machinery.4 At the same time, EV adoption continued to gain momentum, supported by expanding charging infrastructure, favourable government policies and rising consumer acceptance of sustainable mobility solutions.

Indian Rupee-US Dollar Movement

The rupee depreciated nearly 9.5% against the dollar during FY26, making it one of the sharpest annual declines in recent years. This depreciation was due to a volatile geopolitical environment, continued selling of Indian stocks by FIIs, and other domestic global factors leading to higher import costs, particularly for energy and dollar-denominated inputs, weighed on margins across import-intensive sectors. While Rupee increased the cost of imported raw materials and energy, it also benefited export-oriented businesses and companies with overseas earnings, partially offsetting the impact and preserving Indias relative competitiveness in global markets.

USD ($) TO INR (*) TREND (2025-26)

Outlook

Looking ahead, Indias economic growth is expected to moderate in FY 2026-27, with real GDP projected to grow at around 6.6% amid evolving global conditions.5 Continued government focus on productivity, competitiveness and resilience, supported by capital expenditure and progress on trade agreements such as the India-EU Free Trade Agreement, is expected to support manufacturing, improve logistics efficiency and drive industrial and commercial activity.

The macroeconomic environment is expected to remain supportive, backed by a well-capitalised financial system, resilient domestic consumption and ongoing structural reforms. These factors are expected to facilitate the transition towards higher value-added, performance-driven and sustainable solutions across the energy and industrial sectors.

Industry dynamics Automotive Industry Indian Automotive Industry6

The Indian automotive industry recorded strong growth in FY 2025-26, with all major segments witnessing healthy expansion and reaching record or near-record levels. Passenger vehicles achieved their highest-ever annual sales of over 46 lakh units, registering growth of around 7.9%, while the two-wheeler segment crossed 2.17 Crore units, growing by over 10%, reflecting improved demand across both urban and rural markets. The three-wheeler segment continued its recovery trajectory with robust double-digit growth, supported by increased last-mile mobility demand, while the commercial vehicle segment demonstrated stable performance with signs of cyclical recovery during the year.

This growth was supported by favourable macroeconomic conditions, including improving consumer sentiment, higher disposable incomes, recovery in rural demand and continued infrastructure development. Policy measures, like the rollout of GST 2.0 reforms reducing GST on ICE automotive vehicles substantially, supportive financing environment, further aided demand across segments. Additionally, the RBI?s repo-rate cuts have significantly lowered the Total Cost of Ownership easing financing for consumers and strengthening overall market sentiment. While electrification is gradually gaining traction across select categories, particularly in two- and three-wheelers, internal combustion engine vehicles continue to dominate the overall vehicle mix, sustaining demand across conventional automotive value chains alongside emerging opportunities in new mobility technologies

Passenger Vehicles6

The passenger vehicle segment in India maintained strong growth momentum during FY 2025-26, supported by favourable consumer sentiment, improved affordability and continued demand across utility vehicles and premium categories. The segment recorded its highest-ever annual sales of approximately 46.43 lakh units, reflecting a growth of around 7.9% year-on-year, driven by new model launches, feature upgrades and a sustained shift towards higher-value vehicles.

Rising disposable incomes following personal income tax relief, lower financing costs, GST 2.0 rate rationalisation on select passenger vehicles benefiting mid-segment buyers, and an increasing preference for personal mobility continue to support structural demand growth.

Two-Wheelers6

The two-wheeler segment witnessed a strong recovery during FY 2025-26, emerging as a key growth driver within the Indian automotive industry. The segment recorded its highest-ever annual sales of 2.17 Crore units, reflecting a growth of around 10.7% year-on-year, surpassing its previous peak levels. Growth was largely supported by improved consumer sentiment, aided by policy measures such as GST 2.0 reforms, enhanced purchasing power and demand. While the first half of the year remained relatively subdued, the second half saw a sharp acceleration, with demand picking up significantly across both urban and rural markets. Export performance also remained robust, reaching record levels, supported by expanding global acceptance of Indian products and favourable currency movements. Additionally, increased traction in electric two- wheelers and rising urban mobility needs further contributed to the overall growth momentum during the year.

Commercial Vehicles & Tractor6

The Indian commercial vehicle segment witnessed a strong recovery during FY 2025-26, supported by improving economic activity, higher freight movement and continued infrastructure and mining investments. The segment recorded its highest-ever annual sales of approximately 10.80 lakh units, reflecting a growth of around 12.6% over the previous year, indicating a broad-based improvement across both medium & heavy and light commercial vehicle categories. Growth momentum strengthened in the second half of the year, driven by increased demand for goods transportation, replacement cycles and improved financing conditions. Additionally, rising activity in sectors such as construction, cement, steel and logistics contributed to higher vehicle utilisation levels, supporting fleet expansion. Overall, the segment remained closely linked to macroeconomic and infrastructure trends and exited the year on a strong footing, reinforcing its role as a key indicator of industrial and economic activity.

