Gandhar Oil Refinery (India) Limited (NSE: GANDHAR) Q3 2026 Earnings Call dated Jan. 28, 2026
Corporate Participants:
Aslesh Parekh — Joint Managing Director
Indrajit Bhattacharyya — Chief Financial Officer
Analysts:
Ayushi Gupta — Analyst
Rohit Balakrishnan — Analyst
Ritesh Poladia — Analyst
Bhavesh Patel — Analyst
Raheel S — Analyst
Pratik Shah — Analyst
Vivek Gupta — Analyst
Rajesh Agarwal — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Gandhar oil Refinery India Limited Q3 and 9 months FY26 earnings conference call hosted by MUFG in Time Private Limited. As a reminder, all participants line will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star and then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Ayushi Gupta from MUFG in Time Pvt.
Ltd. Thank you. And over to you Ms. Gupta.
Ayushi Gupta — Analyst
Thank you. Good morning. I welcome you all to the Q3 and 9 months FY26 earning conference call of Kandar Oil Refinery India Limited to discuss this quarter’s business and financial performance. We have from the management, Mr. Ashlesh Parekh, Joint Managing Director and Mr. Indrajit Bhattacharya, CFO. Before we proceed with the call, I would like to mention that some of the statements made in today’s call may be forward looking and may involve risk and uncertainties. For more details kindly refer to the investor presentation and other filings that can be found on the company’s website and on the Stock Exchange.
Without further ado, I would like to hand over the call to the management for their opening remarks and then we can open the floor for Q and A. Thank you. And over to you sir.
Aslesh Parekh — Joint Managing Director
Thank you. First of all, good morning to everyone who is joining us on this call. I’m Ashlesh Parekh, Joint Managing Director of Gandhar Oil Refinery India limited. I’m joined today by our cfo. We appreciate your time and participation as we discuss our financial performance for the third quarter and the nine months ending 31 December 2025. I’ll begin by sharing our perspective on the operating environment and how our business has performed amidst a dynamic economic landscape. The global white oil market continues to exhibit steady structural driven growth. Based on the recent industry estimates, the market was valued at approximately $3.6 billion in 2025 and is expected to be around $4.66 billion by 2034, expecting a CAGR of about almost 3% over 2025 to 2034 period.
This growth is underpinned by the essential role of vitals in regulated and performance sensitive applications where consistency, safety and compliance remains very critical. Regionally, Asia Pacific remains the largest contributor to the global vital demand According to over 40% of the total consumption supported by industrial expansion, rising healthcare usages and growing personal care adoption. At the same time, developed market continues to demand higher quality grades due to tighter regulations. This dynamic align well with Gandha’s policy and operating strength and reinforce our position within the global Y12 value chain. During the third quarter FY26 Gandha recorded a consolidated revenue of 1,167 crores reflecting a healthy year on year improvement of 16% and quarter on quarter growth of 10%.
For the nine month period ended FY26, the total revenue stood at around 3,000 at 3,130 crores demonstrating stable performance despite the challenging macroeconomic environment, mark pricing, volatility and logistical disruptions, International market continues to play a very important role in our overall performance with overseas yield contributing to around 45% of the consort revenue during the nine month period. This sustained contribution from global market underscores the strength of our international customer base and reflects the steady progress we are making in expanding and deepening our global footprint across key geographies. With this, I would now like to hand over this call to our CFO Mr.
Indrajit Bhattacharya who will take you through the financials in detail. Thank you once again and over to you Indrajit.
Indrajit Bhattacharyya — Chief Financial Officer
Thank you Ashlesh Bhai and good afternoon to all participants. Let me take you through the financial highlights for the third quarter and nine months ended FY26. On a consolidated basis, revenue for Q3FY26 stood at 1167 crores reflecting a sequential increase over Q2FY26 and healthy year on year growth of 16% compared to Q3FY25. For the nine months ended FY26, consolidated revenue stood at Rupees 3130 crores supported by steady volumes and consistent demand arose across markets. EBITDA for Q3FY26 was 59 crores. While this represents a moderation compared to the strong performance in Q2 FY26, it remains significantly higher on a year on year basis for the nine month ended.
