Gulf Oil Lubricants India Limited (NSE: GULFOILLUB) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Ravi Chawla — Managing Director & Chief Executive Officer
Manish Kumar Gangwal — Chief Financial Officer
Analysts:
Probal Sen — Analyst
Sabri Hazarika — Analyst
Dhaval Popat — Analyst
Nitin Tiwari — Analyst
Mahesh Madhusuddan — Analyst
Kirtan Mehta — Analyst
Bharat Gulati — Analyst
Arya Patel — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Gulf Oil Lubricants India Ltd. Q3FY26 earnings conference call hosted by ICICI Securities Ltd. As a reminder, all participant lines 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 then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Prabhal Sen from ICICI Securities Ltd. Thank you. And over to you sir.
Probal Sen — Analyst
Thank you operator. Thank you everyone for making the time to attend this post. Q3FY26 result call of Gulf Oil Lubricants. We have with us members of the senior management headed by Mr. Ravi Chawla, the Managing Director and CEO and Mr. Manish Gangwal the whole time Director CFO of the company. We will the format will be as always, management will give their opening remarks and outlook on the company and then we will move into an interactive Q and A now. So without further ado, let me hand it over to the management. Over to you sir.
Ravi Chawla — Managing Director & Chief Executive Officer
Thank you. Good day. Good afternoon everybody. Thank you for joining us on the Q3 call. I’m very delighted to inform you that this quarter has been an all time high in terms of quarterly volumes at 41,500 kilo which is a record volume for Gulf Oil. It’s been a very strong one for us. We’ve also notched up the highest quarterly revenue and EBITDA which is a good sign in terms of the momentum that we had gathered earlier in the year. We have seen demand and sales really picking up in the second half of the quarter post the prolonged monsoons and festivities.
So that was also aided by the GST and other things that happened clearly for us. The 2x market growth rate has been maintained overall where our lubricants volume have grown by 8% in this quarter outperforming the industry again by 2x. As we have been focusing on that also We’ve seen this 2x growth has been supported by double digit growth in many segments. This time in B2C we have seen the key segments of passenger car motor oil which we’ve been highlighting is an area of higher growth for us. We have seen a good double digit mid double digit growth.
Agriculture which has done well early in the year continued to do that and we also see prospects of that continuing with hopefully good monsoon and it’s also been the B2B segments of industrial infrastructure which have seen double digit growth. So all around I think this has been a quarter where the 41500 happened due to this. And what has also been a very strong performer has been our OEM franchisee workshop which has continued to grow. But this quarter again they came in with high double digit growth, strong momentum from a number of our OEM partnerships and it was a broad based growth in OEM franchisee workshops where I think Gulf Oil is clearly the market leader.
In terms of the tie ups we have for the franchisee workshops it’s been the PCMO again registering high double digit growth. And in OEM franchisee also the AGRI segment where we have partners like Mahindra and Swaraj, we had recorded double digit increase. Some of our. As you know some of these OEM types are also doing very well in terms of their own stature and market share. So that appears well for us. As mentioned the GST rationalization for IC vehicles has improved and this is really providing a renewed sense of optimism amongst the consumers. Also creating additional growth opportunities.
While EV also grows which is an area of our entry and growth, we’ve continued to focus on rural and agri markets which are remaining key drivers for sustaining our growth trajectory and increasing market share. To mention a few other highlights from the nine monthly basis. We just like to share obviously that with the double digit 2x growth in quarter our overall nine months is growing 9.3% in the lubricant area which is again a very good sign in terms of our overall growth trajectory and volume has been 1:23,000kg for nine months and of course we are progressing very well towards the strategic objectives where the growth is really delivering that AdBlue also has grown for us by close to 8% at 1 11,000 kilo volume 9 months and our revenue also has grown.
We recorded a revenue of 2,951 crores which is good double digit growth of 11.8% for revenue which shows that it is above our volume growth. So definitely improved segment and market and product mix has happened. In addition our EV subsidy Tarex is charging ahead in a way obviously acquiring new marquee customers. We have customers like Mahindra and MG Winfast and a number of other bus OEMs delivering strong financial performance. Also in this the business is on track to close the year in line with whatever we have planned and obviously looking at the environment around and remains well aligned to our long term strategy to scale and strengthen the EV segment as a core pillar.