The tractor segment also delivered a strong performance during the Year, supported by favourable monsoons, pre-buying ahead of TREM V emission norms and improving farm cash flows and higher rural income levels. Domestic sales crossed the 10-lakh unit mark for the first time, registering a robust 18.95% YoY growth, reflecting improving rural sentiment and increasing farm mechanisation across agricultural markets.7

Industrial & Infrastructure, Mining and Fleet Indian Industrial Development

India?s industrial sector demonstrated steady growth during FY 2025-26, supported by improving manufacturing activity, infrastructure development and sustained capital investment. The Index of Industrial Production IIP recorded overall growth of around 4.1% during the year, with manufacturing the largest component growing by approximately 5.0%, reflecting broad based expansion across key industries. Growth was driven by strong performance in sectors such as basic metals, machinery and motor vehicles, supported by increased demand from infrastructure construction and capital goods segments. Overall, the sector remained supported by government led infrastructure spending improving domestic demand and ongoing industrialisation reinforcing its role as a key driver of economic growth.

All India Index of Industrial Production

Infrastructure, Mining & Fleet

India?s Infrastructure, Mining & Fleet segment continued to witness steady progress during the year, supported by sustained expansion in road infrastructure and improving freight efficiency. The national highway network expanded significantly, with increased length of multi-lane highways and expressways enhancing connectivity and logistics efficiency. Under Bharatmala Pariyojana Phase I, a substantial portion of the awarded road projects has been completed, alongside the operationalisation of access-controlled high-speed corridors and expressways. These developments have contributed to a notable improvement in average freight speeds, supporting higher fleet utilisation, improved turnaround times and enhanced operating efficiency across the transport and construction ecosystem. Overall, continued infrastructure development remains a key enabler for commercial vehicle movement and logistics-led economic activity.

The mining segment maintained strong momentum during FY 2025-26, with captive and commercial coal production surpassing 200 million tonnes, reflecting a year-on-year growth of 10.56%. Sustained infrastructure expansion alongside robust mining activity continued to act as key drivers supporting lubricant demand across the infrastructure, mining and fleet segments.8

Indian Lubricant Industry9

India?s lubricant industry remained amongst top 3 lubricants markets globally and continued to demonstrate steady growth, supported by expanding automotive parc, rising freight movement and sustained industrial activity across key end-user sectors. The domestic lubricant market is expected to continue to grow at a volume CAGR of 3-4% and a value CAGR of 6-8% atleast until 2033. The industry remains supported by increasing vehicle ownership, growth in commercial fleet operations and continued demand from manufacturing and infrastructure-linked activities, reinforcing India?s position as a significant lubricant consumption market.

The Indian lubricant industry continues to be broadly categorised into automotive and industrial lubricants, with demand trends shaped by vehicle usage intensity, equipment performance requirements and evolving preference for higher- performance formulations. Growth in the sector is being aided by increasing adoption of advanced lubricants, including synthetic products, alongside rising consumption from automotive, industrial manufacturing and construction-related applications. These trends are expected to support demand across product categories and contribute to the industry?s gradual shift towards value-added offerings.

Growth Drivers

Rising vehicle ownership, higher utilisation and expanding passenger, two-wheeler, commercial vehicle and tractor populations are increasing the frequency of lubricant consumption across factory-fill and aftermarket applications.

Investment in manufacturing, infrastructure, mining, construction and logistics is increasing the installed base of machinery and commercial equipment, creating sustained demand for industrial and heavy-duty lubricants.

Newer engines, equipment and operating conditions are raising requirements for fluid performance, specification compliance and application-specific protection, supporting a gradual shift towards higher-value lubricant products.

The expansion of OEM service networks, organised workshops and branded service channels is creating a more structured route to customers and increasing the role of trusted lubricant brands in maintenance decisions.

Opportunity and Challenges Opportunities

Move Customers Up the Value Curve	Build Technical Depth in Industrial Applications
Increase the contribution of synthetic, semi-synthetic and application-specific products by matching higher-value formulations to changing vehicle and equipment requirements.	Expand participation in specialised applications across manufacturing, construction, mining and logistics where product performance, technical advice and application knowledge influence purchasing decisions.
Capture More of the Vehicle Lifecycle	Convert Brand Trust into Aftermarket Share
Use OEM relationships and authorised service networks to participate beyond factory fill, building greater presence through scheduled maintenance, replacement cycles and service workshops.	Use Gulf?s brand, distribution network and customer relationships to gain share as consumers and mechanics increasingly move towards organised workshops and branded products.

Challenges

Crude Oil Price Volatility

Fluctuations in crude oil prices amid geopolitical tensions and supply disruptions directly impact base oil costs and overall profitability. This creates pricing pressure and margin uncertainty for lubricant manufacturers for a short to medium-term period.

Counterfeit & Unorganized Market

The presence of counterfeit and low-quality products affects brand reputation and customer trust. It also creates pricing pressure for organized players in the market.

Rupee Depreciation

Rupee experienced increased volatility and depreciated by nearly 11% during FY 2025-26, raising import costs and exerting pressure on margins. Continued INR depreciation vs US Dollar impacts input costs.

Longer Drain Intervals

Technological advancements have increased lubricant life, reducing replacement frequency. While beneficial for consumers, it limits volume growth for industry.

Increasing Competition

The Indian lubricants industry remains highly competitive, with the presence of public sector oil marketing companies and multinational brands. Differentiation through innovation, brand strength and distribution remains critical to sustaining growth.