For the nine month period, EBITDA stood at 171 crores underscoring the resilience of our operational performance. Profit after tax for Q3FY26 was rupees 34 crores compared to rupees 40 crores in Q2FY26 and rupees 20 crores in Q3FY25. For the nine month ended FY26 Pat stood at Rs. 100 crores reflecting a strong improvement over the corresponding period last Year. Our segmental revenue mix for nine month FY26 remained well diversified with PHPO contributing 50% followed by lubricants at 26.8% and PIO at 9.5%. The manufacturing gross margin spread for Q3 FY26 stood at rupees 7271 per kil. Underscoring the strength of our manufacturing efficiency and disciplined operating execution.
We remain focused on a prudent cash flow management and operational efficiency as we navigate a volatile global environment. With this, I conclude the financial review and would now be happy to take your questions. Thank you.
Questions and Answers:
operator
Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Rohit from. I thought pms. Please go ahead.
Rohit Balakrishnan
Yeah, good morning, sir. Thank you for the opportunity. So just three questions. One was. So if I look at the history of our company over the last seven, eight years, our operating margins are forward between 2.3percent to about 7,8% and right now we have about 5% in this quarter. So just from. To understand, I understand our gross margins are pretty low. So I mean when you look at your business, what is the general operating margin that you would, that you would sort of say that this is a normal operating margin for our business. I know it can fluctuate a quarter here and there, but I’m just trying to understand on a normalized basis how do you see.
Aslesh Parekh
So by operating margins we’ll be talking about ebitda. We looking at EBITDA in excess of about five, five and a half percent annually. And we expect, we expect it to keep going up from now. I mean all other conditions, all of the circumstances remaining the same.
Rohit Balakrishnan
Okay. And so we, I mean there are some other, I mean some of your peers were also listed and I was trying to sort of compare. So we are more focused on the personal healthcare, personal care and healthcare segment. So any specific reason for that? I mean, and also if you can sort of comment on where the margins are better, where the sort of customers are more sticky. I mean there are other segments like transformer oil, is there. Paraffin, is there. So if you can maybe just explain what if you can just give an overview about these other segments and why we’ve Chosen on the performance personal care segment.
Aslesh Parekh
Sure. See, Gandhar Oil is not only focused on PHPO as a product matrix, but you know, we also are, you know, having other products in our portfolio, including the transformer oils, including the rubber processing oils, including the lubricants. The value share, you know, across the value chain. If we discuss, you know, around 50% of the total contribution is still from the PHPO sector, which is the personal care, healthcare, performance oil segment. The other businesses are also growing. PHPO as a business, I mean, obviously last. See if you say last one and a half to two years, obviously the cosmetics and the pharmaceutical industry has not been doing so well, you know, because of the, of the domestic consumption.
You know, we anticipate the consumption, you know, to move up. I mean, after discussion with our, you know, various FMCG customers, they are also anticipating the pickup in demand, you know, post GST rate cuts, you know, post liquid increasing liquidity, you know, in the system. So we are highly hopeful that, you know, the, the FMCG sector, you know, will turn around very soon. Having said that, you know, most sticky customers are in the PHPO business where, you know, the, the entry to a customer is more than, you know, like seven to eight years of time frame.
And you know, once you are there with the customer, we grow with the customer. That’s what we have even experienced. So and with, if you see the other businesses, it’s more of a price sensitive, price driven business. For example, say transformer oil, it’s purely a price driven business. It’s a tender business. You know, the margins are pretty low and you know, even the debtors, even the collection from, from this segment is pretty, pretty high compared to the PHPO segment. So the focus will still be on the PHP assembly. Having said that, we are also, you know, not only dependent on our domestic customers, we are also dependent on our overseas business which is also contributing to around 35, 40% of the total revenue of the company.
We are, we are, you know, on verge of, you know, adding some new products also to the pipeline. And we are very hopeful that our EBITDA margins in the near future would definitely go up.
Rohit Balakrishnan
Got it. So just on this question on the raw material, so how does it work, sir, in terms of. Because these are all crude oil derivatives. So base oil, base oil pricing, how does it work with your customers?
