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| Product | Quantum (Rs. Cr) (SEBI) | Quantum (Rs. Cr) (Other FSR) | Long Term Rating | Short Term Rating | Regulated By |
| Bank Loan Ratings | 0.00 | 95.00 | ACUITE A | Stable | Reaffirmed | - | RBI |
| Bank Loan Ratings | 0.00 | 919.00 | - | ACUITE A1 | Reaffirmed | RBI |
| Total Outstanding | 0.00 | 1014.00 | - | - | - |
| Total Withdrawn | 0.00 | 0.00 | - | - | - |
| Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
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Rating Rationale |
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Acuité has reaffirmed the long-term rating of 'ACUITE A' (read as ACUITE A) on the Rs.95.00 Cr. bank facilities and the short-term rating of 'ACUITE A1' (read as ACUITE A One) on the Rs.919.00 Cr. bank facilities of Gandhar Oil Refinery India Limited (GORIL). The outlook is 'Stable'.
Rationale for rating The rating reaffirmation considers the healthy scale of operations, with recovery in revenue in 9MFY26 post the decline in FY25, along with moderate improvement in margins. Further, the rating also takes comfort from the group's established track record of operations, relationship with reputed clientele. Also, the financial risk profile continues to remain healthy with minimal reliance on external debt and strong liquidity. However, the rating remains constrained on account of moderately intensive working capital cycle and susceptibility of group's profitability to volatility in raw material prices arising out of the disruptions due to the ongoing West Asia war conflicts and other external factors. |
| About Company |
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Incorporated in 1992, GORIL is a Mumbai based company engaged in production of specialty oils. The company is majorly engaged in manufacturing of white oils which have applications in consumer and healthcare industries. Further, the company is also engaged in production of other specialty oils and lubricants such as automotive oils, industrial oils, transformer oils and rubber processing oils. The company operates two plants – Taloja (capacity of 2,18,256 KL) and Silvassa (capacity of 1,43,853 KL). The company is currently managed by Mr. Samir Parekh and Mr. Aslesh Parekh.
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| About the Group |
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Gandhar Group (Group) includes GORIL, the flagship company, Gandhar Shipping and Logistics Private Limited (GSLPL), Gandhar Foundation (GF) and Texol Lubritech FZC (TLF). Overall, the total installed capacity of the group is 5,97,403 kilolitres (KL).
GSLPL is a Mumbai-based company incorporated in 2010. It is a fully owned subsidiary of GORIL, engaged in providing logistical support to the parent. GF was incorporated on June 05, 2023, is a non-profit organization focusing on CSR initiative of the group. TLF is a Sharjah-based company that started its operations in 2019, engaged in similar operations as of GORIL with a capacity of 2,35,294 KL. The company was initially a 50:50 JV between GORIL & ESPE Petrochemicals FZC, subsequently GORIL acquired 50.10% of the company w.e.f March 30, 2022. |
| Unsupported Rating |
| Not applicable. |
| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuité has consolidated the business and financial risk profiles of GORIL along with its subsidiaries- Gandhar Foundation (GF), Gandhar Shipping and Logistics Private Limited (GSLPL) and Texol Lubritech FZC (TLF). The consolidation is in view of the common management, strong operational & financial linkages between the entities and corporate guarantee extended by GORIL to Texol Lubritech FZC (TLF).
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| Key Rating Drivers |
| Strengths |
| Extensive industry and promoter experience with diversified client portfolio
The group has nearly three decades of experience in the specialty oil industry and is known for its presence in the industry at both domestic and international forums. The company was started by Mr Ramesh Parekh, Chairman, who is now supported by his sons Mr. Samir Parekh, and Mr. Aslesh Parekh. The group also caters to a reputed clientele base in more than 100 countries, including the UAE, Brazil, the USA, Europe, and Asia with nearly 40% of revenue being derived from international sales. Further, revenue is diversified across Personal care, Healthcare and Performance oil (PHPO) segment having share of ~ 47% of FY25 revenue, Lubricants ~9.2%, Process Insulating Oil (PIO) ~28.6% and channel partners ~15%. Its clients include reputed names such as Unilever, Proctor & Gamble, Marico, Dabur, Emami, Indian Railways, State Electricity Boards, and Discoms. The company also has established relationships with its suppliers wherein it has entered into supply contracts with large international as well as domestic oil refineries such as Saudi Aramco, S-Oil Corporation. Acuité believes that group will continue to benefit from its experienced management, established relations with clients and suppliers, and long track record of operations. Healthy scale of operations albeit moderate margins The group's consolidated scale of operations stood lower at Rs.3,896.92 Cr. in FY25 against Rs.4,113.21 Cr. during FY24. This is attributable to overall low demand from the FMCG and Pharma sector and resulting which the volumes also remained impacted. Also, the increasing freight rates and delays in import shipment of raw materials led to increase in input cost due to the Red Sea issue affecting the operating margin which stood at 4.53% in FY25 compared to 6.81% in FY24. Further, the PAT margin stood at 2.14% in FY25 (4.02% in FY24). Moreover, in FY26 the demand picked up moderately with slight improvement in realizations, thereby leading to topline of ~Rs.3,129 Cr. in 9MFY26 (Rs.2,935.20 Cr. in 9MFY25) with moderate