Gandhar Oil Refinery (India) Limited (GANDHAR) Q3 2026 Earnings Call Transcript

Thank you. Ladies and gentlemen, good day and welcome to Gandhar Oil Refinery, India Ltd. Q3 and 9 months FY26 Earnings Conference Call, hosted by MUFG In Time Private Ltd. As a reminder, all participants' line will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star and then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Ayushi Gupta from MUSG in Time Private Limited. Thank you and over to you, Ms. Gupta.

Thank you. Good morning, everyone. I welcome you all to the Q3 and 9-month FY26 Earning Conference Call of Kanda Royal Refinery India Limited. To discuss this quarter's diverse and financial performance, we have from the management, Mr. Ashish Parekh, Joint Managing Director, and Mr. Inderjee Bhattacharya, CFO. Before we proceed with the call, I would like to mention that some of the statements made in today's call may be forward-looking and may involve risk and uncertainties. For more details, kindly refer to the investor presentation and other findings that can be found on the company's website and on the stock exchange. Without further ado, I would like to hand over the call to the management for their opening remarks, and then we can open the floor for Q&A. Thank you and over to you, sir.

Thank you. First of all, good morning to everyone who is joining us on this call. I am Ashish Parekh, Joint Managing Director of Ramdar Oil Refinery, India Limited. I am joined today by our GFO, Mr. Indrajit Bhattacharya. We appreciate your time and participation as we discuss our financial performance for the third quarter and the nine months ending 31st September 2025. I will begin by sharing our perspective on the operating environment and how our business has performed amidst the dynamic economic landscape. The global white oil market continues to exhibit steady structural driven growth. Based on the recent industry estimates, the market was valued at approximately $3.6 billion in 2025 and is expected to be around $4.66 billion by 2034, expecting a CAGR of about almost 3% over 2025 to 2034 pg. This growth is underpinned by the essential role of white oils in regulated and performance-sensitive applications, where consistency, safety and compliance remains very critical. Recently, Asia Pacific remains the largest contributor to the global white oil demand, accounting to over 40% of the total consumption, supported by industrial expansion, rising healthcare usages, and growing personal care adoption. At the same time, developed markets continue to demand higher quality grades due to tighter regulations. These dynamics align well with Ganda's policy and operating spend and reinforce our position within the global white oil value chain. During the third quarter of FY26, Ganda recorded a consolidated revenue of 1,167 crore, reflecting a healthy year-on-year improvement of 16% and quarter-and-quarter growth of 10%. For the ninth-month period ended FY26, the total revenue stood at around 3,130 crore, demonstrating stable performance despite a challenging macroeconomic environment mark 5. Pricing volatility and logistical disruptions. International market continues to play a very important role in our overall performance, with overseas sales contributing to around 45% of the conserved revenue during the 9-month period. This sustained contribution from the global market underscores the strength of our international customer base and reflects the steady progress we are making in expanding and keeping our global footprint across key geographies. With this, I would now like to hand over this call to our CFO, Mr. Inderjik Pataljari, who will take you to the financials in detail. Thank you once again and over to you, Inderjik.

Thank you, Ashishbhai, and good afternoon to all participants. Let me take you to the financial highlights for the third quarter and nine-month ended FY26. On a consolidated basis, revenue for Q3 FY26 stood at 1167 crores, reflecting a sequential increase over Q2 FY26 and healthy year-on-year growth of 16% compared to Q3 FY25. For the nine-month added FI26, consolidated revenues showed at Rs.3130 crores, supported by steady volumes and consistent demand roles across markets. EBITDA for Q3 FY26 was 59 crores, while this represents a moderation compared to the strong performance in Q2 FY26, which remains significantly higher on a year-on-year basis. For the nine-month period EBITDA stood at 171 crores, underscoring the resilience of our operational performance. Profit after tax for Q3 FY26 was Rs.34 crores, compared to Rs.40 crores in Q2 FY26 and Rs.20 crores in Q3 FY25. For the nine-month-ended FY26, Pat stood at Rs.100 crores, reflecting a strong improvement over the corresponding period last year. Our segmental revenue mix for 9 months FY26 remained well diversified with PHTO contributing 50% followed by lubricants at 26.8% and PIO at 9.5%. The manufacturing gross margin spread for Q3 FY26 would have to be 7,271.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue ascends. The first question is from the line of Rohit from I Thought PMS. Please go ahead.

