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VMPL
New Delhi [India], October 28: Gandhar Oil Refinery (India) Ltd reported a substantial increase in consolidated net profit to 186 crore in the second quarter of FY27, marking a 368% rise from the previous year. The company achieved its highest-ever quarterly revenue of 1,847 crore, up 73% YoY. 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 companys 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. (ADVERTORIAL DISCLAIMER: The above press release has been provided by VMPL. ANI will not be responsible in any way for the content of the same.)
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