Tyrex actually closed quarter three with a top line growth of 83%. And if you take the nine month period it’s close to 80%, 78% to be exact in terms of revenue growth in the nine month period. That’s all for me. I’d like to now ask Manish to take you through some of the other highlights and obviously the financial figures also. Thank you Manish.
Manish Kumar Gangwal — Chief Financial Officer
Thank you Ravi. Good evening everyone. So as Ravi mentioned, it’s been a very good quarter for us from all perspectives. All time high top line volume and ebitda. And what is also very good sign in spite of cost pressures coming mainly from rupee depreciation during the quarter we have been able to expand our EBITDA margins sequentially by nearly 67 basis points because of the cost management and timely selective price actions we have taken. So overall we are back to 13% plus EBITDA margin this quarter. Last two quarters before these were slightly lower side. So that’s a good sign.
And overall we continue to remain net debt free. And also as we have announced, the board has been happy to increase the dividend, interim dividend to 21 rupees per share. That’s 1,050% on the face value of rupees 2. So overall, yes, the board has shown confidence in the way business is tracking. And with that broad highlights. Yeah, one thing I also want to add is that the quarter last year December quarter had a one time income of some sale of one surplus land near our Silvasa plant. So that is 12 crore rupees was sitting in the base.
And as we all know, every company has announced there was a one time effect of new labor code provisioning which has been there in the quarter. So if we exclude these one times the PAD growth also is in line with EBITDA. Slightly better than that in fact to nearly 7.4%. So overall very good quarter from all perspective. And we would be happy to take questions. Thank you.
Questions and Answers:
operator
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 their 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’ll wait for a moment while the question queue assembles a reminder. Whoever wishes to ask a question may press star and one at this time. Our first question comes from the line of Sabri Hazarika from MK Global. Please go ahead.
Sabri Hazarika
Yeah, good afternoon and congratulations on good numbers. So I have two questions. First is can you mention segmentally? Most of the segments grew double digit but overall our lubricant sales grew by around 8%. So is it the DEO and factory sale where there is a slowdown and can you give some more color on how it is coming currently doing and what is the outlook?
Manish Kumar Gangwal
Yeah, I think you picked up right. Basically it’s some of our other segments exports have been slightly slower and marine segment has been slightly slower. But when it comes to other domestic segments, all have done very well. CBO is of course single digit but many of them are at good double digit growth.
Sabri Hazarika
Okay, when do you see these segments also picking up?
Manish Kumar Gangwal
You’re talking of commercial vehicle segment.
Sabri Hazarika
Yeah
Manish Kumar Gangwal
it’s been very, it’s been growing In fact, factory field, as we all know, the commercial vehicle cycle has really turned around from November onwards. So we are really looking at a very, very robust CV cycle revival on the back of our strong OEM relationships in the CV segment which is with multiple OEM partners. And based on that we believe that the coming quarters and years will be very strong from CV point of view.
Ravi Chawla
Yeah. So just to add Sabri to what Manish is mentioning, CVO segment is a very high, it’s high market share for us also and we’ve been growing ahead of the industry in that also. But this normally grows single digit in terms of low single digit. So I think also there is a lot of long drain oils and other better performance oils which is part of our strength also. So both these things I think obviously CBO is a large segment. As you know, diesel engine oil is more than 40% and so that’s where that is there.
And exports also depends on how the various products are there. So those go through also cyclical, but it has always been growing for us. So these are some of the segments which have impacted the growth. Otherwise you write double digit growth in most of the segments and these two, three segments this, this quarter has been obviously single digit.
Sabri Hazarika
Yeah, right. Second question is on this labor code. So this 226 million. So this is like an exceptional. But is there a recurring impact to it and is it there in the employ right now?
Manish Kumar Gangwal
The recurring impact will not be very significant as we understand from the current, you know, because it’s a company which was, you know, many of the employees are more than 15, 20 years with the company. And we started our plant in Silvasa way back in 1993. So you know the longevity in Gulf is a key thing we are proud of. That leads to accumulated provisioning. But recurring impact there will Be marginal impact but not significant.
Sabri Hazarika
Right. And do you retreat your guidance of 89% lubricant volume growth and 12 to 14% EBITDA margin?