Yeah.

Good morning, sir. Thank you for the opportunity. So, just three questions. One was, if I look at the history of our company over the last 7-8 years, operating margins have over between 2-3% and about 7-8%. And right now, we're at about 5% in this quarter. Uh, so just from, to understand, uh, I understand that gross quantities are pretty low. Uh, so, I mean, when you look at your business, what is the, uh, general operating margin that you would, uh, that you would sort of say that this is a normal operating margin for a business? I know it can fluctuate a quarter here and there, but I'm just trying to understand on a normalized basis, how do you see?

So, by operating margins, we will be talking about EBITDA. We are looking at EBITDA in excess of about 5-5.5% annually. And we expect it to keep going up from north. I mean, all other conditions, all other circumstances remaining the same.

And so, we, I mean, there are some other... I mean, some of your peers were also listed, and I was trying to sort of compare. So we are more focused on the personal health care, personal care and health care segment. So any specific reason for that? I mean, and also if you can sort of comment on where the margins are better, where the sort of customers are more sticky. I mean, there are other segments like transformer oil is there. So, if you can maybe just explain what, if you can give an overview about these other segments and why we've chosen on the performance, I'd question the assessment.

Sure. See, Gander Oil is not only focused on THV as a product matrix, but, you know, we also are, you know, having other products in our portfolio, including the gasmur oil, including the rubber processing oils, including the lubricant. The value share, you know, across the value chain, if we discuss, you know, around 50% of the total contribution is shared from the PHCO sector, which is the personal care, healthcare performance development. The other businesses are also growing. PHCO as a business, I mean, obviously, last, see, last one and a half to two years, obviously, the cosmetics and the pharmaceutical industry has not been doing so well, you know, because of the domestic consumption, you know. We anticipate the consumption, you know, to move up. I mean, after discussion with our, you know, various FMCC customers, they are also anticipating the pickup and demand, you know, post the GAC rate cut, you know, post liquidity, you know, in the system. So, we are highly hopeful that, you know, the FMCC sector, you know, will turn around very soon. Having said that, you know, most sticky customers are in the PHPU business where, you know, the entry to a customer is more than, you know, like seven to eight years of timeframe. And, you know, once you are there with the customer, we grow with the customer. That's what we have experienced. So, and if you see the other business, it's more of a price density, price driven business. For example, it's a transformer oil. It's purely a price driven business. It's a tender business. You know, the margins are pretty low. And, you know, even the debtors, even the collection from this segment is pretty, pretty high compared to the PHP segment. So, the focus will still be on the PHP estimate. Having said that, we are also, you know, not only dependent on our domestic customers, we are also dependent on our overseas business, which is also contributing to around 35-40% of the total revenue of the company. We are, you know, on the verge of, you know, adding some new products also to the pipeline, and we are very hopeful that our EBITDA margins in the near future will definitely go up.

Got it. Just on this question. Just on this question on the volatility of raw materials. So, how does it work, sir? Because these are all crude oil derivatives. So, based on pricing, how does it work with your customers?

So, see, big oil is a KRN, you know, for any other product mix, wherein, you know, we have some contracts with our suppliers, you know, for annual offtake of our big oil to service our customers. So, with suppliers, we do have, you know, pricing formulas in place. With few of our select customers, you know, we do have price pass-through mechanism, you know, wherein changes in the raw material price, changes in the product price are passed on to our customers. Only three of our four customers, you know, we have a pricing on every 15 days, every fortnight mechanism bearing, you know, any change in the price, you know, is passed on to the customer on four-time business. Having said that, we have more than 4,000 plus head of customers, you know, so the repeat auto is from this customer is more than 75 percent.

Yeah. With like sticky customers, we have a history of over 70 percent of repeat customers for the last three to four years.

So, you see that with two customers, we have pricing contracts, and with two customers, we have like a 15-day price change that happens. Every corporate, we change the price. So, what share would be, how these pricing contracts, where we'll have a formula and any change will sort of automatically get accommodated? What percentage of our revenue will be coming from these customers?