Business Performance

The Company delivered a strong double-digit volume growth and well-balanced performance during the year consistently outperforming the industry volumes by over 3x. Growth was broad-based, supported by improved traction across core product categories in B2C and sustained momentum across key end-user industries in B2B, strong OEM segment growth build over the years, reflecting strengthened execution, deeper market penetration and a diversified business mix.This was further supported by a clear focus on premiumisation, category-led strategies and stronger integration across marketing, sales and product development. Key initiatives, including product launches and re-launches, expansion of synthetic offerings, enhanced mechanic engagement, and improved retail visibility, strengthened demand generation and conversion. Backed by an agile execution-led model and a balanced portfolio, the Company remains well positioned to sustain its above industry growth momentum.

Automotive Personal Mobility

The Personal Mobility segment delivered a stable performance during the year, supported by a strong focus on premiumisation and category expansion. Key initiatives included the launch of high-end motorcycle synthetic products and the relaunch of passenger car lubricant portfolios with fuel-agnostic formulations, supported by a comprehensive SKU strategy across vehicle types.

Recognizing mechanics as key influencers and quasiconsumers, Gulf Oil has continued to invest in direct, onground engagement programs. At the forefront is the M-Power program, designed to connect with mechanics nationwide through a large-scale field network. With large number of M-Power Rangers deployed, the initiative fosters strong one- on-one relationships, drives demand generation and builds brand advocacy, demonstrating Gulfs deep and sustained commitment to the mechanic community.

The Company strengthened mechanic engagement through the Gulf Pride Maha Mechanic Gratification initiative, which witnessed participation from over 45,000 mechanics across the country. As part of the initiative, 20 selected mechanics received an exclusive opportunity to interact with M.S. Dhoni, engaging in conversations around motorcycles, precision, discipline and workmanship excellence. The initiative culminated with the inauguration of a mechanic workshop by M.S. Dhoni, further reinforcing brand connect within the mechanic community.

The Company launched new variants of Gulf Syntrac, a range of fully synthetic, high-performance engine oils for premium and high-end motorcycles, reflecting its focus on innovation and premiumization. Powered by Ester Technology and latest API SP certification, Gulf Syntrac is designed to deliver sustained peak performance even under the most demanding riding condition. Marking its third consecutive year as the event?s main sponsor, Gulf Oil returned to India Bike Week (IBW)- India?s Biggest Biking Event, held in Panchgani, to engage directly with India?s passionate riding community and spotlight its performance- led portfolio for higher end bikes. Powered by the all-new Gulf Syntrac, the standout highlight was Gulf Oil displaying a real MotoGP race bike in collaboration with the Trackhouse MotoGP Team for the first time in India in an iconic Gulf livery, bringing top-tier racing technology closer to Indian fans.Pride

The segment also aligned with evolving market dynamics through targeted programs such as the custom car workshop initiative, addressing the shift from retail outlets to organised workshops. Strengthened mechanic engagement, simplified trade programs and enhanced distribution execution supported demand generation and market penetration.

Commercial Vehicle Oil (CVO)

The Commercial Vehicle Oil (CVO) segment maintained strong momentum during the year, supported by its established premium positioning and expansion into advanced lubricant categories aligned with evolving engine technologies. The segment strengthened its presence through focus on next-generation formulations, including higher-grade products suited for newer emission norms, while building on its OEM-aligned portfolio. Under the “Think National, Win Local” strategy, the segment continues to strengthen its brand Gulf Duramax. As part of local engagement, it connected with over 600 fleet owners across five regional events celebrating top operators and reinforcing the brands association with reliability and performance.

Emerging opportunities in fuel segments and the increasing relevance of fleet-led demand supported growth potential, alongside strategic initiatives to enhance product relevance and market reach. Overall performance was supported by continued focus on premium offerings, strong market execution and alignment with evolving customer requirements in the commercial vehicle ecosystem.

OEM Business Segment

The OEM business segment delivered strong growth during the year, supported by robust performance across both factory fill and franchise workshop channels, continued expansion across key vehicle categories and increasing wallet share with existing OEM partners. The business recorded strong momentum in franchise workshops, supported by deeper engagement with OEM service networks, higher penetration across premium lubricant categories and increasing focus on tertiary consumption growth. Demand remained healthy across commercial vehicles, tractors and other automotive segments, with the tractor category emerging as a key growth driver during the year.

The Company continued to strengthen long-standing relationships with over 50 OEMs across automotive, construction, industrial, AdBue? and EV fluids through successful renewal of partnerships, differentiated service capabilities and sustained engagement across sales, technology, sourcing and service functions. In line with its long-term philosophy of partnership for growth, the Company announced a strategic multi-year renewal of one of the most enduring partnerships with Mahindra & Mahindra Limited (Farm Equipment Business - Mahindra Tractors Division), reinforcing a growing collaboration that has spanned more than a decade. Major products launched for leading OEMs included Gulf VA Superbike Fully Synthetic Engine Oil for Aprilia and Gulf Sure Nxt BS-III for Piaggio Commercial Vehicles.