Aslesh Parekh
So see, base oil is the krm, you know, for any of our product mix, wherein, you know, we have some contracts with our suppliers, you know, for annual offtake of our base oil to service our Customers. So with suppliers we do have, you know, pricing pricing formulas in place with few of our select customers, you know, we do have price pass through mechanism, you know, wherein changes in the raw material price changes in the forex price are passed on to our customers only few of our spot customers, you know we have a pricing on every 15 days, every fortnight mechanism wherein you know, any change in the price you know is passed on to the customer on, on, on fortnite basis.
Having said that, we have more than 4,000 plus set of customers, you know, so the repeat auto is from this customer is more than 75, 80%.
Indrajit Bhattacharyya
Yeah. So with like sticky customers we have a history of about 70% of repeat customers for the last three to four years.
Rohit Balakrishnan
So you know, with few customers we have pricing contracts and with few customers we have like a 15 day price change that happens every quarter. We change the price.
Indrajit Bhattacharyya
Yeah.
Rohit Balakrishnan
So what share would be where we have these, these pricing contracts where we’ll have a formula and any change will sort of automatically get accommodated. What percentage of our revenue would be coming from these customers?
Indrajit Bhattacharyya
Around around 35% of the businesses on that price pass through mechanism, the residual on the around the other mechanism.
Rohit Balakrishnan
Got it. And since this last question before I fall back in the queue. So if I look at your ebitda, this water it can improve both sequentially and yoy as well, which you explained. But in your presentation you’ve given the per liter EBITDA also that has been broadly in the same range but the improvement in EBITDA has been much more. So what has led to that? I mean I see that other expenses are significantly reduced both sequentially and Y o y. So just if you can just explain what was that?
Aslesh Parekh
So obviously you know, expense is one part of it. You know, we’ve been able to you know, handle our finance cost effectively well year on year, quarter on quarter over and about that obviously you know, we’ve been in a position, you know to better sell our product and, and also efficient buying from our suppliers. So this has been a combination of various factors which has led to this. The main driver for any change in EBITDA or even PAT is the gross margin of our products because this represents practically 75 to 80% of the cross. So in 1% move here or there has an impact on the bottom lines. So that is why we, one of the main reasons is that we’ve done better on the gross margins.
Rohit Balakrishnan
Got it. And one thing was that so rising crude base oil price is beneficial for you or a falling base oil Price based oil pricing environment is beneficial to you on a rule of thumb basis whatever you’ve seen in the last seven, eight years.
Aslesh Parekh
Yeah, I mean it’s difficult for me to you know, give you a specific comment because we know we don’t play on the raw material price. Our focus is purely, you know, customer driven attitude wherein you know, we focus on customers, their requirement and we have a lean inventory of around 40, 45 days at the most. So and whatever buying is there, you know, I mean 80% of the product is pre sold, you know, so really, I mean unless in very exceptional situation, you know, when like crude goes up from $30 to $200 a barrel or vice versa, it may that otherwise, you know, if it is rainbound, it’s not a problem.
Rohit Balakrishnan
Got. Thank you. I’ll fall back if I have more questions. Thank you very much.
Aslesh Parekh
Thank you.
operator
Thank you. Participants who wish to ask a question may Press Star and 1. The next question is from the line of Mr. Ritesh Polaria from Giri Capital. Please go ahead.
Ritesh Poladia
Thanks a lot. So my question is your manufacturing gross margin from your own presentation it’s like 12 quarter low. So the improvement would not be from this gross margin spread, it would be from other expenses. So if you can elaborate on what has led to fall in the other expenses that would be very helpful for us.
Aslesh Parekh
Hello, just a minute, let me. So if you see quarter on quarter or if you are going to see year on year, the major improvement has happened on other expenses which is reduced from 52 crores in 311224 to 37 crores this year. Even finance cost has slightly improved employee cost. Employee cost is. No employee cost has gone up but the major improvement is on account of other expenses where the major component would be freight.
Ritesh Poladia
And where do you see freight now? Is it stable or again it’s inching up from this geopolitical situation.
Aslesh Parekh
Currently the trade rates are pretty stable and there is no such unexpected hike that we experienced, you know, previous quarters. And just to add, you know, our margin in quarter three, you know, in number term, you know, on a standalone basis, for example, you know, has improved from 18 crores in FY20, sorry, 17 crores in FY25 quarter three to 36.3 crores in FY20 this quarter three. So obviously there has been an increase in, in the overall performance of the company. It’s just not only you know, the expense reduction but obviously increasing on the performance as well.