35% of the business was on that price pass-through mechanism. The residuals are on the other mechanism.

And so this last question before I fall back in the queue. So if I look at your EBITDA with water, it's improved both sequentially and YOY as well, which you have explained. But in your presentation, you've given the per litre EBITDA also that has been broadly in the same range, but the improvement in EBITDA has been much more. So what has led to that? I mean, I see that other expenses are significantly reduced.

So, obviously, you know, especially one part of it, you know, we've been able to, you know, handle our finance costs effectively well, year-on-year. Over and about that, obviously, you know, we've been in a position, you know, to better sell our products and also efficient buying, you know, from our suppliers. So, this has been, you know, a combination of various factors which has been led to us.

The main driver for any change in EBITDA or even PAN is the gross margin of our products because this represents practically 75 to 80% of the cost. So in 1% move here or there has an impact on the bottom lines. So that is why one of the main reasons is that we've done better on the gross margins.

Okay. And one thing, was that a rising growth base oil price is beneficial for you or a falling base oil price in the environment is beneficial for you? On a rule of thumb basis, whatever you've seen in the last seven, eight years.

Yeah, I mean, it's a big effort for me to, you know, give you a specific comment because, you know, we don't play on the raw material price. Our focus is to only, you know, customer deliver attitude, whereas, you know, we focus on customers' requirements. And we have a lean inventory of around 40-45 years at the most. So, and whatever buying is there, you know, I mean 80% of the product is really sold, you know. So, really, I mean, unless in a very expensive situation, you know, like crude goes up from $50 to $200 a barrel, or vice versa, it may, but otherwise, you know, if it is rain-bound, it's not a problem.

Thank you. Participants who wish to ask a question may press star and one. The next question is from the line of Mr. Ritesh Polaria from Girik Capital. Please go ahead.

Thank you very much. So, my question is your manufacturing gross margin from your own presentation? 12 quarter low. So the improvement would not be from this gross margin spread. It would be from other expenses. So if you can elaborate on what has led to fall in the other expenses, that would be very helpful for us.

Ready? Hello, let's get married. Come here, let me know what it is. So, if you see quarter on quarter, or if you are going to see year on year, the major improvement has happened on other expenses which is reduced from 52 crores in the 31, 12, 24 to 37 crores this year. Even finance cost has slightly improved. Employee cost, employee cost is Employee cost has gone up, but the major improvement is in account of other expenses, where the major component would be free.

And where do we see freight now? Is it stable or again it's inching up from this geopolitical situation?

No, but currently the freight rates are pretty stable and there is no such unexpected hike that we experienced, you know, previous quarters. And just to add, you know, the gross margin in quarter 3, you know, In numbers terms, you know, on a standalone basis, for example, you know, has improved from 18 crores in FY25, sorry, 17 crores in FY25 quarter 3 to 36.3 crores in FY26 quarter 3. So, obviously, there has been an increase in the overall performance of the company. So, it's just not only, you know, the expense reduction, but obviously increasing on the performance as well.

Yeah, but your total gross margin is about 12 quarter low. In fact, if we see from IPO times, it used to be hovering at 10,000. 10,000 rupees per kilo liter. Now, it's about 7,200. So, is it because of the, you know, range about oil prices, or is there any other reason, like, increased competition, or anything, you can elaborate on that?

Yeah, I mean, if you see the free IQ, around IQ, obviously these are all COVID numbers and all that stuff, you know. But, you know, post and if you see last two years, you know, majority of chemicals, specialty chemicals, I mean, across the industry, there has been, you know, revision in the profitability, quarter and quarter, I mean, you know, part of the same cycle. But we are trying, we tried to level this, you know, to maneuver around and, you know, ensure that, you know, the margins of the companies are protected and, you know, and impacts have now been started improving. If you see, last three quarters, compared to previous years, our profitability has increased. Our work margin also has substantially increased.

Oh, sir, if you can guide us on current ruling white oil prices and where do you see it is going?

So, can you repeat your question? You are asking about ruling?

If you can comment on the current ruling white oil prices during the month of January and where do you see it going?

January. So, I mean, it's ranging around 70,000 to 70,000, 70,000, sorry, around 70,000 to 80,000 rupees per metric time. Okay. And we anticipate the price to be, you know, little bit going up, I mean, based on the raw material increase and the forest increase.