Focus also remained on premiumisation through the introduction of advanced and higher drain interval products and fuel-efficiency-oriented solutions aligned with evolving BS-VI requirements and changing vehicle technologies. In parallel, the Company enhanced its digital and technical support ecosystem through Salesforce-enabled engagement platforms, dealer analytics, training initiatives and AI-led category programmes, improving channel visibility, service efficiency and customer engagement across OEM networks.

AdBlue

The AdBlue? business continued to witness healthy growth, supported by increasing adoption of BS-VI compliant vehicles, rising emission regulations and growing demand across OEM and aftermarket channels. During the year, AdBlue? volumes increased to 1,51,000 KL, supported by the Company?s extensive distribution network spread pan India, strategic partnerships with multiple OEMs and strong presence across retail, fleet and workshop networks. The Company continued to strengthen its position as a leading supplier of AdBlue? across the country, supported by superior distribution capabilities and focus on high-purity AdBlue? solutions complying with BS-VI standards and reducing NOx emissions. The business also continued to strengthen its quality positioning through VDA certification from Germany for superior quality, OEM approvals and adherence to stringent quality standards across manufacturing and distribution operations. Going forward, the Company expects continued growth in the AdBlue? business supported by increasing adoption of BS-VI compliant vehicles, organised market expansion and continued focus on OEM and aftermarket channels.

Performance of Industrial and Infrastructure, Mining and Fleet Business Segment

Industrial Business Segment

The Industrial B2B Business Segment delivered a strong performance during FY 2025-26, driven by robust growth across key sectors such as manufacturing, infrastructure, mining and auto components. The segment continued to outperform industry growth, supported by a sector- led strategy, deeper penetration in key accounts and expansion of OEM partnerships. Growth was further aided by increasing adoption of premium and synthetic lubricants, particularly in high-performance and application-specific use cases, contributing to improved product mix and higher value realisation.

The segment also benefited from a transition towards solution-led offerings, supported by technical services, customised lubrication programmes and enhanced customer engagement. The Company participated in the Indian Plastics Institute (IPI) Plastotech and ACMEE exhibitions in Chennai, engaging with key stakeholders. The Company also showcased its sustainable, high-performance lubricants and partnerships at CII Excon 2025 in Bengaluru, the largest Construction Equipment exhibition in South Asia.

Some of the next-generation product range engineered for higher efficiency, performance and safety included Fire- Resistant Hydraulic Oil and Energy-Efficient Zinc Free Hydraulic Oil to CEV V Diesel Engine Oil, new Synthetic formulations and Synthetic Gear Oil. The Company enhanced its customer value proposition through an integrated suite of services aimed at improving efficiency, reliability and sustainability across industries. Key offerings included Total Lube Survey, Oil Condition Monitoring, Lube Management Program, Oil Reconditioning and Used Oil Recycling, alongside the launch of the Gulf Lube Selector, a digital tool for right product recommendation across industrial applications. Overall, strong execution, combined with premiumisation and customer-centric solutions, supported consistent growth and reinforced the segment?s position as a key driver of the Company?s overall performance.

Infrastructure, Mining and Fleet

The Company delivered strong and industry-leading performance during the year, significantly outperforming market growth despite a subdued demand environment across key sectors. Performance was driven by a shift to a sector-focused strategy, enabling targeted engagement through customised value propositions, application-driven offerings and strong field execution by sector-aligned teams. The segment also benefited from a structured approach to managing large relationships, improving business depth and value capture, while accelerated adoption of premium and synthetic products supported higher realisations and a clear shift towards performance-led solutions.

The Company entered into strategic partnerships with leading construction equipment manufacturers, strengthening Gulf?s presence in the construction and infrastructure segment.

• Ammann India - Entered into a new partnership with the global leader in road-building machinery as the official lubricants partner for Ammann?s entire equipment portfolio, supplying high-performance products under the Ammann Genuine Oil range.

• ACE (Action Construction Equipment Ltd) -

Collaborated to expand and introduce new additions to the ACE Genuine Oil range.

• XCMG - Partnered to launch XCMG-branded genuine lubricants in the Indian market.

In addition, a solutions-oriented model focused on enhancing customer efficiency, supported by technical services and digital integration through CRM platforms, strengthened pipeline management, conversion timelines and customer engagement, reinforcing the segment?s positioning as a value-driven growth engine within the overall business.

Financial Performance Analysis

Key Highlights (Standalone Audited Financials)

The Company delivered double-digit revenue growth in FY 2025-26, supported by higher lubricant volumes and broad-based performance across key segments. Revenue increased by 12% to H3,99,131 Lakh from H3,55,436 Lakh in the previous year. Lubricant volumes grew in double digits and remained ahead of industry growth, with B2C, B2B and OEM businesses contributing to the increase. Premiumisation and an improved product mix also supported value growth during the year.

EBITDA increased by 9% to H51,038 Lakh from H47,007 Lakh. Profitability was managed against volatility in crude-linked input costs and depreciation of the Indian Rupee, which raised the cost of imported inputs. Calibrated pricing actions, cost management and product-mix interventions partly absorbed these pressures.

Profit before tax stood at H49,401 Lakh, compared with H48,574 Lakh in FY 2024-25. Profit after tax was H35,092 Lakh against H36,225 Lakh in the previous year. Profitability below EBITDA was affected by higher foreign-exchange losses arising from Rupee depreciation and the incremental estimated obligation following notification of the new labour codes. The Company nevertheless closed the year with cash and bank balances of H1,14,057 Lakh and net worth of H1,56,069 Lakh.

