Arabian Petroleum Limited — PPTs, 17-06-2025: Investor Presentation

1. Financial Highlights:

Revenue grew 8.93% YoY to ₹285.25 Cr, driven by strong operational performance. EBITDA increased 16.71% to ₹17.39 Cr, improving margins slightly to 6.10%. PAT surged 33.50% to ₹9.08 Cr with PAT margin expanding to 3.18%. Reserves rose 23.79% to ₹47.27 Cr, while non-current liabilities decreased by 17.94%, strengthening the balance sheet. Total assets stood at ₹106.55 Cr. EPS improved 9.47% to ₹9.02.

2. Strategic Initiatives & Growth Drivers:

The company aggressively expanded into the Transformer Oil segment, securing significant orders and venturing into new high-potential markets. It boosted export reach by establishing a wholly owned subsidiary in Dubai (Arzol Petroleum Trading FZE) and added a new warehouse in Pune to improve logistics. Participation in key global trade events like Automechanika Dubai and AAPEX USA supports brand building and market expansion.

3. Business Developments:

Secured landmark orders including from Border Roads Organisation for Bhutan projects and India’s largest PSU steel manufacturer. Won OEM approvals from Daimler Trucks and partnerships in concrete pump manufacturing for first-fill oils. Vendor registrations with Western Railway and government tenders broaden institutional sales, including Indian Army and Air Force supplies. Private label manufacturing deals with Endurance and Jokisch enhance volumes.

4. Market Position & Competitive Advantage:

APL ranks among the top 20 lubricant brands in India with ~0.8% national market share and 3.6% in the metalworking segment. It maintains a diversified product portfolio spanning automotive and industrial lubricants, supported by strong certifications, OEM approvals, and growing export presence. Extensive in-house testing and backward integration improve product quality and cost competitiveness.

5. Investor Implications:

The company demonstrates positive growth potential through product diversification, increasing institutional/government sales, and international expansion. Margin improvement and balance sheet deleveraging add financial stability. Execution risk resides mainly in scaling new segments and global market penetration, but leadership strengthening and strategic partnerships mitigate these risks.