Also, if you can comment on your CapEx, I think there is some delay from the whatever you envisage in the IP, or is it on time frame, if you can quickly take us through that.

No, no, no, delay in the CapEx?

I think in the IPO, whatever, their plants, is there any delay or all your capital expenses?

All done. All the money has been expended, and all the capex has been put into place, all the other objects have been met.

Okay, so 6 lakh litre is your, now, 6 lakh litre is your capacity, which will be there for some time now, right?

In the C plant, yes.

Okay, and what will be the utilization for the Sharjah?

Sharjah is currently around 70-72%.

Sir, India has about almost optimum utilization, but Sharjah is a bit low. Is there any analysis of this?

So, Sharjah is basically a new plant. I mean, it got operationalized sometime in 2017 or 2018. Okay. Now, as I said, I had explained. Getting onboarded with these marquee names or the big players takes nothing less than six to seven years. So that process is on. Second is, even we at the raw material supplies for Charja are also in the process of being set up. So it will take another two, two and a half years for Charja to come online or close to the 90-95% listing. Till then, this is the normal course of business. The customer accreditation is admin. I mean, accreditation by the customers is admin, and the raw material lines are being set up.

Sure, sir. Also, if you, is there any other expansion plans you are currently going through, or right now it's a status quo?

It's difficult for us to command, but obviously, as you have seen during the board meeting, obviously the resolutions are now available publicly, we are going to purchase some additional piece of land in both our facilities, you know, for expansion. So, maybe we'll be, you know, in a position to give you more clarity in maybe a quarter to come as well, with the amount of expansion planned and the quantity and the value of capex land.

And in the CapEx, we will have the regular maintenance CapEx, debottling CapEx, that will happen, and some additional tanks have been put up, so I mean, storage.

No, but the new CapEx will definitely be, you know, coming by, by, by, maybe, the end of this year, or even next year, at the moment.

Sure, and final last question, what's the status of this Vardwan port project for you? There was like a non-minding MOU, but if you can give us some idea what's happening on that side.

See, the tenders have still not been floated, you know, by the government as the act. So, we are pursuing them, and as soon as we have some information which we need to pass on to our shareholders, definitely we'll be doing so.

And what kind of investments would be that? Is it for the chemical storage side or is it from your own or just existing operation side?

It would be a combination of both.

Okay.

Yeah. That's all from my side. Thank you very much. Thank you.

Thank you. The next question is from the line of Mr. Bhavesh Patel from Patel Investments. Please go ahead.

Hi, thanks for the opportunity and congratulations on great sale of numbers. The turnaround is visible and hoping for better numbers going ahead. Also felt great to win the dividend of 75%. I appreciate especially the comment in terms of continuity of quarterly conference call based on the input in last call. So, thank you, Ashleigh By on that. And I like the details provided by both Ashleigh By as well as Indrajit. I have following a couple of questions. Number one, our company reported record-breaking revenue this quarter. So, congratulations on that. Just the manufacturing gross margin spread, which is INR per kiloliter, contracted from 8662 to 7271. Can you please explain this and do we expect this situation to be continued?

This is basically an impact of the raw material prices also, and the... The fact that what Ashteshwar mentioned that FMCG and Parma are with our regular customers, we've not been able to get the prices which we were getting earlier. So these are the main reasons why the gross margin has been slightly impacted. Going forward, yes, the whole of this year we've been getting in excess of 7.5 rupees per litre. Going forward, we would like it to be close to 8, but it should stay around 7.8, 7.9 rupees per litre.

All right. Thank you, Indrajit, on that. The next question is, the board, the meeting came out, right, in terms of minutes. It said, approve the purchase of 453 decimals of land adjacent to your current factory. Now, I really don't understand what is this 453 decimals. Is it in terms of, like, you know, acres or square meters? And where have you purchased this land? At Taloja, Silvasa, I mean, which place?

Thank you. These are plants being purchased at most of our units at Silvasa and Taloja, adjacent to our existing factory. Now, as regards to decimals, we'll get back to you during the course of this call itself. What does decimals mean? I don't know if it's gultas or 0.48 acres. I'll just get back to you on that.