Manish Kumar Gangwal
I think our guidance is 2 to 3 as the volume growth which continues and we are seeing market is also picking up. So that continues. And considering that there is a rupee headwind which continues in January and you know the quarter ending December also we have to wait for rupee to stabilize and we will currently be only talking about 12 to 14% margin band which we have been always guiding about. We have to, you know, take certain pricing actions when and for margin management whenever needed. But overall, yes, 12 to 14% guidance for now and eventually we have been highlighting in the past that we have to move to the next trajectory of 14 to 16% over medium to over a medium term.
Sabri Hazarika
Right. So no price pricing actions have been taken recently.
Ravi Chawla
Yeah. So as I mentioned in some of my interactions we are seeing that the pricing actions are happening. We have also taken a few and that’s a good sign. So I think that we are hoping that we get that obviously some of our OEM customers and all. There’s a quarterly PVC so that takes a bit of time. But it’s on the positive that pricing actions are coming.
Sabri Hazarika
Okay, thank you so much.
operator
Thank you. Ladies and gentlemen, if you wish to ask a question you may press star and one at this time. Our next question comes from the line of Dhawal Popat from Choice International Limited. Please go ahead.
Dhaval Popat
Yeah, congratulations on the good set of numbers. But my question was primarily to do with the plant expansion both in Silvasa and Chennai. So last I recall that the machinery for the Chennai plant was on the way or maybe already there. So my point was more on where can we start to see incrementally more volumes basically from both these plants. And the second question I had was more on the cash that the company has on the pips. So what did it is targeting certain MMAs in this and more into the battery side of things or in the EV space particular leaks.
So if there is any development or any particular area where companies are looking out for acquisitions, that’s remind.
Manish Kumar Gangwal
So Mr. Dhawal, basically you know we have announced a 55 crore rupees of capex for expansion of our Silvasa and Chennai capital capacities. The work is in progress. It’s going to take maybe you know in Chennai it will be coming sooner but in quarter one of next financial year and Silvasa will take, you know it will be ready by the end of third quarter Having said that, we always have maintained that we can produce based on the market demand by running third shift, extra shift in the current plant current setup with some incremental balancing equipment.
So there is no challenge for fulfilling the current demand and there’s no direct correlation between the capacity and market demand and volume growth. We are preparing ourselves for future because we are growing 2 to 3 as the industry and we need to have capacity sufficient capacity going forward. So the entire capex is towards that. But all our current demands and the future growth for the next six months to one year can be fulfilled from the current setup itself. It’s not a challenge. Coming to the second question of cash and we keep looking at acquisition opportunities.
We have been vocal about it that we want to do more acquisitions in the EV space also in the lubricant space itself, some of the niche products including in industrials, other categories. So we are as we speak we keep evaluating many proposals and obviously it has to have a right fit and synergy. So as and when something is crystallized we will definitely make some announcements.
Dhaval Popat
If I can just follow up one thing. So currently in the annual report it is mentioned about 12 OEMs are already approved by them. So if there is any further more any other OEMs on boarded that is one. And second I also wanted to ask about 1 in 4 buses I understand were being caused by the charges that recorded by. So some more penetration of any any further color that you can provide on these if there is some development around these areas.
Ravi Chawla
So Dhaval you. I don’t. Just to clarify the first question you’re. Asking is on 12 OEMs charges.
Dhaval Popat
For the TEREX charges.
Ravi Chawla
So Tyrex is working with a number of bus OEMs which we have I think major part of they cover about 60, 70% of the bus OEMs. Also some of the bus OEMs operate through ChargePoint, you know, companies etc. So we are catering to that. So most of the market we are covering we have got our chargers accepted by them and we have named a few like we’ve got Electra, we have got switch some of those names, you know and we are working with them. The other is we are working also for the AC chargers with MG and Windfast and we also work with Mahindra for the charging.
So that is there. And regarding buses, as you know the EV buses is an area where the penetration of EV is going up because of also the emission requirements of various cities. There we are our direct, you know chargers are there and you know I would Say right now we, between four to every four to three buses, we would have our charger going into the Indian market. But this is a very early stage. So this market will grow and we’ll obviously be expecting that we’re able to grow in that in terms of our DC charging business.
Dhaval Popat
Thank you. But just if I got it correctly, you are supplying those AC charges to Mahindra as well now, is that correct?
