Gandhar Oil Refinery India Ltd on Thursday (March 12) said ongoing geopolitical tensions in West Asia have created multiple operational risks, including 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 said its UAE plant, a 50.1% subsidiary, is maintaining optimum inventory levels, and domestic sales are ongoing. However, if the war continues, raw material supply could be affected, potentially impacting UAE operations.
To mitigate these risks, Gandhar Oil maintains adequate inventory levels to meet foreseeable orders. Being index-linked, base oil price increases can be passed on to customers through pass-through contracts, and the company regularly revises its price list to reflect changes.
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Forex risks are managed through the company’s forex risk management policy, supported by a natural hedge from overseas sales. Freight risks are addressed by broadening the supplier base across multiple locations and securing long-term contracts for agreed volumes at fixed pricing formulas.
“In the backdrop of geopolitical uncertainty on account of the war in the Middle East, we, as a listed company, appreciate the need for appropriate and transparent communication with all stakeholders. We are confident that robust risk management measures undertaken at our end will result in continuity and growth. We are constantly monitoring the situation, and any further material developments will be shared, reinforcing stakeholder confidence,” the company said.
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Consolidated results as of December 31, 2025, showed total income of ₹3,139.15 crore for nine months, EBITDA of ₹171.04 crore, PBT of ₹128.07 crore, and PAT of ₹92.74 crore. Overseas sales account for roughly 45% of consolidated revenue.
Shares of Gandhar Oil Refinery India Ltd ended at ₹129.90, down by ₹0.25, or 0.19%, on the BSE today, March 12.
(Edited by : Shoma Bhattacharjee)
First Published:Â Mar 12, 2026 6:56 PM IST