Particulars	Year ended March 31, 2026 (Rs. In Lakhs)	Year ended March 31,2025 (Rs. In Lakhs)	Growth (%)
Revenue	3,99,131	3,55,436	12
EBITDA*	51,038	47,007	9
Profit Before Tax (PBT)*	49,401	48,574	2
Profit After Tax (PAT)	35,092	36,225	(3)
Earnings Per Share (EPS) (Basic) (FV - H2)*	74.54	73.57	1

Revenue

Revenue increased by 12% to H3,99,131 Lakh in FY 2025-26, compared with H3,55,436 Lakh in the previous year. The increase was underpinned by double digit lubricant volumes and broad-based growth across B2C, B2B and OEM segments. Gulf Oil maintained its track record of growing much ahead of the lubricants industry, supported by automotive demand and higher activity across key end markets.

Within the portfolio, Passenger Car Motor Oils and the agriculture segment recorded double-digit growth, while the OEM Franchise Workshop business benefited from wider penetration across service networks. B2B Industrial, Infrastructure and Mining also contributed with strong growth, with business coming from new customer additions as well as higher offtake from existing customers. Premiumisation and an improved product mix added to value growth, particularly as demand moved towards higher-value products in selected automotive categories.

The performance was achieved despite a more demanding operating environment towards the end of the year, including volatility in crude-linked inputs, Rupee depreciation and some moderation in the commercial vehicle sector. The breadth of growth across customer segments reduced dependence on any single category and provided a wider base for revenue growth.

Breakup of Various Cost Items as a % of Sales

Particulars	Year ended March 31, 2026 (Rs. In Lakhs)	% of Sales	Year ended March 31,2025 (Rs. In Lakhs)	% of Sales
Sales	3,99,131	100	3,55,436	100
Cost of Goods Sold	2,29,397	57	2,04,803	58
Employee Benefit Expenses	19,991	5	17,498	5
Manufacturing and Other Expenses	98,705	25	86,128	24
Total Expense	3,48,093	87	3,08,429	87
EBITDA	51,038	13	47,007	13
Other Income	9,628	2	9,616	3
Finance Costs	5,397	1	3,460	1
Depreciation/Amortisation	5,868	2	4,589	1
PBT (Profit Before Tax)	49,401	12	48,574	14
Exceptional item	2,264	0	-	-
Tax Expenses	12,045	3	12,349	4
PAT (Profit After Tax)	35,092	9	36,225	10

a) Cost of Goods Sold

Cost of Goods Sold increased to H2,29,397 Lakh from H2,04,803 Lakh, broadly tracking the higher scale of operations. As a proportion of sales, however, it improved sharp to 57% from 58%. This was achieved despite volatility in crude-linked inputs and depreciation of the Rupee, which raised imported input costs considerably. Pricing actions, premiumisation and an improved product mix helped manage these pressures.

b) Manufacturing and Other Expenses

Manufacturing and Other Expenses increased to H98,705 Lakh from H86,128 Lakh, with the ratio to sales moving to 25% from 24%. The increase came alongside higher business volumes and activity across the Company?s B2C, B2B and OEM businesses, as well as investments behind brand and market development. Higher contribution of sales from OEM segment also leads to higher royalty payment to OEMs. The higher expense base should therefore be viewed in the context of the larger operating scale achieved during the year.

c) Employee Benefit Expenses

Employee Benefit Expenses increased to H19,991 Lakh from H17,498 Lakh, while remaining at 5% of sales. The stable cost ratio indicates that the increase in employee costs was absorbed within the higher revenue base.

d) Finance Costs

Finance costs increased to H5,397 Lakh from H3,460 Lakh. Rupee depreciation was an important factor during the year, increasing foreign-exchange losses on imported inputs and foreign-currency exposures. This was one of the main pressures below EBITDA and contributed to the moderation in profit growth despite higher operating earnings.

e) Depreciation and Amortisation

Depreciation and amortisation increased to H5,868 Lakh from H4,589 Lakh, while remaining at 1-2% of sales. The increase came as the Company invested in its asset base, including capacity-related expenditure at its manufacturing facilities. The increase is partially attributable to higher depreciation expenses arising from newly recognised Right-of-Use assets.

Balance Sheet (Standalone)

The balance sheet expanded during FY 2025-26, with total assets increasing by H26,143 Lakh to H2,90,418 Lakh, from H2,64,275 Lakh at the previous year-end. The increase was principally visible in current assets and cash and bank balances. Net worth also increased, while borrowings and current liabilities rose alongside the larger scale of operations.

