According to reports from CNBC TV18, Gandhar Oil Refinery India Ltd has identified multiple operational risks stemming from ongoing geopolitical tensions in West Asia. The company reported a 20% surge in base oil prices over the past 15 days, substantial depreciation of the Indian rupee, and higher freight costs due to changes in global shipping routes and limited marine insurance availability. The company has now updated its assessment to include potential impacts on its UAE operations, stating that if the war continues, raw material supply could be affected, potentially impacting UAE operations. Despite these challenges, the company maintains that its UAE plant, a 50.1% subsidiary, is currently maintaining optimum inventory levels with ongoing domestic sales.
As reported by CNBC TV18, Gandhar Oil has implemented comprehensive risk management measures to address these challenges. The company maintains adequate inventory levels to meet foreseeable orders and benefits from being index-linked, allowing base oil price increases to be passed on to customers through pass-through contracts. Forex risks are managed through the company's forex risk management policy, supported by a natural hedge from overseas sales, which account for roughly 45% of consolidated revenue. Freight risks are addressed by broadening the supplier base across multiple locations and securing long-term contracts for agreed volumes at fixed pricing formulas. The company regularly revises its price list to reflect changes and maintains adequate inventory levels to meet foreseeable orders.
According to CNBC TV18, Gandhar Oil's consolidated results as of December 31, 2025, showed total income of ₹3,139.15 crore for nine months, with EBITDA of ₹171.04 crore, PBT of ₹128.07 crore, and PAT of ₹92.74 crore. The company emphasized that it is confident that robust risk management measures undertaken will result in continuity and growth, with management constantly monitoring the situation and any further material developments to be shared with stakeholders.
As reported by CNBC TV18, shares of Gandhar Oil Refinery India Ltd ended at ₹129.90, down by ₹0.25, or 0.19%, on the BSE on March 12. The company stated that as a listed entity, it appreciates the need for appropriate and transparent communication with all stakeholders regarding the geopolitical uncertainty from the Middle East war, reinforcing stakeholder confidence in its risk management capabilities. The company emphasized that it is confident that robust risk management measures undertaken at their end will result in continuity and growth, with management constantly monitoring the situation.
