Revenue surge, profit retreat; execution in focus

Delivered ₹59.9 Cr, +51.6% YoY confirmed; international operations scaling

EBITDA margin 7.64% vs 9.81% prior; 215 bps compression YoY

PAT ₹2.0 Cr, down 12% YoY from ₹2.33 Cr; profit fell despite 51% revenue surge

EBITDA margin fell 215 bps; finance cost jumped ₹0.6 Cr (66% rise); explanation corroborated

CFO stated 40% directly; no segment margin breakdown provided

Confirmed in Q&A; toll blending second, trading third; no margin percentages by segment

CFO stated 70-75%; attributed to B2B distributor model, not direct retail

45% utilization confirmed on single shift; additional storage may be needed at full utilization

No disclosed prior FY27 numeric guidance to compare. FY27 ≥₹200 Cr revenue estimate (conservative, war-inclusive scenario) is new guidance.

Strategic pivot to India domestic via Quebec 40% stake (modern manufacturing, robust distribution). Expands addressable market beyond ME/Africa to subcontinent.

Kenya grease facility Q3 planned; Tanzania on roadmap. Broadens geographic resilience and product portfolio vs prior dual-facility (UAE/Kenya) focus.

Base oils positively correlated with crude but lags; not directly coupled or same-percentage pass-through. Will be affected in same direction but not immediate.

~45% on single shift currently. Sufficient capacity for 2-3 year projection; may need additional storage if full utilization pursued.

Manufacturing offers highest margins, both current and historically. Trading lower, toll blending aggressive. Manufacturing outperformed other two sectors consistently.

Premium and specialty lubricants contribute ~40% of topline.

Grease setup sufficient to cater entire East Africa; noted few greases units in region. Toll blending opportunities noted. No specific KL number or revenue projection disclosed.

Kenya has standard payment terms; Shell and Total traditional, don't alter terms for new entrants. No evidence of aggressive pricing wars.

50% topline growth coupled with price increases (products + freight/insurance from ME war). Clients receive higher-priced goods; receivables scale with volume and pricing.

Already 6 months in (Feb-Aug). Already onboarded new customers, broadened product basket. Conservative estimate: ≥₹200 Cr FY27 with healthy EBITDA margins even if war persists. Will diversify business and product mix; margins to stabilise or improve.

40% associate stake (not subsidiary). Quebec is old, well-established India player with modern manufacturing, robust distribution. Adds India domestic market access plus new product launch opportunities. Profits consolidated at 40% equity stake.

Target: 75-80% manufacturing+toll blending combined, 20-25% trading. Toll blending aggressive; in talks with MNCs in East Africa for contracts.

70-75% from top 10 customers. B2B model with distributors; explains concentration; appointees include distributor partners counted in top 10.

Even if ME disruption continues 6+ months, management targets ₹200 Cr FY27. Q1 annualized run-rate ~₹240 Cr; ₹200 Cr is conservative buffer for uncertainty.

Q1 EBITDA margin 7.64% vs 9.81% prior year; no specific target margin disclosed. Management expects margin stabilization if war disruption eases and business diversifies.

Recently launched modernization program ongoing. Kenya grease facility Q3 FY27. Tanzania warehouse/distribution FY27-28 phase-in. No total capex budget disclosed.

70-75% of revenue from top 10 customers via B2B distributor model. Loss of one major distributor could reduce revenue 10-15% and profit more. Leaves company vulnerable to distributor negotiating power.

Q1 revenue up 51.6% but PAT down 12% YoY. EBITDA margin fell 215 bps (9.81%→7.64%). Cost inflation (inputs, freight, finance) exceeded pricing power. Signals operational/cost management challenge.

ME war ongoing 6 months (Feb-Aug 2026) with no clear end. Inflated base oil prices and shipping costs directly; management already saw margin compression in Q1. Extended disruption threatens near-term margin recovery.

Three major initiatives in parallel: Kenya grease facility Q3 FY27, Tanzania warehousing/manufacturing FY27-28, Quebec 40% associate integration. Any stumble delays revenue and profit ramp.

Q1 NPM 3.4%, down from ~6% in Q1 FY26. Thin cushion for adverse events (customer loss, cost spikes, price war). Already saw profit decline in Q1 despite revenue surge.