Lubricants industry

10 companies · ₹37,472 cr · 7 with AI deep dives · Q1FY27 report

Hormuz closure inflates sector margins to record highs, but managements call the windfall non-recurring.

Turning upmargin troughed at 11.1% and has risen for 7 quarters to 20.5%, on positive revenue growth

Revenue YoY: +56.0%
EBITDA margin: 20.5%; +810bps YoY
Price, 1 year: +28.1%; 50% of names up
P/E vs own 5y: -9.3%; 10.7x now

Exhibit 1The quarter in numbers

constant panel of 6 companies above ₹500 cr

aggregate revenue (₹ cr)EBITDA margin (right axis)

Metric	Jun 26	Mar 26	QoQ	Jun 25	YoY	Peak	vs peak
Revenue	8,754 cr	6,348 cr	+37.9%	5,612 cr	+56.0%	8,754 cr	0.0%
EBITDA margin	20.5%	11.8%	+870bps	12.4%	+810bps	20.5%	0bps

Revenue

Jun 26: 8,754 cr
Mar 26: 6,348 cr
QoQ: +37.9%
Jun 25: 5,612 cr
YoY: +56.0%
Peak: 8,754 cr
vs peak: 0.0%

EBITDA margin

Jun 26: 20.5%
Mar 26: 11.8%
QoQ: +870bps
Jun 25: 12.4%

Sept 26: 0 of 6 reported so far, so it is not in the trend above.

Breadth: 100% of 6 companies grew revenue year on year (was 100% a quarter earlier) and 83% expanded margin (was 50%).

Exhibit 2What it costs

9.69x - 13.23x across the panel today

The median name trades at 10.7x, -9.3% against this industry's own 5-year median of 11.8x, and -57.9% against its own peak of 25.3x.

Exhibit 3Structure

₹37,472 cr

Castrol India Ltd is 51.4% of this industry by market cap. The top 5 are 92.7% and the top 10 are 100%.

mid 1small 5micro 46 above ₹500 cr

Exhibit 4Screen

P/E below the sub-industry median of 10.66x, 5y ROCE above its median of 19.21%, and at least 2 growth triggers stated on the latest earnings call.

Which names clear this screen is premium

The screen runs on stated growth triggers from the latest earnings calls - the same guidance data the stock screener reserves for premium. Premium names every company in this industry that is cheap against its own median and has the triggers behind it.

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Exhibit 5Coverage (10 of 10)

Every company here with a deep dive, topped up by market cap. The rest of the industry is in the appendix.

Company	Mcap	P/E	EV/EBITDA	ROCE	Margin	Rev YoY	Read
Castrol India Ltd	₹18,877 cr	18.1x	13.8x	61.4%	23.5%	+27.3%	Unlock
Gulf Oil Lubricants India Ltd	₹5,221 cr

Exhibit 6What managements said

from this industry's latest earnings calls · as of 2026-06-30

mixedMiddle East supply shock drove base oil prices to crisis levels, inflating revenues and margins sector-wide5 managements

All five companies reporting the June 2026 quarter cited the Strait of Hormuz closure as the defining event. Group III base oil prices surged (Gulf Oil noted crude reached…

GULFOILLUB (Q1FY27): “Strait of Hormuz is still like almost shut. So it's very difficult to say how the things…”

headwind4 managements tailwind3 managements

Exhibit 7Outlook

The outlook and what resolves next quarter

Where these managements said things are heading, and the dated, checkable events that would change it. Free with an account - 3 full reports a quarter.

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AppendixThe other 0 companies

1-0

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