Particulars	As at March 31st, 2026 (Rs. In Lakhs)	As at March 31st, 2025 (Rs. In Lakhs)	Change (Rs. In Lakhs)
Assets
Property, Plant and Equipment	30,236	28,847	1,389
Other Non-Current Assets (includes Non-Current Financial Assets)	22,988	21,808	1,180
Cash and Bank Balances	1,14,057	1,02,743	10,764
Current Assets (includes Current Financial Assets)	1,23,137	1,10,877	12,810
Total	2,90,418	2,64,275	26,143
Equities and Liabilities
Shareholders Funds/Net Worth	1,56,069	1,46,425	9,644
Non-Current Liabilities (includes Non-Current Financial Liabilities)	5,277	4,235	1,042
Short-Term Borrowings	46,207	41,339	4,868
Current Liabilities (includes Current Financial Liabilities)	82,865	72,276	10,589
Total	2,90,418	2,64,275	26,143

Property, Plant and Equipment

Property, Plant and Equipment increased by H1,389 Lakh to H30,236 Lakh, from H28,847 Lakh. The movement came as the Company invested in its manufacturing asset base to cater to the requirements of a larger business and prepare some capacity for the volume growth.

Other Non-Current Assets

Other Non-Current Assets, including Non-Current Financial Assets, increased by H1,180 Lakh to H22,988 Lakh, compared with H21,808 Lakh at the previous year-end.

Cash and Bank Balances

Cash and Bank Balances increased by H10,764 Lakh to H1,14,057 Lakh, from H1,02,743 Lakh. The higher year- end cash position was backed by the Company?s ability to generate cash from its operations, providing financial capacity for business investment and shareholder distributions.

Current Assets

Current Assets, including Current Financial Assets, increased by H12,810 Lakh to H1,23,137 Lakh, from H1,10,877 Lakh. The increase accompanied the higher operating scale of the business during the year.

Net Worth

Shareholders? Funds/Net Worth increased by H9,644 Lakh to H1,56,069 Lakh, compared with H1,46,425 Lakh at March 31, 2025. The increase added to the Company?s equity base while it also returned profits to shareholders during the year by way of higher dividends.

Liabilities and Borrowings

Non-Current Liabilities increased by H1,042 Lakh to H5,277 Lakh, while Short-Term Borrowings increased by H4,868 Lakh to H46,207 Lakh. Current Liabilities increased by H10,589 Lakh to H82,865 Lakh, alongside the higher scale of business activity.

Cash Flows (Standalone)

The Company generated H36,252 Lakh from operating activities during FY 2025-26, compared with H42,326 Lakh in the previous year. While operating cash generation moderated slightly year-on-year, it remained substantial and supported the Company?s investment requirements, financing outflows and dividend distributions.

Net cash generated from investing activities stood at H1,777 Lakh, compared with H4,940 Lakh in FY 2024-25. Net cash used in financing activities increased to H26,759 Lakh, from H15,252 Lakh in the previous year. Consequently, the net increase in cash and cash equivalents during the year was H11,270 Lakh, compared with H32,014 Lakh in FY 2024-25.

(H In Lakhs)

Details	March 31,2026	March 31, 2025
Net Cash Generated from Operating Activities	36,252	42,326
Net Cash Generated from Investing Activities	1,777	4,940
Net Cash (used) in Financing Activities	(26,759)	(15,252)
Net Increase in Cash and Cash Equivalents	11,270	32,014

Liquidity

Gulf Oil closed FY 2025-26 with Cash and Bank Balances of H1,14,057 Lakh, compared with H1,02,743 Lakh at the previous year-end. The increase came despite higher financing cash outflows during the year and points to the strong cash-generative nature of the underlying business.

The combination of operating cash generation and available liquidity gives the Company capacity to fund its operating requirements and planned investments while retaining flexibility for shareholder distributions and identified growth opportunities

Changes in Key Financial Ratios

Key Ratios	As on 31st March, 2026	As on 31st March, 2025	Variance %
Debtors Turnover (Times)	8.17	7.47	9
Inventory Turnover (Times)	4.45	4.26	5
Debt Service Coverage Ratio (Times)	5.94	8.32	(29)
Current Ratio (Times)	1.84	1.88	(2)
Debt Equity Ratio (Times)	0.33	0.31	5
Net Profit Margin (%)	8.79	10.19	(14)
Return on Equity (ROE - %)	23.20	26.26	(12)

The Company?s working-capital ratios remained broadly stable during FY 2025-26. Debtors Turnover improved to 8.17 times from 7.47 times, while Inventory Turnover increased to 4.45 times from 4.26 times. The Current Ratio stood at 1.84 times, compared with 1.88 times in the previous year.

Debt Service Coverage Ratio declined by 29% to 5.94 times, from 8.32 times. The movement was mainly attributable to higher foreign-exchange losses, which increased to H2,682 Lakh from H579 Lakh, following depreciation of the Indian Rupee during the year. The Debt Equity Ratio stood at 0.33 times, compared with 0.31 times at March 31,2025.

Net Profit Margin moderated to 8.79% from 10.19%, while Return on Equity stood at 23.20%, compared with 26.26% in the previous year. Apart from the movement in Debt Service Coverage Ratio, there was no change of 25% or more in the other key financial ratios reported by the Company.

