India’s specialty-oil producers showed strong momentum in the first half of 2026, as healthy demand, improved pricing and diversified product portfolios lifted earnings and drew investor interest.
Shares of Gandhar Oil Refinery India, Savita Oil Technologies and Panama Petrochem rose sharply this year, outperforming the broader market. Gandhar’s stock gained 84% year to date, while Savita and Panama Petrochem advanced 74% and 64%, respectively, according to the analysts at Mumbai-based brokerage ICICI Securities. The BSE Sensex declined 10% over the same period.
The rally accelerated last week, when Gandhar shares rose as much as 20% in intraday trading to a 52-week high, supported by trading volumes more than 10 times their average. Savita reached an all-time high, while Panama Petrochem also gained on elevated volume.
The results point to a positive first-half picture for India’s specialty-lubricants segment, compared with conventional automotive and industrial oils. The segment includes food-grade, personal-care and health-care lubricants, as well as performance, transformer, insulating and process oils.
Gandhar reported particularly strong results for the April-June quarter, the first quarter of its 2027 fiscal year. Consolidated revenue rose 91.8% year on year to 17.32 billion rupees (U.S. $181 million), while EBITDA increased 69.4% to 2.84 billion rupees. Net profit climbed nearly sevenfold to 2.06 billion rupees.
The company’s gross-margin spread rose 3.4 times year on year to 28,145 rupees per thousand liters, while sales volumes increased 8% to 132 million liters.
Gandhar attributed the performance to revenue growth and robust margins despite volatile crude prices, geopolitical tensions in the Middle East and intermittent supply-chain disruptions. Management said agile sourcing, inventory management and a favorable product mix helped the company respond to the uncertain external environment.
Its personal care, health care and performance oils business segments remained the main growth engine, benefiting from continued demand from the pharmaceutical, health care and personal-care industries. Performance oils are specialized high-purity functional oils or process oils designed to maximize technical efficiency, chemical stability, or friction reduction in industrial and consumer goods. Demand also improved for Gandhar’s process and insulating oils used by transformer, power and rubber manufacturers. Gandhar said lubricant-segment growth was stable during the quarter.
Savita Oil Technologies, another major Indian producer of specialty petroleum products and lubricating oils, also appears positioned for stronger earnings growth. Petroleum specialty oils account for 73% of the company’s sales, while lubricating oils contribute 26%.
ICICI Securities said Savita’s EBITDA per thousand liters improved 23% in the fiscal year ended March 31, reaching 4,555 rupees per thousand liters, largely due to stronger gross margins. The brokerage expects EBITDA per thousand liters to grow at a 20% compound annual rate through fiscal 2028.
The outlook reflects anticipated price increases for transformer oils and lubricants as higher base-oil and raw-material costs are passed through to customers, as well as better operating leverage from higher volumes. ICICI forecasts Savita’s revenue to grow at a 34% compound annual rate between fiscal 2026 and fiscal 2028, with EBITDA and net profit rising 36% and 37%, respectively.
Panama Petrochem, a producer of white oils and allied petroleum products, benefited from its diversified portfolio serving cosmetics, inks, rubber, textiles, transformer-oil and industrial-lubricant markets. In May, rating agency ICRA reaffirmed the company’s ratings with a stable outlook, citing its established position in white oils, broad customer base and relationships with customers across multiple industries.
Its manufacturing subsidiary in Ras Al Khaimah, United Arab Emirates, gives Panama proximity to base-oil suppliers in the Middle East and access to regional demand.
India’s specialty oil market including white oils for food, pharmaceutical and personal-care uses is forecast to grow from 782,000 tons in 2023 to 1.24 million tons in 2028, according to the country’s market research agency CRISIL. Leading suppliers include Gandhar Oil, Raj Petro, Apar Industries, Savita Oil and Panama Petrochem.
The results point to a positive first-half picture for Indian lubricant producers, though the sources of growth differ by company. Specialty oils, transformer oils, white oils and personal-care-related products are helping insulate producers from slower growth in conventional lubricants, while pricing discipline and supply-chain flexibility are supporting margins.