Arabian Petroleum Ltd(ARABIAN)

NSE: ARABIAN

₹ 98-1.01%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 107 crUpdated: 24 Oct 2026

About

Arabian Petroleum formulates more than 500 lubricant products at its manufacturing base at Ambernath near Mumbai, selling under its flagship ARZOL brand across industrial, automotive, private label, government, export and process oil verticals. FY26 consolidated revenue was ₹413.27 crore. It ranks among the top 20 lubricant brands in India by volume and holds 13th position among Indian-origin home-grown lubricant brands.^[1][2]

Business mix and geography

Reports a single segment, lubricants; revenue comes from six verticals: Industrial, Automotive, Private Label contract manufacturing, Government Tenders, Global exports and Process Oils (FY26).^[1]
India revenue was ₹36,744.23 lakh in FY26 vs ₹24,751.74 lakh in FY25; Rest of the World was ₹4,583.14 lakh vs ₹3,772.92 lakh.^[1]
Dubai subsidiary Arzol Petroleum Trading FZE booked ₹3,768.70 lakh revenue (9.10% share) in FY26 and broke even in its first year.^[3]
Lavisa Technologies (metalworking fluids) made ₹80.61 lakh revenue (0.20% share) at a small loss in FY26.^[3]

Products and brands

Formulates more than 500 products; ARZOL, launched in 2015, is the flagship automotive lubricant brand (FY26).^[1]
Exclusive tie-up with a subsidiary of Ukraine's XADO Group for revitalizing-technology raw materials used in PROBUZ and REVERTO lubricants.^[1]
Milage Synactivs 15W-40 engine oil is approved by Volvo Group Trucks Technology, Renault Group and MACK Trucks; BEML gave OEM approval for the full range.^[1]
Secured NSF food-grade certification and BIS certification for transformer oil in FY26, opening pharma, food and transformer-oil tenders.^[1][3]
Absorbed DRDO technology transfers for Universal Recoil Fluids and low-temperature coolants for defence use.^[1]

Operations and capacity

Production capacity of 48,000 KL p.a. at Ambernath near Mumbai (FY26).^[3][1]
Utilisation was about 70% of 48,000 KL as of the Q3 FY26 call, with small-pack filling the bottleneck; 75% was cited on the Q2 FY26 call.^[4][5]
Volumes of 24-25 KT cited on the Q3 FY26 call; H1 FY26 volume grew about 21%.^[4][5]
ISO 17025 NABL-accredited lab with ICP-OES and FTIR; ISO 9001, 14001 and 45001 certified; API licensed (FY26).^[1]
About ₹1 crore invested in R&D equipment for an expanded 1,500 sq ft R&D facility in H1 FY26.^[5]
Debtor days fell from 62 to 48 as of October 2025; lead times fell from 7-10 days to 3-5 days.^[5][4]
More than 250 employees (FY26).^[1]

Customers and distribution

Serves customers across 22 states through over 300 distributors and exports to more than 30 countries (FY26).^[1]
Customers include JSW, Tata, Mahindra, Ashok Leyland, HAL, ITC, the Indian Air Force and the Indian Navy.^[1]
Private-label clients include Varroc Engineering, Mahindra First Choice, Greaves Cotton, Gabriel India and Godrej & Boyce.^[1]
Government clients include BEML, BEL, BHEL, Mazagon Dock, Indian Railway and several Coal India subsidiaries.^[1]
Export markets include Guyana, Oman, Qatar, Vietnam, Sri Lanka, Zambia, Bangladesh, Chile, Peru, Mauritius and Dubai.^[1]
Added 4 new export countries across the Middle East and Central America and opened a Bangalore warehouse in FY26.^[4]

Orders and contracts

ONGC rate contract of about ₹20.55 crore, followed by a three-year ONGC rate contract of about ₹14.55 crore effective March 2026.^[1]
BHEL purchase order of about ₹19.02 crore for turbine, hydraulic and lubricant oils (FY26).^[1]
Multi-product order of about ₹5.5 crore from MOIL (FY26).^[1]
Indian Army defence-grade lubricant order of about ₹90 lakh in FY26.^[3]
Other FY26 wins: BEML rate contract, repeat BRO Project Dantak (Bhutan) order, an ISRO development order and a maiden hydraulic-oil order from a top-five global tractor maker.^[1]

Expansion and backward integration

In-house fatty acid amide production began in December 2025, with esterification to follow, to cut reliance on imported raw materials.^[1][3]
Unit 3 at Ambarnath is operational to debottleneck small-pack filling (Q3 FY26 call).^[4]
Debottlenecking and interim expansion planned to create headroom for volume growth (Q1 FY27 call).^[3]
Plans to consolidate north warehouses (Ludhiana, Bhiwadi, Gurgaon) under one roof, with an east warehouse later.^[4]
Plans to transfer Arzol brand IP from the promoter to the company in FY27.^[4]

Subsidiaries and recent developments

Arzol Petroleum Trading FZE, a wholly owned subsidiary in Jebel Ali Free Zone, Dubai, trades finished lubricants and sources raw materials; management expects profit from FY27.^[1][3]
91%-owned Lavisa Technologies took over EmulsiChem's metalworking business via a business transfer agreement signed 3 December 2025, bringing OEM customers such as Tata Motors, Kirloskar and Greaves.^[1][4]
EmulsiChem's business did about ₹30 crore revenue at its peak at about 40% gross margin, per management.^[4]

Market Cap

₹107 Cr

High / Low

₹109 / 63

Stock P/E

10.1

Price / Book

1.8

Book Value

₹64

EPS

₹10.3

No. of Shares

1.09 Cr

ROCE

18.3%

ROE

17.6%

OPM

4.5%

Debt / Equity

0.69

Sales

₹413 Cr

Net Profit

₹11 Cr

Promoter holding

73.5%

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