Ritesh Poladia
Yeah, but your initial gross margin is about 12 quarter low. In fact if we see from IPO times it used to be hovering at 10,000, 10,000 rupees per kilo L. Now it’s about 7200. So is it because of the you know, range about oil prices or is there any other reason like increased competition or any anything you can elaborate on that?
Aslesh Parekh
Yeah, I mean if you see the pre IPO around IPO obviously these are all you know post Covid numbers and all that stuff, you know. But you know post that if you see last two years, you know, majority of chemicals, specialty chemicals, I mean across the industry there has been you know revision in the profitability quarter on quarter. I mean part of the same cycle. But we are trying, we tried our level best, you know to maneuver around and you know ensure that you know the margins of the companies are protected. And you know and in fact now we have started improving.
If you see last three quarters compared to previous year, our profitability has increased. Our gross margin also have substantially increased.
Ritesh Poladia
Also if you can guide us on current ruling white oil prices and where do you see it is going?
Aslesh Parekh
So can you repeat your question? You’re talking about?
Ritesh Poladia
If you can comment on the current ruling white oil prices during the month of January and where do you see it’s going.
Aslesh Parekh
January? So I mean it’s rainbows around the 70 to 70,000. 72,000. Sorry, around 78 to 80,000 rupees for metric tons.
Ritesh Poladia
Okay.
Aslesh Parekh
And we….
Ritesh Poladia
Yes sir, please go ahead.
Aslesh Parekh
So we anticipate the price to be you know, little bit going up. I mean based on the raw material increase and the forex increase.
Ritesh Poladia
Sure. Also if you can comment on your capex I think there is some delay from the whatever you envisage in the IPO or is it on time frame? If you can quickly take us through that.
Indrajit Bhattacharyya
Oh no delay in the capex.
Ritesh Poladia
I. I think in the ipo whatever their plans, is there any delay or all your capital expenditures all done.
Indrajit Bhattacharyya
All the money has been expended and the all the capex has been put into place. All the other objects have been met.
Ritesh Poladia
Okay. So 6 lakh liter is your now 6 lakh kilo liter is your capacity which will be there for some time now.
Indrajit Bhattacharyya
Right in the three plants? Yes.
Ritesh Poladia
Okay. And what will be the utilization for.
Indrajit Bhattacharyya
The Sharjah is currently around 70, 72%.
Ritesh Poladia
Sir. India has about almost optimum utilization but Sharjah is bit low. Is there any structure?
Indrajit Bhattacharyya
So Sharjah is basically a new plant. I mean it got operationalized sometime in 2017 or 2018. Okay. Now as as explained getting onboarded with these marquee names or the big players takes anything less. Nothing less than six to seven years. So that process is on second is even we at the raw material supplies for Sharjah are also in the process of being set up. So it will. It will take another two, two and a half years for charger to come online or close to the 90, 95% this thing till then this is the normal course of business.
The customer accreditation is that. I mean accreditation by the customers is happening and the raw material lines have been set up.
Ritesh Poladia
Sure sir. Also if you. Is there any other expansion plans you are currently going through or right now it status quo.
Aslesh Parekh
It’s difficult for us to comment but obviously as you’ve seen during the board meeting of the resolutions are now available publicly. You purchase some. We are planning to purchase some additional piece of land in both our facilities, you know for expansion. So maybe we’ll be you know in a position to give you more clarity in maybe a quarter to come as well with the amount of expansion planned and the quantity and the value of Capex plant.
Indrajit Bhattacharyya
And in the capex you will have the regular maintenance Capex debottling capex that will happen and some additional tanks have been put up. So I mean storage.
Aslesh Parekh
But the new new capex will definitely be you know coming by by maybe end of this year or next year at the most.
Ritesh Poladia
Sure. And final last question. What’s the status of this Wadhwan port project for you? There was like non binding mou but if you can give us some idea what’s happening over on that side.
Aslesh Parekh
The tenders have still not been floated you know by the government as yet. So we are persuading them and as soon as we have some information to pass on to our shareholder definitely will be doing so.