Yes, please, that will be appreciated. So, we are saying we are buying at both the lands, both the plants in terms of the land for expansion. Now, I know a case where I mentioned about strategic plants for the timeline as well as amount for the further capacity addition, but my question is without the upcoming capacity expansion with the land that we purchase, are we still continuing with our increasing volume by 10-15% over next to 3%. Good morning, everyone.

Next one and a half to two years, we will definitely be increasing our volumes quarter and quarter, even without the existing land.

Perfect, perfect. Thank you.

The next question... Final question. In fact, I really appreciate the way you and as well as promoters picked up at around all-time low price of $120, onwards all the way up to $155. Now, are you still looking at increasing your stake or it was just to support and give confidence to all of us?

No, no, no. This is skin in the game, sir. The promoter sees... The, the, the, the potential of the company to take it further.

Perfect, perfect. No, really appreciate and, and that's, that's a great thing, giving us confidence to be in together for longer period. So, appreciate all the very best and thank you. Once again, Achleh Kvai as well as Inderji.

Thank you.

Thank you. The next question is from the line of Mr. Raheel S. from Sapphire Capitals. Please go ahead.

Hi, good morning. Can you hear me? So, firstly, there's the other segment of the lubricants and the... PIO, what is the outlook there? I mean, what is the current market scenario there? You said transformer oil is not doing as well as expected in the market. Any reason for that?

No, I never said transformer oil is not doing well in the market. I told there are delinquencies in debt collection in terms of the transformer business because of the power sector it is associated with. So, and for the lubricant, obviously, you know, it is growing at a stable pace. I mean, the development of EV, obviously, ultimately, lubricant demand, you know, obviously, would come down over the years, but for at least for inertial lubricant, obviously, the demand keep on rising with increasing energy.

Okay. Just to clarify what I said, my mentor is that transformer oil is a growing segment. With the increase in electrification, with the electricity around. It is something which lost a lot of working capital because of the debtors.

Okay, sir. And you said the other expenses were, you know, much lower in quarter as a good time, but the major component which led to that was the changes in practice, correct, which you say are pretty stable as of now. But let's say they turn volatile given the key operational condition. So how do you still expect to, you know, maintain or, you know, improve your cost margin?

See, post this issue, you know, we have been, you know, in a position to pass on an increase in freight rates to our customers. And currently, we are doing lots of shipments on FOB, so freight is being arranged by the customers, you know. This is helped us in, you know, navigating the freight, sudden freight rates, high freight spending, you know, going forward.

You have that sort of arrangement with all your customers?

Majority of the customers. I cannot say all the customers, but majority of the customers.

Okay, so by and large you will be able to, you know, keep your gross margins at this range of double digits at least. Can we expect that from the next quarter itself, from quarter 4?

We are very optimistic about it.

Okay, and finally, sir, if you can guide on the revenue front, any specific guidance you have, or what do you expect, like a growth target for the next two years, you expect to achieve?

Our annual budgeting for the next year is on the west, this is getting a capillary, so hopefully, even next month, it will be easier to give you much more clarity on, you know, who is the guidance number for the year coming ahead.

Okay, sir, thank you.

Thank you. The next question is from the line of Mr. Prateek Shah from Investing Alpha. Please go ahead.

Hello. Yeah, hi, good morning, sir. Thank you for the opportunity. Sir, my first question is, the PHPO continues to be the largest contributor to the finished goods revenue. So, how should we think about the growth trajectory at this segment, you know, over the medium terms?

The FMCG industry and the HCO is a combination.

We are depending on our customers, you know, to grow. That's a very basic line. But, obviously, the FMCG industry, obviously, has not been growing so well over the last two years. But, obviously, with the liquidity in the system, we have increased. Hello? Can you hear me?

Yes, we can hear you.

Okay. Yeah, so with the GFC reforms that has been there in the country, you know, by the honorable prime minister, we are very hopeful that FMCG and the consumption demand, you know, specifically in the rural areas and the urban areas will start coming up, you know, from these causes. We are very hopeful and with the discussions that we have with our customers, you know, they are also very optimistic that things will turn around. Earlier than expected. So, we are very hopeful that the PHPU and the product industry will continue growing as a way in the near future in at least a high single digit. Plus, we are also dependent on our efforts for our PHPU business as well. So, not only on domestic front but also on export front, we are anticipating to increase our revenues from our overseas customers.

