Gandhar Oil Refinery (India) Limited (GANDHAR) AI Stock Analysis

• Market Cap: ₹14.99B
• Dividend Yield: 0.34%
• Average Volume (3M): 10.63K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 1.11
• Revenue Growth: -1.05%
• EPS Growth: -11.57%
• Country: IN
• Employees: 381
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 3.68
• Shares Outstanding: 97,879,530
• 10 Day Avg. Volume: 10,147
• 30 Day Avg. Volume: 10,634
• PEG Ratio: -0.37
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.37
• P/FCF Ratio: -34.01
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ₹182.00 ▲(19.86% Upside)

The score is driven primarily by solid balance-sheet strength but offset by weakening profitability and notably weak cash flow. Technicals remain in an uptrend, though overbought indicators reduce the technical score. Valuation is average with a modest P/E and very low dividend yield.

Positive Factors

Balance sheet strength

Low financial leverage and a strong equity base provide durable financial flexibility. A D/E of 0.25 and 63% equity ratio support capacity to absorb commodity volatility, fund strategic capex or M&A without heavy reliance on external debt, improving long-term solvency.

Diverse product and market exposure

A broad product portfolio across automotive, industrial and specialty lubricants creates multiple, structurally durable revenue streams. Diversified end markets and sales channels (bulk, distributors, retail) reduce single-market dependence and support steady demand over economic cycles.

Operating profitability

Sustained gross and EBIT margins indicate underlying manufacturing and cost efficiencies, enabling the firm to generate operating profits despite top-line pressure. Persistent operating margin strength supports reinvestment capacity and competitiveness in refinery and lubricant operations.

Negative Factors

Weak cash generation

Negative free cash flow and very low cash conversion signal structural challenges converting accounting profits into usable cash. This constrains funding for maintenance capex, dividend policy or debt reduction and raises reliance on external financing during downturns.

Falling revenue and compressed net margin

A multi-percent revenue decline and pronounced net margin compression reflect pricing pressure, higher costs, or mix shifts. Persisting top-line weakness and lower net profitability constrain retained earnings, limit investment in growth initiatives and weaken long-term return prospects.

Modest return on equity

An ROE under 7% suggests limited capital efficiency relative to peers. Over time, modest returns can impede the company's ability to attract investment, fund strategic initiatives internally, and deliver compelling shareholder returns without improving margins or growth.

Gandhar Oil Refinery (India) Limited Business Overview & Revenue Model

Company Description

Gandhar Oil Refinery (India) Limited manufactures white oils with focus on the consumer and healthcare end-industries in India. The company operates through Specialty Oil, Non-coking Coal and Logistics Support Services, and Others. The company offers white oils, waxes, and jellies for consumer, healthcare, plastics, chemical, textiles, and fragrance industries; lubricants, including automotive oils and industrial oils for automobile, and industrial machines and equipment; and process and insulating oils comprising transformer oils and rubber processing oils for transformer manufacturers, power generation and distribution, and tire and rubber product manufacturers. It is also involved in trading non-coking coal; and the provision of logistics support services, including cargo handling and transportation. In addition, the company operates consignment and del-credere agency; and trades in polymer products, gypsum, and PVC. It sells its products to India, the rest of Asia-Pacific, North America, South America, Africa, and Europe. The company was incorporated in 1992 and is based in Mumbai, India.

How the Company Makes Money

Gandhar Oil Refinery generates revenue primarily through the sale of its refined oil products and lubricants. The company’s revenue model is centered around the production and distribution of high-quality industrial and automotive lubricants, which account for a significant portion of its earnings. Key revenue streams include bulk sales to distributors, direct sales to manufacturers, and retail sales through various channels. Additionally, GANDHAR may engage in partnerships with other businesses in the automotive and industrial sectors, enhancing its market reach and sales potential. The company’s ability to innovate and expand its product offerings also contributes to its financial growth.

Gandhar Oil Refinery (India) Limited Financial Statement Overview

Summary

Gandhar Oil Refinery shows strong equity and manageable debt levels, but faces challenges in revenue growth and profitability margins, alongside cash flow management issues. The company must focus on enhancing revenue growth and improving cash conversion to strengthen its financial standing.

Income Statement

The company shows a mixed performance in the income statement. There is a decline in total revenue from the previous year, with a revenue growth rate of -4.95% from 2024 to 2025. Despite this, the company maintains a stable gross profit margin of 11.26% in 2025, indicating effective cost management. The EBIT margin is strong at 9.90%, although it has decreased compared to 2024. However, the net profit margin dropped significantly from 3.42% to 2.05%, pointing to higher costs or lower efficiency in profit conversion.

