As India’s industrial landscape accelerates under the twin engines of Make in India and massive infrastructure investments, the demand for high-performance lubricants and specialty oils is surging. In this evolving ecosystem, Sundrex Oil Company — a Kolkata-based manufacturer is entering the capital markets with an IPO that offers investors a window into one of the most quietly expanding B2B industries in India.
Sundrex Oil represents the intersection of traditional manufacturing discipline and modern sustainability mandates. The company’s integration into the Extended Producer Responsibility (EPR) framework through its subsidiary Ecolixir Greentech, its robust in-house production setup, and its strong foothold in the industrial lubricants segment position it uniquely among emerging small-cap industrial players.
By reading the Sundrex Oil IPO review, you will learn how a mid-sized lubricant company generates revenue and protects margins amid volatile raw material prices:
Table of Contents
Sundrex Oil IPO Review: Business Overview
Founded in 2010 by Mr. Mahesh Sonthalia, Sundrex Oil Company began as a public limited enterprise serving niche industrial lubrication needs in Eastern India. The company is headquartered in Kolkata, West Bengal, and operates through a manufacturing plant in Howrah. Over the last decade, the company has evolved from a regional player to a nationwide supplier of industrial and automotive lubricants, greases, transformer oils, and specialty products.
Group Structure:
- OPRS Enterprises – Wholly-owned subsidiary engaged in distributorship of MNC brands and industrial retail distribution.
- Ecolixir Greentech – Newly incorporated subsidiary focused on oil re-refining and EPR compliance, supporting sustainable production through recycling of used lubricants.
With these arms, Sundrex has vertically integrated both forward (distribution) and backward (base oil re-refining) operations — a move that not only reduces dependency but also creates operational synergy.
Sundrex Oil Business Model Analysis
At its core, Sundrex Oil operates as a diversified lubricant manufacturer and B2B supplier with an emphasis on scalability, integration, and customization. Its operations can be divided into three primary business segments:
- Industrial Lubricants – The backbone of the company’s operations, generating nearly 40% of revenue, serving machinery, hydraulic systems, and transmission applications.
- Automotive Lubricants – Catering to B2C and fleet markets; currently contributing a small share but positioned for steady growth alongside vehicle penetration.
- Contract Manufacturing & Private Labeling – Toll blending and customized production services for third-party brands.
Revenue Mix (FY 2025 consolidated):
- B2B Revenue: ~99%
- B2C Revenue: ~1%
- PSU Clients: 12% of total revenue
- Private Sector Clients: 88%
The company’s fully equipped manufacturing plant (capacity: 100 KL/day white oil, 60 KL/day lubricants, 9 MT/day grease) and in-house QC laboratory (50+ instruments) allow full control over production quality and turnaround time. Operating at only 45–65% capacity utilization, the firm has significant headroom for revenue growth without near-term capex needs.
Contract Manufacturing Edge: Through its private label and toll blending operations, Sundrex captures value from other brands that lack in-house blending or packaging capacity. This segment contributes around 3.5–4% of annual revenues, improving plant utilization and diversifying client exposure.
Geographical and Logistical Strength: Located near Haldia Refinery (IOCL) and HPCL Lubricants Plant, and within 30 km of Kolkata Port, the company enjoys exceptionally low logistics costs — base oil freight under INR 0.80/L, compared to INR 6–7/L for competitors from western or southern India.
Sundrex Oil Revenue Streams Analysis
Product-wise Contribution:
| Product | Revenue (INR Crore) | % of Revenue |
|---|---|---|
| Industrial Lubricants | 21.53 | 32.04 |
| White Oil / LLP | 24.01 | 35.72 |
| Metal Working Fluids | 5.20 | 7.74 |
| Grease | 2.75 | 4.09 |
| Transformer Oil | 1.46 | 2.16 |
| Automotive Lubricants | 0.46 | 0.68 |
| Contract Manufacturing | 1.94 | 2.89 |
| Subsidiary Income | 9.85 | 14.66 |
Revenue Diversification Trends:
- Top 10 customer concentration has declined from 52.1% in FY23 to 41.7% in FY25, demonstrating successful risk mitigation.
- Customer base expanded from 391 (FY23) to 532 (FY25), reflecting robust new client acquisition.
- Exports to UAE and Bangladesh are still modest (<1%) but represent a high-growth frontier for FY26–27, supported by the company’s port proximity and product customisation capabilities.
Capacity Utilisation and Efficiency:
- FY23: ~52%
- FY24: ~58.5%
- Q1 FY26 (annualized): ~65.3%
This rising utilization trend indicates growing operational efficiency and market traction, with ample unused capacity to support scaling without significant capex.
Sales Channel Advantage: The direct sales model eliminates intermediaries, allowing for competitive pricing, better margins, and closer client relationships — a rarity among small and mid-sized lubricant firms.
Key Takeaway: Sundrex Oil business model is built around control and customization — control over production and quality, and customisation through private labelling and contract blending. This dual approach allows it to serve both bulk industrial clients and niche formulations simultaneously, thereby balancing volume growth with profitability.