Okay, so, are we seeing a higher growth, you know, growth from existing customer itself or any incremental contribution from newer accounts or any specific geographies that we are targeting?

See, we, it's a competition of both the things. I mean, obviously, our existing customers, you know, are showing some growth, plus we are, you know, penetrating with our existing customers. So, with some of our multinational companies, currently, we are supplying to India market. Now, we are supplying, you know, just multinational customers to our overseas market as well. So, that's why we are penetrating with these customers and, you know, growing internally.

Okay. So, one last question. So, exports now form a meaningful share of our overall revenue. So, which regions are you currently driving this growth?

What was your question? Municipal hitters are about 45%. Overseas sales is about 45% of total turnover.

Right. So, I'm just asking, like, which regions are currently driving this growth?

Obviously, it is Asia Pacific and some specific countries, Africa, which are driving this growth.

Okay, and should we expect the export mix to remain broadly stable, or do you see certain markets getting faster over the next couple of years?

See, obviously, with the announcement of deal, you know, coming forward with the U.S., obviously, we may anticipate... Thank you.

The next question is from the line of Mr. Vivek Gupta from Star Investments. Please go ahead.

Hello, am I audible?

Yeah, hi sir. So the working capital level appears elevated in recent periods. Is this largely driven by business growth and inventory planning?

We had a general increase about 3-4 days in inventory and about 4-5 days in retrievables. But in the same breath, what was happening earlier was my creditors levels were coming down. This year, we've been able to keep it at normal. So, if I take all that, my cash conversion cycle this quarter is slightly better than the previous quarter. And we expect it to be around the same levels as this quarter.

Okay, so, like, should we expect working capital intensity to moderate as volume stabilise?

No, so, just to answer your question specifically, we are not in that game where we stock inventories. We, we, among the peers, we have the least amount of inventories, hence there is no impact of inventory gain or inventory loss. We are not very high on the transformer business, so my debtors will still stay within that 65-70 days, so I don't see any increase in the working capital with the increase in turnover, it will stay around the same days.

Okay, okay.

Sir, are they, like you cater to both the large FMCG players and broad customer base. So, like how do you, you know, balance scale customers versus the diversification?

Obviously, there are challenges in place, you know, to take care of our small customers and large-sized customers as well. Obviously, you know, with international clients, the buying is more, you know, the buying is more specific, you know. There are budgeting in place, you know, there are quarterly forecasting in place, you know, which helps us in planning better. This way, you know, it's easier for us, you know, to penetrate with these customers and grow with the customers.

Okay, sir, like just a follow-up on this, like does onboarding large

customers typically translates into the multi-product opportunities over time?

Yes, it does.

Okay, okay. Thank you.

Thank you. The next question is from the line of Mr. Rajesh Agarwal from Mani Or. Please go ahead.

My question is, is the business, sequentially we have not done so well, quarterly we have done well, is the business seasonal in nature, that is the first question.

There's a bit of cyclical impact.

A little bit of cyclical impact. I mean, if you see our revenue, quarter and quarter, it is primarily, you know, range-mort. I mean, there's not a huge volatility like, say, 500 crores in one quarter and 1,000 crores in another quarter. It's not like that. It's still range-mort, but yes, I mean, post-run school, I mean, during months in the business is a little bit low, but I mean, quarter three and quarter four are better performing quarters for us. It's not a great deal. We are looking for a...

And the next question, is the demand from SMCG for the cream products like white oil, oil, or personal products, that is a good demand rather? Because I was reading a report by Nehresisnti that are our products using for hair cream and cosmetics?

So what is your question?

My question is, is our product being used for hair cream, main products, and cosmetic products?

I think the application of our white ointments is across various industries. For cosmetics, in the series, it's used in manufacturing of creams, lotions, and stuff like that, in pharmaceutical industry, it's used in manufacturing of your creams, ointments, and so on, and also, you know, like, for example, say, various manufacturers, like, say, Tiger or Big Saver, and so on. This is an application for products there.