Ravi Chawla
No, we are supplying, we are supplying the AC charges to MG and Winfast and Mahindra is putting up, is putting up the DC charges which are there, which go into there. They also have the setting up in their dealerships and also in there some of the, you know, outside charging facilities which Mahindra is embarked upon.
Dhaval Popat
Okay, thank you. Thank you so much.
Ravi Chawla
Thank you so much.
operator
Thank you. Our next question comes from the line of Nitin Tiwari from Philip Capital India limited. Please go ahead.
Nitin Tiwari
Hi sir, good evening. Thanks for the opportunity. So I, I assume that you’ve basically indicated your thoughts on this question in the past as well, but I’m just reiterating this question. So there’s a lot of basically noise around data centers in the country. In fact, the recent budget also indicated a tax holiday and there are a number of announcements which are coming in from hyperscalers and other companies as well for setting up data centers. So are you like, you know, reassessing this segment from a demand perspective and if you can give us a fresh perspective about what you’re thinking and in terms of demand as well as product development for catering to this particular segment and who would actually be your like, you know, peers or competitors also when, when it, when it comes to data center cooling.
Ravi Chawla
Yeah. So as we mentioned see data center cooling, currently there’s lot of air cooled. Now it is moving to liquid cool because of the speed and requirement. Now a lot of the data centers coming up, they have to obviously invest in this liquid cool infrastructure. So we have got two products which we have made with our global team in terms of technology. These products, we will be testing them and validating them in terms of specifications. So we will have to work with the companies setting up the data centers, including the technology guys putting up the hardware and other things.
And overall these products are there and as we mentioned many times the market is globally also. These are coming up in India also. But the conversion to, you know, the liquid cooling which is there is going to happen and it’s going to be a small volume but we still see it growing and this. So we are getting ourselves ready to get Our product validated and working, working with some of these hardware. And there are also some organizations which do the testing. So there are certain testing procedures which we need to follow. So the product is already now.
So it is the next stage of testing and validation.
Nitin Tiwari
Sure. So that’s why like, you know, I had asked this question because I remember in the past as well, you had indicated that this segment per se is expected to be a very small one. But the reason I asked for a reassess perspective is that today, I mean like, you know, there’s a lot of stress on high compute and like you know, denser sort of data centers as such, which could primarily be liquid cool. So that’s why I thought, let me have your perspective. If there’s any change in terms of assessment of demand assets. And, and would your.
The second part of the question was like, you know, would your peers and competition in this space be only lubricant manufacturers or would it also be other chemical companies? If you can just like, you know, help us understand that as well.
Ravi Chawla
Yeah. So there are products available, there are others also specialized companies globally, whatever knowledge we have there making the product. But definitely the lubricant companies are also well positioned to test this because it is a similar product made from the similar raw materials base oil and synthetic grade. So both the products are materials we use also. But there are some other players who would have this product and the key would be to see how this is getting, you know, how they’re being set up and then have products ready which can cater to it. And you’re right, the need for computing is becoming higher.
So we hope we are monitoring the trend and we’d be ready with the products to be able to position ourselves.
Nitin Tiwari
Right. And so my second question was with respect to your EBITDA margin. So you’ve indicated a broad percentage range. But I was wondering if you can help us understand basically the contribution at EBITDA level from a rupees per liter perspective as well. What is the kind of number if we have like, you know, in terms of our targeted number over there?
Manish Kumar Gangwal
Usually we we given guidance on percentage basis only. While we have been very clearly saying that 12 to 14% band we want to maintain and while growing volumes. So that is our objective which we have been actually delivering. In fact in last many years and quarters that we have been growing 2 to 3x the volume keeping our margin band intact in the band of 12 to 14% per liter is something which is. Which is being internally tracked because that’s important from passing on the cost increases etc. In different segments and with different OEMs as well.
But as a guidance we keep giving the guidance of percentage 12 to 14% band. Also in good quarters it should be towards the upper end of this band. And in some of the quarters where we have seen in June quarter and September quarter it was towards the lower end. But as we see we have things have been picking up.67 basis point increase in the EBITDA margins sequentially is a good indication in spite of rupee I mentioned in my opening remarks. Overall we see that market is also looking at more pricing actions which is going to be helpful because rupee continues to behave very erratic.
And the good sign is that crude has been stable. So that’s a positive because it is in that band of 65, $70. And as long as it remains in this band our input cost should be stable. So that that’s what we are looking at.