Ritesh Poladia
And what. What kind of investments would be that? Is it for the chemical storage side or is it from your own this existing operation side?
Aslesh Parekh
It will be a combination of both.
Ritesh Poladia
Okay. Yeah. That’s all from my side. Thank you very much sir.
operator
Thank you. The next question is from the line of Mr. Bhavesh Patel from Patel Investments. Please go ahead.
Bhavesh Patel
Hi. Thanks for the opportunity and congratulations on great set of numbers. The turnaround is visible and hoping for better numbers going ahead. Also felt great to get the dividend of 75 paisa. Appreciate especially the comment in terms of continuity of quarterly conference call based on the input in last call. So thank you Aslesh bhai on that. And I like the details provided by both Aslesh bhai as well as Indrajit I have following couple of questions. Number one, our company reported record breaking revenue this quarter. So congratulations on that. And yet the manufacturing gross margin spread which is INR per kiloliter contracted from 8662 to 7271.
Can you please explain this and do we expect this situation to be continued?
Aslesh Parekh
So this is basically an impact of the raw material prices also and the. The fact that what Ashtesh Bhai mentioned that FMCG and Pharma with our regular customers we have not been able to get the prices which we are getting earlier. So these are the main reasons why the gross margins has been slightly impacted going forward. Yes we. The whole of this year we have been getting in excess of 7. 7.5 rupees per litre. Going forward we would like it to be close to 8. But it should stay another 7. 7.8. 7.9 rupees per liter.
Bhavesh Patel
All right. Thank you Indrajit. On that the next question is the board the meeting came out right in terms of minutes it said approved the purchase of 453 decimals of land adjacent to your current factory. Now I really don’t understand what is this 453 decimals. Is it in terms of like you know acres or square meters. Where have you purchased this land? At Taluja, Silvasa. I mean which place?
Aslesh Parekh
So these. These are. These are plants being purchased at both the units at Silvasa and Talosha adjacent to our existing factory. Now as regards the decimals We’ll. We’ll. We’ll get back to you during the course of this call itself. What does decimal mean? I don’t know if it’s Voltas or 0.4853 acres. I’ll just get back to you on that.
Bhavesh Patel
Yes please. That would be appreciated. So we are saying we are buying at both the lands, both the plants in terms of adjacent land for expansion. Now I know Slesh Bhai mentioned about strategic plans for the timeline as well as amount for the further capacity addition. But my question is without the upcoming capacity expansion with the land that we purchase are we still continuing with our increasing volume by 10 15% over next 23 years on a yearly basis.
Aslesh Parekh
Next one and a half to two years. We’ll definitely be increasing our volumes quarter on quarter even without the existing lag.
Bhavesh Patel
Perfect. Perfect. Thank you. The next question, final question in fact and I really appreciate the way by you and as well as promoter picked up at around all time low price of 120 onwards all the way up to 155 plus. Now are you still looking at increasing your stake or it was just to support and give confidence to all of us.
Aslesh Parekh
No, no, no. This is, this is skin in the game, sir. The promoter sees the potential of the company to take it further.
Bhavesh Patel
Perfect. Perfect. No, really appreciate and that’s, that’s a great thing giving us confidence to be in together for longer period. So appreciate all the very best and thank you once again Ashlesh bhai as well as Indrajit.
Aslesh Parekh
Thank you.
Indrajit Bhattacharyya
Thank you so much.
operator
Thank you. The next question is from the line of Mr. Raheel s from Sapphire Capital. Please go ahead.
Raheel S
Hi sir, good morning. Can you hear me?
Aslesh Parekh
Yeah, yeah.
Raheel S
So firstly this, the other segments in the lubricants and pio. What, what is the outlook there? I mean what is the current market scenario where you said transformer oil is not doing as well as expected in the markets. Any reason for that?
Aslesh Parekh
I never said transformer is not doing well in the market. I told there are delinquencies in debtor collection in terms of the transformer basis because of the power sector it is associated with. So. Okay, so. And, and for the lubricant, obviously, you know, it is growing at a stable pace. I mean with the advent of ev, obviously the automotive lubricant demand, you know, obviously would come down over the years. But for at least for initial lubricant, obviously the demand keep on rising with increasing.