Operational Highlights

Manufacturing Capabilities

The Company strengthened its manufacturing capabilities during the year through capacity expansion plan in lubricants, higher automation and operational optimisation initiatives aimed at improving scalability, flexibility and execution efficiency. Investments in integrated manufacturing systems, SAP-enabled planning architecture and automated warehousing solutions enhanced production visibility, inventory management and responsiveness to dynamic demand conditions. The Company also focused on productivity improvement, energy optimisation, supply chain resilience and cost-efficiency measures to strengthen operational performance and service continuity. Alongside operational enhancements, focus remained on reinforcing safety systems, sustainable manufacturing practices and energy management initiatives, supporting reliable, efficient and future-ready manufacturing operations aligned with longterm growth objectives.

Read more at page 44 of the Annual Report

Research & Development

The Company continued to advance its research and development capabilities during the year with increased focus on application-specific innovation, premium product development and expansion into emerging technology- led segments. The Company introduced several advanced products across automotive, industrial and EV segments, including next-generation passenger car and commercial vehicle lubricants, EV driveline fluids, specialised industrial fluids and immersion cooling fluids for data centre applications. Focus also remained on strengthening premium and high-performance product offerings through advanced additive technologies, enhanced testing capabilities and closer collaboration with OEMs, additive suppliers and technology partners. In parallel, investments in specialised testing infrastructure further enhanced in-house capability development for emerging applications, supporting the Company?s long-term strategy of building a technology-led and future-ready product portfolio.

Read more at page 48 of the Annual Report

Digital Transformation

The Company continued to advance its digital transformation agenda during FY 2025-26 through deeper integration of enterprise platforms, expanded automation and strengthening of data-driven operating capabilities across functions. Investments in SAP S/4 HANA Cloud, SAP IBP and Salesforce CRM supported improved planning accuracy, supply chain visibility and execution efficiency across manufacturing, distribution and partner ecosystems. The Company further enhanced its analytics infrastructure through scalable data lake architecture and Power Bl-enabled dashboards, enabling real-time monitoring of sales, inventory and channel performance metrics and supporting faster decision-making. Digital engagement platforms such as Salesforce, Ascend Portal, Gulf Universe and Gulf Kart continued to strengthen collaboration with OEMs, distributors and channel partners, while improving operational transparency and responsiveness across the value chain. Focus also remained on strengthening cybersecurity architecture and cloud-enabled infrastructure to enhance resilience, data security and business continuity, while enabling scalable and efficient digital operations across the organisation.

Read more at page 50 of the Annual Report

Sustainability and Environmental Impact

The Company advance its sustainability and environmental agenda through focused business actions spanning cleaner mobility, product innovation and broader ESG-led governance. The Company strengthened its presence in lower-emission mobility solutions through AdBlue?, EV fluids and EV Charger segment which delivered strong growth and expanded customer adoption across bus OEMs and passenger vehicle charging applications, reinforcing Gulf?s long-term commitment to the evolving mobility ecosystem. In parallel, the Company introduced next-generation solutions such as fire-resistant hydraulic oil and energy-efficient zinc-free hydraulic oil, reflecting its emphasis on more efficient and advanced product offerings. Further strengthening its sustainability commitment, both manufacturing plants showcased operational and manufacturing excellence through IGBC certification and ISO 50001 Energy Management System certification. Additionally, the Company achieved the usage of over 20% renewable energy across both plants combined, supporting its continued transition towards cleaner and more sustainable operations.

Read more at page 58 of the Annual Report

Corporate Social Responsibility (CSR)

The Company remains committed to creating sustainable value for communities through focused interventions in the areas of education, skill development, healthcare, road safety and environmental sustainability. During FY 2025-26, its CSR initiatives were aimed at enhancing livelihoods, improving access to essential services and promoting long-term community development in the regions where it operates. These programmes reflect the Companys commitment to inclusive growth and responsible corporate citizenship.

Key CSR Initiatives Undertaken in FY 2025-26

• Kushal Mechanic Training Program

• Suraksha Clinic Project

• Road to School Project

• Road to Livelihood Project

• Rainwater Harvesting and Tree Plantation Initiatives

• Community RO Water ATM Project Read more at page 64 of the Annual Report

Human Resources

The Company strengthened its human resources practices during FY 2025-26 in line with its long-term growth strategy. It continued to nurture a culture defined by commitment, agility and innovation, while drawing strength from a stable and experienced workforce with long employee tenure. During the year, this strong organisational foundation was further reflected in the Company being recognised as one of ‘India?s Best Managed Companies 2025? by Deloitte India, following an assessment across strategy, capabilities and innovation, culture and commitment, governance and finance and ESG. This focus on people continued to support effective execution of business priorities and the Company?s growth journey.

Total Employee Strength (Permanent)

Risk and Concerns

Managing risks early is important for the Company to ensure smooth operations and long-term growth. At Gulf Oil, a well-defined risk management approach is followed across the organisation to identify, evaluate and address potential risks that may impact business performance and objectives.

