Gulf Oil Lubricants India will invest ₹55 crore over the next two years to expand its lubricant manufacturing capacity at Chennai and Silvassa by around 70%, as the company prepares for sustained demand growth across automotive and industrial segments.
The expansion comes as both plants are operating close to three-shift capacity. The additional capacity is expected to provide headroom for the next two to three years, with greater focus on premium and value-added lubricants. The Chennai expansion is likely to be commissioned by December, while the augmented capacity at Silvassa is targeted for March.
“This is a considered, demand-led step. Our plants have been running close to three-shift capacity, so this both relieves that pressure and gives us headroom for the next two to three years of growth across automotive and the fast-growing industrial segment,” Ravi Chawla, MD and CEO, Gulf Oil Lubricants India, said.
Gulf has consistently outpaced the lubricant industry, growing volumes at two to three times the sector rate for more than 15 years. In FY26, its lubricant volumes grew 11%, against industry growth of 3-4%, driven by premiumisation, a wider distribution network and stronger OEM partnerships.
The company’s consolidated revenue crossed ₹4,000 crore for the first time in FY26, rising nearly 12% to around ₹4,056 crore. Consolidated EBITDA exceeded ₹500 crore, while margins remained around 13% despite rupee depreciation, foreign exchange challenges and higher input costs.
Gulf expects to maintain its volume growth at two to three times the industry rate in FY27, while guiding for an EBITDA margin of 12-14% amid volatile input costs, supply constraints and pricing pressures. In Q1 FY27, core lubricant volumes rose 17% year-on-year to 48,000 kilolitres. Revenue crossed ₹1,300 crore, EBITDA exceeded ₹170 crore and profit reached a record ₹128 crore.
Premiumisation remains a key growth driver. While lubricant volumes are expanding at around 3-4%, industry value growth is roughly twice that rate as consumers increasingly shift towards synthetic and semi-synthetic products. Gulf is expanding its fully synthetic motorcycle oil portfolio and developing environment-friendly products, including biodegradable hydraulic oils.
Passenger car lubricants and industrial oils are among the company’s key growth opportunities. Its B2B industrial business, agriculture segment and OEM workshop network are also gaining traction.
Gulf is simultaneously building an electric mobility business. Its EV subsidiary Tirex crossed ₹100 crore in revenue in FY26, while a separate manufacturing expansion at Gandhinagar is expected to be commissioned in Q3 FY27.
Gulf holds more than 65% in Tirex and also has investments in Indra Renewables and ElectreeFi. These businesses provide exposure to EV charging hardware, home charging and software solutions, while the core lubricant business continues to serve both internal combustion engine vehicles and emerging electric mobility applications.