Balance Sheet

Gandhar Oil Refinery has a solid balance sheet with a debt-to-equity ratio of 0.25 in 2025, reflecting low financial leverage. The return on equity stands at 6.48%, showcasing reasonable profitability relative to equity. The equity ratio is robust at 63.08%, indicating a strong equity base in relation to total assets. However, there has been a slight increase in total liabilities, which is a point of concern but not significant enough to offset the overall strong equity position.

Cash Flow

The cash flow statement reveals challenges in cash management, as indicated by a negative free cash flow of -429.25 million in 2025. The operating cash flow to net income ratio is a low 0.18, which suggests inefficiencies in converting net income into cash. The free cash flow to net income ratio further highlights issues with a negative value, emphasizing the need for improved cash generation and cost control.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	38.09B	39.10B	41.13B	40.79B	33.87B	22.21B
Gross Profit	4.04B	4.40B	4.86B	5.16B	4.38B	2.85B
EBITDA	1.71B	1.89B	2.76B	3.41B	2.60B	2.40B
Net Income	760.42M	800.32M	1.41B	1.91B	1.68B	1.52B
Balance Sheet
Total Assets	0.00	19.59B	19.40B	16.13B	13.18B	10.98B
Cash, Cash Equivalents and Short-Term Investments	505.97M	1.52B	714.28M	468.46M	596.79M	1.21B
Total Debt	0.00	3.05B	2.71B	2.20B	1.91B	2.03B
Total Liabilities	-12.89B	6.70B	7.16B	8.53B	7.58B	7.22B
Stockholders Equity	12.89B	12.36B	11.72B	7.25B	5.41B	4.63B
Cash Flow
Free Cash Flow	0.00	-429.25M	-1.25B	322.71M	510.23M	1.08B
Operating Cash Flow	0.00	147.13M	-693.37M	879.27M	1.67B	1.18B
Investing Cash Flow	0.00	-480.98M	-659.19M	-721.87M	-1.16B	-223.56M
Financing Cash Flow	0.00	125.54M	1.60B	-285.73M	-41.28M	-910.86M

Gandhar Oil Refinery (India) Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 151.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GANDHAR, the sentiment is Positive. The current price of 151.85 is above the 20-day moving average (MA) of 149.86, above the 50-day MA of 139.66, and above the 200-day MA of 151.08, indicating a bullish trend. The MACD of 6.90 indicates Negative momentum. The RSI at 54.67 is Neutral, neither overbought nor oversold. The STOCH value of 41.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:GANDHAR.

Gandhar Oil Refinery (India) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GULFOILLUB	73 Outperform	₹56.57B	15.22	―	3.96%	11.94%	10.23%
KIRLOSENG	68 Neutral	₹168.64B	33.25	―	0.50%	11.85%	-3.66%
GANDHAR	67 Neutral	₹14.99B	16.07	―	0.34%	-1.05%	-11.57%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
MRPL	63 Neutral	₹243.87B	23.53	―	2.04%	-11.96%	14.31%
SOTL	58 Neutral	₹24.87B	18.06	―	1.06%	5.84%	-17.92%
INDOSOLAR	50 Neutral	₹18.15B	8.50	―	―	2412.32%	―

Gandhar Oil Refinery (India) Limited Corporate Events

Gandhar Oil Files SEBI Demat Compliance Certificate for Q3 FY2025

Gandhar Oil Refinery (India) Limited has submitted to the stock exchanges a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025, based on confirmation from its registrar and share transfer agent, MUFG Intime India Private Limited. The registrar has certified that all securities received for dematerialisation during the quarter were duly verified, accepted or rejected within prescribed timelines, that the corresponding physical certificates were mutilated and cancelled, and that the depositories were recorded as the registered owners for such securities, underscoring the company’s adherence to regulatory norms and the integrity of its share dematerialisation and listing processes.

Gandhar Oil Releases Q2 FY2025-26 Earnings Call Recording

Gandhar Oil Refinery (India) Limited has announced the availability of an audio recording of its earnings call for the quarter and half-year ending September 30, 2025. This call, conducted with analysts and institutional investors, provides insights into the company’s un-audited financial results, reflecting its operational performance and strategic direction for the fiscal year 2025-26.