Nitin Tiwari
Understood, sir. Thanks so much for answering my question, sir. I’ll get back in the queue.
Manish Kumar Gangwal
Thank you.
operator
Thank you. Our next question comes from the line of Mahesh Madhusuddan from Kantilal Chavanlal Securities Private Limited. Please go ahead.
Mahesh Madhusuddan
Good afternoon, sir. Thanks for having me. First of all, congratulations for good result and healthy dividend. Sir, I’d like to ask you one. Question about price hike. If any specific strategy followed for price Hike or any other ideology.
Manish Kumar Gangwal
See price hike and margin management is a, you know, perpetual exercise which the company has to do. It depends on various factors. Our input cost competitive scenario in the market segment wise demand and supply conditions. So there are many factors which play in taking pricing decisions. There is a proper obviously monitoring and controls to ensure that the price management, you know, process is robust. And we are seeing that. We have been in spite of such pressures we have been able to actually sequentially increase our gross margins and EBITDA margin overall.
Any margin specific number specific you can give. We have mentioned in this call in the that we have a guidance of 12 to 14% EBITDA margin.
Mahesh Madhusuddan
Okay, thank you.
operator
Thank you. Our next question comes from the line of Kirtan Mehta from Baroda BNP Paribas Mutual Fund. Please go ahead. Kirtan, your line has been unmuted. Please go ahead with your question.
Kirtan Mehta
Am I audible?
operator
Yeah, you are audible.
Kirtan Mehta
Thank you for this opportunity, sir. Wanted to understand the increasingly competitive intensity in the market. Last year I think one of our biggest competitor has been able to double the volume growth as well as we are also hearing from PNC competitor that ONC competitor That they are also planning to sort of increase the focus on the loop segment as well. So which are the specific segments where we are seeing the competitive intensity increasing and what are the specific responses from our side to hold on to our position?
Ravi Chawla
We have been building our two to three years growth for the last decade. And even more so I think our business model. And we also see that we have got scope to grow because our market shares are overall in some segments 9 to 10%, mainly diesel engine, oil, motorcycle. The others we are 6, 7 and sometimes less than 5. So for us, our model continues to be focusing on our strengths, our approach. Competitive intensity has always been there. In this market, as you know, there are 16, 17 players which are the PSUs and multinationals and local brands.
So I think that is something which continues to be there. We are also increasing capacity, as you said, others are also increasing capacity. So I think each brand has its own position. We are very happy to share with you that today DALP is the top two brand in certain segments, top three brand overall in all the segments. As we have invested in the brand, our distribution is also number two in the private sector and we are there. So we have the competition. So we do change our strategy based on segments. And of course competitive analysis happens.
So this is an ongoing process. Like Manish mentioned on the pricing. So this is part of our DNA. And I think our position which has been built up on the brand and our OEM partnerships, our B2C business, our industrial infrastructure segments and other segments which we look at, these have been our strength and we have been able to demonstrate that. And in spite of the competition, competition is there and plus the market is growing 3 to 4%. So most of the players who are there will look at market growth. And definitely the players who can do better will win more.
We have been consistent. In fact this year also we continue to grow and you know, 8% this quarter, 9.3% in the year. So we are focused on that and also keeping ourselves, you know, looking at market share across segments where we are present.
Kirtan Mehta
Sure, sir. One more question was about the market growth itself. So with the GST sort of cuts, there has been some bit of additional growth that we are seeing in the outer market. Do you think that this can change the market growth trajectory from 3 to 4% to an upward range? Are there any initials?
Ravi Chawla
You see this market is lubricants is sold for the factory fill when new Ks are made. So definitely if the auto industry and all sell more, all the industries sell more. Construction equipment, the factory field will go up because that’s a good sign. Most of them are growing 6, 7%. Some are growing. And then you also have the EV penetration coming. So to that extent the new vehicles, some EV is coming in certain segments, 5, 6%, 4%, you know the data. But overall lubricants is going to continue to be consumed and we see that also lubricants are getting better quality.
So Normally we take a percent, 3, 4% because that’s how we are seeing the market in the next decade or so. And in the case of industrial, it will be slightly higher, maybe a percentage higher. So this is the trajectory predicted by experts like Klein. And we also are confident that this will go. Of course we want to look at our market share going up. So we will continue to grow 2 to 3x this growth rate. Thank you, thank you, thank you.
operator
Our next question comes from the line of Bharat Gulati from Dalal and brochure, please go ahead.