Indrajit Bhattacharyya
Just to clarify what Ashlesh bhai meant is that transformer oils is a growing segment with the increase in electrification, with the electricity around. It is. It is something which blocks a lot of working capital because of its.
Raheel S
Okay sir. And you said the other expenses were you know, much lower this quarter, which is a good sign. But the major component which led to that was the changes in freight rate. Correct. Which you say are pretty stable as of now. But let’s say they turn volatile given the geopolitical conditions. So how do you still expect to, you know, maintain or improve your cross margin?
Aslesh Parekh
See post this issue. You know, we have been, you know, in a position to pass on the increase in freight rates to our customers. And currently we are doing lots of shipments on fob. So freight is being arranged by the customers. You know, this has helped us in, you know, navigating the freight, sudden freight hikes, if any going forward.
Raheel S
You have that sort of arrangement with all your customers.
Aslesh Parekh
Majority of the customers. I cannot say all the customers, but majority of them.
Raheel S
Okay. So by and large you will be able to, you know, keep your gross margins at the range of double digit at least. Can we expect that from the next quarter itself? From quarter four?
Aslesh Parekh
We are very, we are very optimistic about it.
Raheel S
Okay, and finally sir, if you can guide on revenue front any specific guidance you have or what do you expect like a growth CAGR for the next two, three years expect to achieve.
Aslesh Parekh
Our, our annual budgeting for the next year is on the way in February. So hopefully maybe next call it will, will be going to give you much more clarity on, you know, the guidance number for the year coming.
Raheel S
Okay sir, thank you.
operator
Thank you. The next question is from the line of Mr. Pratik Shah from Investing Alpha. Please go ahead.
Pratik Shah
Hello? Yeah, hi. Good morning sir. Thank you for the opportunity. So my first question is the PHPO continues to be the largest contributor to the finished goods revenue. So how should we think about the growth trajectory at this segment, you know, over the medium terms?
Aslesh Parekh
The FMCG industry as you are aware, I mean PHPO is a combination. We are dependent on our customers, you know, to grow. I mean that’s a very basic line, but obviously the FMCG industry obviously has not been growing so well over last two years. But obviously with, with the liquidity in the system. Hello, can you hear me?
Pratik Shah
Yes, we can.
Aslesh Parekh
Okay. Yeah. So with, with the GST reforms that has been there in the country, you know, by the honorable prime minister, we are very hopeful that FMCG and the consumption demand, you know, specifically in the rural areas and the urban areas will start coming up, you know, from this quarter. We are very hopeful and with the discussions that we have with our customers, you know, they are also pretty optimistic that things will turn around earlier than, earlier than expected. So we are very hopeful that the PHP and the cosmetic industry will, you know, continue growing at the way in the, in the near future, in at least, you know, a high single digit plus.
We are also dependent on our exports for our PHPO business as well. So not only on domestic front but also export front. We are anticipating to, you know, increase our, our, our revenue from our overseas customers.
Pratik Shah
Okay, so are we seeing a higher growth, you know, growth from existing customer itself or any incremental contribution from newer accounts or any specific geographies that we are targeting?
Aslesh Parekh
See, we, it’s a combination of both the things. I mean, obviously our existing customers, you know, are showing some good growth. Plus we are, you know, penetrating with our existing customers. So with some of our multinational companies, you know, currently we’re only supplying to India market now we are supplying, you know, this multinational customers to our overseas market as well. So that’s why we are penetrating with this customer then, you know, growing internally.
Pratik Shah
Okay, so one last question. So exports now form a meaningful share of overall revenue. So which regions are you currently driving this growth?
Pratik Shah
What was the question? Miniscule returns are about 45%. Overseas sales is about 45% of total turnover. Right. So I’m just asking like which regions are currently driving this growth?
Aslesh Parekh
Obviously it is Asia Pacific and some, some, some specific countries in Africa which are driving this growth.
Pratik Shah
Okay, and should we expect the export mix to remain broadly stable or do you see certain markets getting faster next couple of years?
Aslesh Parekh
See, obviously with the announcement of deal, you know, coming forward with, with the US Obviously we may anticipate U. S would, you know, accelerate in terms of growth. Whether with the EU trade is just done. We are interested, we are still working on the numbers and the benefit that our customers will have in the European region. Then, you know, I mean, the landscape would definitely change. It is difficult for me to give you a number now, but we are anticipating the landscape to be changed very soon.
