Domino effect: Gandhar Oil’s 20% upper circuit spurs rally in Savita Oil and Panama Petro. Here’s why

Shares of Gandhar Oil Refinery hit the 20% upper circuit at Rs 284 on the BSE on Thursday after the company reported a 689% year-on-year surge in net profit to Rs 206 crore for the June quarter, compared with Rs 26 crore a year ago. The strong earnings also lifted peers, with Panama Petrochem gaining 10% and Savita Oil rising 12%.

Gandhar Oil Refinery's revenue from operations for the quarter under review nearly doubled YoY to 1,732 crore, up 92% from the Rs 903 crore reported in the corresponding quarter of the previous financial year.

EBITDA zoomed over 500% to Rs 281 crore from Rs 46 crore in the same quarter of the previous financial year. Its EPS gained 633% to Rs 19.65 from Rs 2.68 for the quarter under review.


Gandhar Oil management said the PHPO segment continued to drive growth, supported by sustained demand from the personal care, healthcare and pharmaceutical sectors. The PIO business also saw encouraging traction, backed by healthy demand from transformer, power and rubber manufacturers.

Growth in the lubricants segment remained largely stable, while the business continued to make a meaningful contribution to the company's diversified product mix. The company also sustained positive business momentum during the quarter, supported by an expanding export presence and stronger engagement with marquee customers.

Gandhar Oil Q1 management commentary

Gandhar Oil management said the operating environment during the quarter remained dynamic amid geopolitical developments in West Asia, crude oil price volatility and periodic supply chain disruptions. The company responded through agile sourcing, prudent inventory management and a favourable product mix, supporting strong financial performance.

The performance was supported by healthy demand across key end user industries and sustained momentum across product categories. Management said its focus on value added offerings, efficient procurement and cost optimisation helped deliver superior margins while also supporting volume growth.

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Despite global macroeconomic developments and geopolitical uncertainties, management said the underlying demand environment remained encouraging and expressed confidence in sustaining profitable growth and creating long term value for stakeholders.

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