So how is the demand holding there? Are you seeing good demand from there?

I mean, it's not a healthy demand, but demand is at least better than last year.

That's true.

That's true. That's true.

And going forward, you feel the demand will come from there? That's correct, no?

Yes, we are anticipating demand of things happening just as highlighted in our previous sessions. Okay.

Thank you, sir. That's it.

Thank you. For a reminder, to all the participants who wish to ask a question, you may press star and 1 at this time. The next question is from the line of Mr. Rohit from iThought TMS. Please go ahead.

No, no, no. Very audible. I just wanted to understand what is the peak that we can do from our current capacity of 6 lakh kilolitres?

What is the peak? Yeah, I'll say yes. So 600 kilolitres, there is another... 30% of 2,25,000 KL which can be increased when the Sharjah plant comes on the stream and becomes close to 100%. So that is the highest we can do right now. With the existing installed capacity. So that's about 60,000 kL.

Are you saying 6,60,000 is what you can do at peak? I mean, if you can use...

No, not 6,60,000. No, no, no, no. 5,000,000. 5,000,000 is the total installed capacity. So, another 30% increase, another 30% increase, so 60,000 will come up by the next two years or so.

In terms of revenue, sir, in terms of revenue, how should we look at it? I know prices are fluctuating, but generally, as a, maybe, at current prices, what can we do as a peak revenue?

7,800 rupees per liter, 7,800 rupees or 7,500 rupees per kilo liter.

Okay, so, okay, so, got it. And hence, maybe you're looking at expanding the capacity. And on this exports, so, why exports are a big contributor in terms of revenue? But I also wanted to just check, like, over the last 3-4 years, we've been, now, range-bound around that 140-150 crores. For this year, we'll probably get around 170-180 crores. Uh, but in exports like what is the. I mean, what do you think can be the potential? Can this be like 60-70% of revenues, let's say 4 years out, or it will be more steady and the share of revenues will be around these levels only?

So, we will probably expose to grow up by another 5-10%. It will not be 60-70% of total revenues. It could be 50-55%. That's what we see in the medium term.

And are there better margins and better, I mean, capital-wise, they are better or they are similar?

I think slightly better. Exports kind of slightly better margins.

And working capital also is similar, sir, in terms of your receivables, etc.

Yeah, yeah, yeah. Receivers around 60 odd days. But exports in working capital is slightly better because we work on a lot of advance and against LCs. So debtors are slightly better managed over there.

Okay, last question. I mean, in terms of your product profile, I mean, is there anything that you're doing to sort of improve your profile or differentiate, let's say, maybe only very specific formulations for a specific customer or a specific suite of products? Is there something that you're doing there or you may want to talk about something on that line?

Yeah, I mean, definitely we are, you know, in close interaction with a few of our multinational customers, and we are accumulating a specific product for them, but these are still under R&D trials, because of the NDA, it's difficult for me to, you know, give more further information, but yes, there are, you know, some new products which are being worked with the customers.

Okay. And at this point of time, what portion of revenue would be such products or?

Sir, I mean, because the new products are under development, right, so there will be no such revenue generated as opposed to from this product.

Okay. So, okay. What I wanted to understand was that, I mean, typically if the products are differentiated or there is a very lot of... R&D that we have done with the customer and we are closely sort of tied in with them, then it will be, then it will be probably the sole supplier or one of the sole suppliers or one of the key suppliers for them. Right now, do we have such revenue in the system? Like, what will be the share of them?

Sir, there are a few products here where we are sole suppliers, you know, to certain specific customers. The revenue, I mean, in the overall view of things would be far minimum, but, I mean, if you ask on the XMCG point of view, obviously, you know, with some specific product would be in the range of 75% of the total revenue on the PHCO products.

Thank you very much, and this is all I have. Thank you.

Thank you. Ladies and gentlemen, that was the last question. I would now like to hand the conference over to Ms. Ayushi Gupta for closing comments.

I would like to thank the management for taking the time off for the conference call today, and also thank all the participants. If you have any queries, please feel free to contact us. We are MESG In-Time Private Limited, Investor Relations Advisors for Ganda Royal Refinery, India Limited. Thank you so much.

On behalf of Gandhar Oil Refinery, India Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lives.