Pratik Shah
Okay, thank you sir. Thank you for the opportunity.
operator
Thank you. The next question is from the line of Mr. Vivek Gupta from Star Investments. Please go ahead.
Vivek Gupta
Hello. Am I audible? Yeah, yeah. Hi sir. So the working capital levels appears elevated in recent periods. Is this largely driven by business growth and inventory planning?
Aslesh Parekh
There has been a general increase about 3, 4 days in inventory and about 4, 5 days in receivables. And but in the same breath, what was happening earlier was my creditors levels was coming down this year. We’ve been able to keep it at normal. So if I take all that, my cash conversion cycle this quarter is slightly better than the previous quarter and we expect it to be around the same levels as this quarter.
Vivek Gupta
Okay, so like should we expect working capital intensity to moderate as volumes stabilize?
Aslesh Parekh
No. So just to answer your question specifically, we are not in that game where we stock inventories among the peers we hire the least amount of inventories. Hence there is no impact of inventory gain or inventory loss. We are not very high on the transformer oil business. So my debtors will still stay within that 65, 70 days. So I don’t see any increase in the working capital with the increase in turnover. It will stay around the same days.
Vivek Gupta
Okay. Okay. So they like you, cater to both the large FMCG players and broad customer base. So like how do you, you know, balance scale customers versus the diversification?
Aslesh Parekh
Obviously there are channels in place, you know, to take care of our small customers as well and large size Customers as well. Obviously, you know, with international clients the buying is more, you know, the buying is more specific. You know, there are budgeting in place, you know, there are quarterly forecasting in place. You know, which helps us in planning better this way. You know, it’s easier for us, you know to penetrate with these customers and grow with the customers.
Vivek Gupta
Okay, so like just a follow up on this. Like this. Onboarding large customers typically translates into multi product opportunities over time.
Aslesh Parekh
Yes, it does.
Vivek Gupta
Okay. Okay. Okay sir. Thank you.
operator
Thank you. The next question is from the line of Mr. Rajesh Agrawal from Money or. Please go ahead.
Rajesh Agarwal
My question is is the business sequentially we have not done so well. Quarterly we have done well. Is the business seasonal in nature? That is the first question.
Aslesh Parekh
There’s a bit of cyclical impact, little. Bit of cyclical impact. I mean if you see our revenue quarter on quarter it is primarily, you know, range bound. I mean there’s not a huge volatility like 500 crores in one quarter and thousand crores in another quarter. It’s not like that. It’s still rage bound. But yes, I mean post monsoons, I mean during monsoon the business is little bit low. But I mean quarter three and quarter four are better performing quarters for us historically. So we are looking for.
Rajesh Agarwal
And the next question is the demand from FMCG for the cream products like white oil or personal products. That is a good demand level because I was reading a report by Narration Key. Are our products using for hair cream and cosmetics?
Aslesh Parekh
So what is your question?
Rajesh Agarwal
My question is is our product being used for hair cream main products and cosmetic products?
Aslesh Parekh
The application of our white oils is across various industries for cosmetic industry. Yes, it’s used in of creams, lotions and stuff like that in pharmaceutical as well. It’s used in manufacturing of your creams, ointments and so on. And also in you know like various. Like for example say various manufacturers are there like the Tiger or Vic paper and so on. This is an application for product.
Rajesh Agarwal
Okay. So how is the demand holding there? Are you seeing demand, good demand from there?
Aslesh Parekh
I mean it’s not a healthy demand but demand is at least better than last year. Last year. And going forward you feel the demand will come from there. We are anticipating demand update happening as just highlighted in our previous discussion.
Rajesh Agarwal
Okay, thank you sir.
operator
Thank you. A reminder to all the participants who wish to ask a question. You may press start and one at this time. The next question is from the line of Mr. Rohit from. I thought PMS. Please go ahead.
Rohit Balakrishnan
Just wanted to Understand what is the peak revenue that we can do from our current capacity of 6 lakhs kilometers revenue.