Bharat Gulati
Yeah, hi sir, thank you for the opportunity. I had a question regarding our EV segment. Tyrex just wanted to understand what is our future path to growing over there and you know, how do we plan to do we see margins going up in that business and just how do we, you know, kind of understand the trajectory in which we are trying to take it? From a strategy point of view and as well from a market point of. View.
Manish Kumar Gangwal
We see EV as a potential. We know that while we have been very clearly saying that lubricants will continue to grow for the foreseeable future because the ICE vehicle growth will continue, we also believe that there will be an evidence penetration in certain segments in certain proportion. And that is where we wanted to, you know, use that opportunity primarily because of four things. You know, we have a very strong brand in within the automotive segment. Which consumer knows Golf as a brand or the auto automotive users. Today they are using ICE vehicle, tomorrow they may use EV vehicles.
They know Golf as a brand. Second strong point we have is that we have a significant presence in the automotive OEMs, which, you know, we are in touch with for lubricant. And when the incumbent, you know, vehicle manufacturers will launch EV vehicles or EV models, we should be, you know, servicing them in terms of their requirement for chargers, EV fluids, etc. That was a very strong point we have. And then third point is that we have a lot of B2B customers, infrastructure customers who will require chargers and our distribution, which is more than 80,000 touch points.
We have more than 10,000 of Gulf branded bike shops, car stops. So these four, five strengths we have got as a lubricant company. And it was a logical progression to look at EV as an opportunity, as an additional opportunity rather while continuing to focus on lubricant to grow two to three years. So with that thought process, we have been making this as a very strong pillar. When we acquired Tarex 51% stake, which we have now increased during the quarter to 65% in the December quarter, we obviously had a previous audited turnover of 12 crore rupees.
And last year we clogged 80 crore rupees nearly. And this year we are already, you know, they are growing 70, 80% in terms of our growth. So overall we believe that EV Charger business and the other investments we have done in EV will make it very, very strong pillar for us going forward. Our first aim is to have a 300 to 400 crore top line from this business in next three years to four years time and then we’ll build on that. Thank you.
Bharat Gulati
All right, got it. And so just to understand that the new capacity that we’re adding, like you said, that it doesn’t necessarily mean that volumes will go up. It’ll mean that efficiencies will come into our manufacturing instead of over utilizing our current facility. So could this mean that this can somewhat improve our margins? I understand that we’ve given a guidance between the 12 to 14% margin range, but does this mean that with this better efficiencies can help us get to the higher band of that margin range? Or you know, just because currently our capacities are running way beyond that 100% utilization mark.
So.
Manish Kumar Gangwal
So more than cost I think it is, it will bring operational efficiencies and will make us ready for future. Obviously running a third shift in a plant is very, very cumbersome process. In lubricant industries. The processing cost or the manufacturing cost is not that significant part of the overall cost component. So from that perspective it’s a very, very small component of the cost sheet. But having said that, we have to be ready because we make every product in house, we don’t make any of our lubricants and outside. And we need to have capacity because our quality is the most important thing.
And you can only, you know, have a solid control on quality when you make your products in house. So that is why we are building this capacity for future. Obviously our volume growth will be in line with the market demand and 2 to 3x of that what we want to grow.
Bharat Gulati
So that would mean that there wouldn’t be any significant cost Benefit by getting this into our adding the capacity, it would just be an operational benefit overall.
Manish Kumar Gangwal
Yeah. Because in lubricant industry the operational cost of manufacturing cost is very insignificant portion of the overall cost system.
Bharat Gulati
Okay, got it. Thank you sir.
operator
Thank you. Participants who wish to ask a question may press three star and one at this time. Our next question is from the line of Arya Patel from MK Global. Please go ahead.
Arya Patel
Yeah, thank you sir for the opportunity and congratulations on the website of number. I just wanted to ask about, you know. Yeah, am I audible?
Ravi Chawla
Yes, yes.
Arya Patel
Yeah. So I just wanted to ask about how the B prizes have, you know, moved along with the brand. So what we have observed or what believe is the correction that we’ve seen in the Brent prices equivalent has not been seen in the bay oil prices. So how do we look into this and what is our expectations going ahead for the price?