improvement in operating and profitability margins at ~5% and ~3% respectively. Further, the company completed its capex at the Silvassa plant for enhancement of total capacity by 18,000 KL towards manufacturing of automotive oils at a total cost of ~Rs.28 Cr and the plant was operational from FY26. However, considering the ongoing geopolitical crisis, its impact on the operations of Sharjah subsidiary and procurement challenges owing to inputs being crude derivative remains a key rating monitorable. Healthy financial risk profile The group's financial risk profile has remained healthy, marked by improved tangible net worth of Rs.1,177.47 Cr. as on 31st March 2025 against Rs.1,161.68 Cr. as on 31st March 2024. The gearing stood improved and remained below unity at 0.15 times as on 31st March 2025 (0.17 times as on 31st March 2024). Moreover, the debt protection metrics also stood healthy with interest coverage ratio of 3.85 times in FY25 (4.89 times in FY24). The Debt/EBITDA stood at 0.96 times as on 31st March 2025 (0.70 times as on 31st March 2024). Acuité believes that the debt indicators are expected to improve further on account of the healthy cash accruals and no significant debt funded capex plans, which shall be a key rating sensitivity. |
| Weaknesses |
| Moderately intensive working capital cycle
The group’s working capital operation is moderately intensive marked by gross current asset days of 139 days in FY25 (137 days in FY24). This is mainly attributable to the receivable period and inventory days which stood at 45 days and 63 days in FY25 respectively. However, the counter parties that the company deals with are large, reputed companies thus this reduces the risk of debtors turning doubtful. However, the fund-based bank limit was utilized only in the month of December 2025 with 27.45% utilization and the non-fund based limits stood at an average of 34.48% for the last 6 months ended December 2025. Susceptibility to volatility in raw material prices , exposure to forex risk and global disruptions The key component in manufacturing specialty oils and lubricants is base oils which forms nearly 80 percent of the groups’ raw material costs. It is a derivative of crude oil, produced by refining crude, and therefore susceptible to volatility in crude oil prices. However, the group holds the requisite quantity of inventory and has ‘pass through’ clauses in the contracts with the customers to mitigate the risk of volatility in commodity prices, thereby protecting its margins. The group is also exposed to significant forex risk and global disruptions as it imports 80 percent of its raw materials and overseas sales accounts for 40 percent of the revenue. While some of the foreign exchange risk is mitigated through a natural hedge, balance is managed through hedging. |
| ESG Factors Relevant for Rating |
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The group is committed to improving their performance in Environmental, Social, and Governance (ESG) factors through initiatives like energy-efficient lighting, tree planting, and waste reduction. They promote inclusive growth through employment and training opportunities for all employees, prioritizing their safety and well-being. The group also has a dedicated CSR program that supports community development nationwide. Also, the proactive efforts by group in emission reduction, water and energy conservation, and waste management demonstrate the commitment to minimize the environmental footprint. Further, GORIL has an established risk governance framework that includes Risk Management Committee responsible for business risk and opportunities. On the governance front, GORIL's board comprises mix of experienced and knowledgeable members which includes three executive directors and three independent directors.
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Rating Sensitivities
| Potential triggers (individual or collective) for an upward rating action: |
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| Potential triggers (individual or collective) for a downward rating action: |
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| Liquidity Position |
| Strong |
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Liquidity position of the company is strong as reflected from sufficient net cash accruals (NCA) of Rs.109.39 Cr. in FY25 against maturing debt obligations of Rs.3.78 Cr. Besides, the group also had unencumbered cash and bank balances of Rs.28.78 Cr. as on 30th September 2025 providing addition support to liquidity. Further, the current ratio stood healthy at 2.88 times as on 31st March 2025. The company is expected to generate cash accruals in the range of Rs.130-150 Cr. over the medium term, against no committed debt repayment obligations. Moreover, the fund-based bank limit was utilized only in the month of December 2025 with 27.45% utilization and the non-fund based limits stood at an average of 34.48% for the last 6 months ended December 2025.
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| Outlook: Stable |
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| Other Factors affecting Rating |
| None. |
| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 3896.92 | 4113.21 |
| PAT | Rs. Cr. | 83.50 | 165.32 |
| PAT Margin | (%) | 2.14 | 4.02 |
| Total Debt/Tangible Net Worth | Times | 0.15 | 0.17 |
| PBDIT/Interest | Times | 3.85 | 4.89 |
| Status of non-cooperation with previous CRA (if applicable) |
| Not applicable. |
| Any Other Information |
| None. |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm |
| Note on complexity levels of the rated instrument |
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| Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||||
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Contacts |
List of instruments and names of regulators of the instruments |