Aslesh Parekh
Yeah, I’ll tell them. So, so 6 lakh kilo litres there is another 30% of 2 lakh 25,000 KL which can be increased when the Sharjah plant comes onto stream and becomes close to 100%. So that is the highest we can do right now with the existing installed capacity. So that’s about another 60,000 KL.
Rohit Balakrishnan
So you’re saying 6 lakh 60,000 is what you can do at peak. I mean if you can use. No, not 6 lakh 60.
Aslesh Parekh
No, no, no, no. 5. 5 lakhs. 5 lakhs is that 6 lakhs is the total installed capacity. So another. Another 30% increase. Another 30% or 20. So 60,000 will come, will come up. By. The next two years or so.
Rohit Balakrishnan
And in terms of revenue, sir, in terms of revenue should be. How should we look at it? I know prices are fluctuating but just generally as a maybe at current prices what can we do as a peak revenue?
Aslesh Parekh
7,800 rupees per liter. 7,800 rupees or 7,500 rupees per kiloliter.
Rohit Balakrishnan
Okay, so. Okay, so got it. And hence maybe you’re looking at expanding the capacity and on this exports. So while exports are a big contributor in terms of revenue. But I also wanted to just check like over the last three, four years we’ve been rangebound around that 141 crores. Of course this year we’ll probably hit around 170, 180 crores. But in exports like what is the. I mean what, what do you think can be the potential? Can this be like 50, 70% of revenues, let’s say three, four years out or it will be more steady and the share of revenues will be around these levels only.
Aslesh Parekh
So we probably exports could grow up by another 5, 10%. It will not be 60, 70% of total revenues. So it could be 50, 55%. That’s, that’s what we see in the next. In the short, medium term.
Rohit Balakrishnan
And are they better margins and better? I mean return on capital wise? They are better or they are similar.
Aslesh Parekh
Slightly. Slightly better Exports gets a slightly better Margins
Rohit Balakrishnan
And working capital also is similar in terms of your receivables etc.
Aslesh Parekh
Yeah, yeah, yeah. Receivables is around the 60 odd days. But exports, exports in working capital is slightly better because we work on a lot of advance and against lcs. So debtors is slightly better managed over there.
Rohit Balakrishnan
Okay, and the last question, I mean, in terms of your product confining, I mean, is there anything that you’re doing to sort of improve your profile or differentiate, let’s say maybe only very specific formulations for your. For a specific customer or a specific suite of products? Is there something that you can, you’re doing there or you, you may want to talk about something on that line or.
Aslesh Parekh
Yeah, I mean, definitely. We are, you know, in close interaction with a few of our multinational customers where we are, we are formulating a specific product for them. But these are still under R and D trials because of the NDAs. It’s difficult for me to, you know, give more further information. But yes, there are, there are, there are, you know, some new products which are being worked with the customers.
Rohit Balakrishnan
Okay. And at this point of time, what portion of revenue would be such products. Or.
Aslesh Parekh
So, I mean, these are the new products which are under development. Right. So there will be no such revenue generated as of now from these products. Okay.
Rohit Balakrishnan
So. Okay, what I want, what I wanted to understand was that, I mean, typically if the products are differentiated or if there is a very lot of R D that we have done with the customer and we are closely sort of tied in with them, then it will be. Then you’ll be probably the sole supplier or one of the sole suppliers or one of the key suppliers for them. Right now, do we have such revenue in the system, like such?
Aslesh Parekh
There are a few products, yes, that we are sole suppliers, you know, to some certain specific customers. The revenue, I mean, in the overall queue of things would be far minimum. But I mean, if you ask on the SMCG point of view, obviously, you know, with some specific product would be in the range of 7 to 8% of the total revenue on the PHP overall. PHP of products.
Rohit Balakrishnan
Got it. Okay. Thank you very much. This is all I had. Thank you.
operator
Thank you, ladies and gentlemen. That was the last question. I would now like to hand the conference over to Ms. Ayushi Gupta for closing comments.
Ayushi Gupta
I would like to thank the management for taking the time out for the conference call today and also thank all the participants. If you have any queries, please feel free to contact us. We are managing Intime Private Limited Investor Relation Advisors for Gandhar Oil Refinery India Limited. Thank you so much.
operator
On behalf of Gandhar Oil Refinery India Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.