Risk	Description	Mitigation Strategy
Economic Risk	Demand for lubricants is closely linked to macroeconomic indicators, including industrial production, automotive sales and infrastructure activities. Any slowdown in economic growth, inflationary pressures or moderation in industrial activity may impact lubricant consumption across automotive and industrial segments.	The Company mitigates this risk through diversified presence across automotive and industrial segments, supported by a wide distribution network and strong rural and agricultural reach. Continuous monitoring of macroeconomic trends enables timely alignment of business strategies and demand planning.
Transition to Electric Mobility	Increasing adoption of electric vehicles may gradually alter lubricant demand dynamics over the longer term, particularly in passenger vehicle segments reliant on internal combustion engines.	The Company is adopting a calibrated approach towards emerging mobility by expanding its presence across the EV ecosystem, including charging products and solutions. It continues to develop specialised EV fluids aligned with evolving mobility requirements, supporting long-term portfolio diversification. These timely actions helps the Company view EVs as an additional opportunity.
Raw Material Price Volatility	Base oil and additive prices are influenced by global crude oil and other chemical trends and currency movements. Volatility in input costs may impact margins and pricing stability.	The Company manages this exposure through strategic sourcing, cost optimisation initiatives, prudent inventory management and calibrated pricing actions. Ongoing focus on operational efficiency and supply chain optimisation supports margin resilience.
Human Capital Risk	The ability to attract, develop and retain skilled talent remains critical for sustaining growth and operational effectiveness. Higher attrition or skill gaps may impact productivity and execution.	The Company invests in capability building through structured training, leadership development and employee engagement initiatives. A strong focus on workplace safety and career progression supports retention and workforce productivity.
Foreign Exchange Risk	Fluctuations in foreign exchange rates, particularly the Indian Rupee against the US Dollar, may impact the cost of imported base oils, additives and other raw materials, as also on our foreign currency exposures, thereby affecting profitability and working capital.	The Company closely monitors currency movements and adopts prudent hedging strategies to mitigate forex exposure under advise of eminent forex experts. Diversified sourcing strategies and calibrated pricing actions also help manage the impact of exchange rate volatility.
Competition Risk	The lubricants industry remains highly competitive, with pricing pressures from established players, regional brands and new entrants potentially impacting market share and profitability.	The Company focuses on strengthening brand equity, expanding distribution reach, enhancing customer engagement and driving product innovation. Continued investments in premiumisation and differentiated offerings support competitive positioning across segments.
Technology and Digital Risk	Rapid advancements in manufacturing, digital systems and supply chain technologies require continuous upgradation. Delays in technology adoption may impact efficiency and competitiveness.	The Company continues to invest in digital enablement, automation and process improvements. Ongoing technology upgrades and integration across functions enhance operational efficiency and support scalable growth. Under Unlock 2.0, transformation is a key focus area.
Environmental and Regulatory Risk	The industry operates under evolving environmental regulations relating to emissions, waste management and product standards. Stricter norms may increase compliance requirements and operating costs.	The Company remains committed to regulatory compliance and continuous improvement in environmental performance. Investments in cleaner formulations, energy efficiency and responsible resource management support sustainable operations.

Company Outlook

The Company enters FY 2026-27 with a cautiously optimistic outlook in view of geopolitical undertainity around middle east, which may lead to continued crude volatility, related input cost impacts and supply uncertainties in first half of the year. However, over the full year, the Company remains well- positioned to delivering volume growth at 2-3x the industry rate, while continuing to drive value-led growth through premiumisation, portfolio expansion and a favourable product mix. Strategic priorities include strengthening market share across product categories in Personal mobility, DEO and Industrial segment with sector-led approach, strengthening OEM partnerships, increasing distribution reach across urban and rural markets and enhancing the premium and synthetic product portfolio.

At the same time, the Company continues to strengthen its strategic capabilities through investments in digital enablement, technical services and manufacturing capacity expansion, while maintaining a disciplined focus on execution and customer engagement. Continued investments in customer-centric branding initiatives, mechanic outreach and focus on category growth will support long term growth.

The approach is simple which is to grow the core business strongly while preparing Gulf for the future of mobility. The strategic investments in EV ecosystem is gaining significant momentum and we are growing this segment to become a key future growth driver as part of Company?s long-term strategy while continuing to strengthen the core lubricants business.

The Company will remain watchful of the evolving macroeconomic environment, particularly volatility in crude oil prices and foreign exchange movements, while maintaining focus on sustainable margin improvement and operational efficiency.

Internal Control Systems and Adequacy

The Company takes pride in its strong internal control mechanism that ensures the accurate recording of transactions with internal checks, prompt reporting and strict adherence to applicable accounting standards and compliance with applicable statutes, policies, procedures, guidelines and authorisations. By the Companies Act, 2013, it has successfully adhered to the specific requirements outlined in Section 134(5)(e) of the Act. This entails establishing and implementing an Internal Financial Control (IFC) framework to ensure compliance with the Act and support the Directors? Responsibility Statement. The IFC framework document enables the consistent evaluation of the effectiveness of controls. The internal audit department conducts periodic audits at all locations and functions based on the plan approved by the Audit Committee and promptly addresses any deviation in internal control procedures. The summary of the internal audit observations and status of implementation are submitted to the Audit Committee every quarter for its review and the concerns, if any, are reported to the Board. As a part of their audit procedures, the statutory auditors review the efficacy and adequacy of the internal audit function and have full access to all the reports and findings of the internal audit.

The Company acts as a facilitator and embeds effective systems to deepen interface between Statutory Auditors and Those Charged With Governance (TCWG). Necessary frameworks / advisories/ guard rails will be imbedded in our best practices to ease communication of significant matters contemplated by governance norms between Statutory Auditors and TCWG.