Manish Kumar Gangwal
No, so you’re right. You know, while you know there is a long term correlation between the crude oil prices and the base oil prices, if you plot a chart of five years or you know, three years, you will find a sort of symmetry. But in a short to medium term the demand supply for each grade of base oil also plays a role. And this time around what we have seen also, as you rightly observed is that the fall of crude from 75$80 or around 75 to $65 are translated into the similar kind of fall on Basil site.
Various demand supply situations and many of the major refiners of Basil taking maintenance, shutdowns, etc. So but some perspective. You are right, it has to have a lot of correlation with the crude prices. But in short term demand supply also plays.
Arya Patel
Got it sir. Thank you for the answer. That’s it from.
Manish Kumar Gangwal
Thank you.
operator
Thank you. Next we have a follow up question from Dhawal Popat from Choice International limited. Please go ahead.
Dhaval Popat
Yeah, thank you for the opportunity. I wanted to pass two things. One regarding the M ranges or the N power program that you have been running. So if you can probably provide some color on harvest, how does it stand out or the number of embryons is already on the ground. And second question I have is more from a bazaar perspective. So there are a few refineries who have commissioned these base oil plants recently and so if possible can you comment on whether sulfur will increase its share of domestic procurement of base oil from what it is currently.
Yeah, if possible if you can comment on this.
Manish Kumar Gangwal
Sorry, what was your first question?
Dhaval Popat
First question was on the MPower, the mechanics program that Gulf Oil has launched in August 2025. So I wanted to understand if the number of M rangers already on the ground or how the program has been panning out. Like I understand it is a close to about 100,000 mechanics is what is targeting but how has this program panned out so far? And second question is more on research. So first question I just wanted to know some more color on Empower program if you have.
Ravi Chawla
Yeah, yeah. So this is an initiative which we normally the mechanic is a big influencer at times. Obviously has a very key role to talk about. The influencer is a very key role to play and this is has been part of our marketing mix for ages. But MPower is now initiative which is taken by the marketing team to basically have a dedicated team across to look at mechanics and it is going very well. So I think we are on course as you also put some numbers but basically they cover mechanics and talk to them about our product and obviously we are able to have an exchange with the mechanics in these forums and this helps us to connect, convert people and also increase consumption of Gulf and that that is where the program is and it’s, it’s quite, it’s going in the right direction and right steps as planned.
Yeah, could you hear me? Sorry, there’s some sound disturbance where we are sitting.
Dhaval Popat
Can you hear us?
Dhaval Popat
Yes, yes I’m able to hear you. It was, it was quite clear.
Ravi Chawla
The second thing you see today India is importing a lot of the base oil. Okay. The local capacity that the current PSUs have that is only meeting not even half of the less than half the requirement in terms of the requirement for the base oil in India. So now you have various countries like Korea, Singapore, uae, all kinds of all countries are exporting the base oil. So the capacity increase that the three PSUs are plant is going to take up this current capacity by at least you know, I would say whatever numbers we are seeing in the market that this would go up, you know to at least 50 to 60, 70% more than what it is currently.
But that is all plated capacity. We don’t know what will come. So if that comes in then we will have base oil available here. We are anyway buying from the local supplies and we will be happy if that happens and becomes more competitive so that becomes good for the country also where we can have base oil available here and the importers, the people who are exporting into India they also I think the overall capacity coming up will still require some imports as we look at.
Dhaval Popat
That is helpful. Thank you.
Ravi Chawla
Thank you Dharam.
operator
Thank you. Our next question comes from the line of Prabhal Sen from ICICI Securities Ltd. Please go ahead.
Probal Sen
Thank you sir. I thought I’ll also take the opportunity. I just had a couple of brief questions. Firstly, I think one participant did ask about the competitive intensity. Just wanted to sort of maybe follow up on that. In terms of how you see the, you know, given that everybody is focusing on this business again after maybe a lull over the last two, three years, do you see the overall industry growth maybe picking up over the next three to five years? I mean can the fact that everybody is pushing for it maybe have an influence on overall growth itself?
Ravi Chawla
I think the industry size, what we are seeing is the 3 to 4% growth and maybe slightly higher industrial. Obviously if the penetration of vehicles is more and the economy does even been better, the usage goes up. Whether it’s mining infrastructure, all that appears well for the country as we know is today the third largest market as an economy. Also we are going, you know, we’re going to be a huge economy going up. And I think the competitive intensity is showing that the market is attractive, is showing that there are, there is a attraction of players strengthening their production base as we are also doing.
There are, you know, strategic where people are coming in. But definitely for us the market and the valuation that can happen is basically really helping. And manufacturing push by the government as you look at industrialization will certainly help. So once we see all these coming, probably that manufacturing push where India can become a larger global supplier or regional supplier that can help to grow the market. And I think having more competitors there’s always going to be always the competitive intensity. But I think if you are seeing these shoots coming up, the growth could go up in terms of government push, consumption, gdp.
So that in addition to competition coming doesn’t mean that the market will go up just because of competition. You need to see the other factors going up.
Probal Sen
So just as a follow up in terms of our strategy, obviously I think you and Manisha both have been talking about the fact that there’s a concerted attempt and it’s playing out as well in terms of premiumization of our product line and pricing differentials with the leading players getting cut and therefore margin improvement likely. But if competitive intensity improves, can there be a situation where maybe the margin uptick maybe takes a little bit longer than what we earlier in disaster. As of now we don’t see any threat in terms of at least our targets and our plan?
Ravi Chawla
No, I think the last, if you take the last two decades or 1.5 decades we have been growing and there has been competition even then. So I think for us it is our brand has got built up. So how do we build our distribution faster? How do we get into the segments where we have already made I would say entry and a mid level single digit share. How do you take it up? And that’s what our strategy is which we call unlock 2.0. How can we accelerate, how can we premiumize, how can we transform? We’re also looking at core transformation, digitization.
We’re looking at, you know, getting into the EV space. So for us our strategy is quite clear and we are very well positioned in that. So we see, we see that the adaptability to competition and market is part of our DNA and we are continuing to strive to make it stronger.
Probal Sen
Understood sir, one last question if I may with respect to Tyrex, I’m sorry if I missed this earlier. What is the sort of revenue we are expecting to close this year at and what sort of EBITDA if at all can be shared? As of now.
Manish Kumar Gangwal
On Kyrex we will not give any guidance in terms of number because you know the year is yet to end and it’s a very, you know, it’s a business which is still in its nascent phase. I would say we will have to see every quarter but overall, overall we are looking definitive to close above 100 crore for sure for this common for this business in this year with a positive ebitda.
Probal Sen
Understood sir. That’s all from my end. Thank you operator.
operator
Thank you. As there are no further questions I would now like to hand the conference over to management for closing comments. Over to you sir.
Ravi Chawla
Yeah, thank you. I think I’ve covered some of the outlook in the previous question but just to highlight I had two data points to give. We’ve launched a few next gen product ranges which basically we have launched fire resistance hydraulic oils recently, energy efficient zinc free hydraulic oils mainly for the CE segment. We also launched our new range of syntrac motorcycle oils and number of other gear oils which are synthetic. So just wanted to share that. We’ve also announced strategic tie ups with the leading construction equipment manufacturers, again strengthening our presence in construction infrastructure. Basically Amman, India which is building global leader in road building machinery.
And we are the official lubricants partner for the entire equipment portfolio. Again high performance products under the Amman Genuine oil range. ACE is another partner. We have collaborated to expand with new additions to the genuine oil range of ACE and XCMG which is also a key leading player. Coming up we have also launched the range. So these are the three four points I wanted to add. But coming to the outlook, we are continuing with our unlock 2.0 which I mentioned in the last question. This is basically to focus on accelerating our growth and in the segments where we have lower market share to look at at least three times the market growth rate.
We are increasing our mix of premiums and synthetics and value added products, digital transformation and growth in E mobility value chain. We will focus on these segments and our core segments to grow. We have been growing 2x the industry, 3x the industry, but that continues to be our focus. And definitely we’ve been mentioning our 12 to 14% margin band and with an ambition to go to the higher level. Obviously we have to monitor the pricing and the exchange rate. But we continue to push our product mix marketing initiatives, brand building, focusing on margin management efficiency to get the profitable and sustainable growth which we have.
And I think for us distribution is key to take up double digit. We’ll continue our investments in the brand and we are definitely looking at going to the next level and continuing our growth trajectory. So look forward to interact with you the next quarter. And thank you so much for your time. Good evening.
operator
Thank you. On behalf of ICICI Securities Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.