Sundrex Oil IPO Review: Financial Performance & Key Metrics
Sundrex’s top line grew impressively from INR 27.49 crore in FY 2023 to INR 48.31 crore in FY 2024, and further to INR 67.20 crore in FY 2025, registering a two-year CAGR of 57%. For the three-month stub period ended 30 June 2025, the company reported revenue of INR 18.70 crore, indicating continued momentum into FY26.
Profitability
Operating EBITDA has more than quadrupled in just two years:
- FY 2023: INR 1.57 crore (EBITDA margin 5.73%)
- FY 2024: INR 4.13 crore (8.57%)
- FY 2025: INR 7.05 crore (10.49%)
- Q1 FY 2026: INR 2.60 crore (13.9%)
This sharp margin expansion highlights improving cost discipline, raw material optimisation, and a higher-margin product mix (notably white oils and contract manufacturing).
Net Profit and Margins
The company’s PAT surged from INR 0.39 crore in FY 2023 to INR 2.56 crore in FY 2024, and further to INR 5.44 crore in FY 2025, translating into a PAT margin expansion from 1.45% to 8.1%. For Q1 FY26, PAT stood at INR 1.94 crore, maintaining strong profitability even amid raw material fluctuations.
Return Ratios
| Metric | FY 2023 | FY 2024 | FY 2025 | Q1 FY26 |
|---|---|---|---|---|
| ROE (%) | 28.68 | 64.83 | 35.63 | 11.27 |
| ROCE (%) | 13.28 | 27.91 | 27.03 | 8.78 |
| Debt-Equity | 7.04 | 3.43 | 1.14 | 0.99 |
| DSCR | 0.90 | 1.69 | 3.13 | 1.48 |
These ratios clearly indicate rapid deleveraging, improved efficiency, and sustainable return generation — the hallmarks of a company transitioning from survival to scalability.
Sundrex Oil IPO Analysis: Sector & Market Opportunity
Sundrex operates in a sector that is not only expanding but also evolving toward sustainability and regulatory compliance — two forces that define future competitiveness in lubricants manufacturing.
a) Industrial Lubricants Market – Expanding at a Healthy Pace
According to industry research, the Indian Industrial Lubricants Market was valued at USD 7.25 billion (INR 64,490 crore) in 2024 and is projected to reach USD 9.22 billion (~INR 82,586 crore) by 2030, growing at a CAGR of 4.28%.
This growth is being driven by:
- Rapid industrialisation and manufacturing expansion.
- Increased mechanisation in sectors like steel, power, and infrastructure.
- Government’s Make in India and National Infrastructure Pipeline (NIP) projects.
Lubricants are non-discretionary consumables for machinery, meaning demand scales directly with industrial output — a key macro tailwind for Sundrex.
b) Automotive Lubricants Market
India’s automotive lubricants market is projected to rise from 100 million tons in 2024 to 150 million tons by 2029, at a CAGR of 2%. While EV adoption poses a gradual threat to engine oil demand, new categories such as EV coolants, gear fluids, and dielectric lubricants will create fresh revenue avenues. Sundrex’s R&D and blending infrastructure position it well to tap these emerging product categories.
c) Regulatory Tailwind – The EPR Framework
In April 2024, India’s Central Pollution Control Board (CPCB) launched the EPR (Extended Producer Responsibility) portal for used oil management. Under this framework, oil producers must recycle a fixed percentage of previously sold oil — rising from 5% in FY25 to 50% by FY31.
Sundrex’s subsidiary Ecolixir Greentech has been established precisely to comply with and capitalise on this framework by re-refining used oil into high-grade base oil. This not only ensures regulatory compliance but also creates a new cost-effective, sustainable feedstock source, enhancing long-term margins and ESG credentials.
d) Key Market Insight
Together, industrial and automotive segments form a ~INR 65,000 crore market in India, with increasing emphasis on energy efficiency, quality consistency, and sustainability. Sundrex’s integrated operations and EPR compliance readiness give it an edge over traditional lubricant blenders that rely on third-party sourcing or imports.
Sundrex Oil IPO Details & Valuation Snapshot
Sundrex Oil Company Limited is set to debut on the NSE EMERGE platform, offering investors exposure to India’s expanding lubricants and specialty oils sector through a company with integrated operations, strong profitability, and sustainability credentials.
Issue Structure
| Particular | Details |
|---|---|
| IPO Dates | 22 – 24 December 2025 |
| Price Band | INR 81 – 86 per share |
| Face Value | INR 10 per share |
| Fresh Issue Size | 37,50,400 shares (INR 30.38 – 32.25 crore) |
| Offer for Sale (OFS) | Nil |
| Total Issue Size | 37,50,400 shares (INR 30.38 – 32.25 crore) |
| Minimum Bid | 3,200 shares (INR 2,75,200) |
| Retail Allocation | 35% |
| Listing Venue | NSE EMERGE |
| Lead Manager | Affinity Global Capital Market |
| Registrar | Cameo Corporate Services |
Valuation Metrics
| Metric | FY23 | FY24 | FY25 | Remarks |
|---|---|---|---|---|
| EPS (INR) | 1.06 | 6.81 | 8.12 | Strong CAGR in earnings |
| P/E Ratio | — | — | 9.98 – 10.59x | Attractive vs. industry average (~15–18x) |
| ROE (%) | 28.68 | 64.83 | 35.63 | Indicates capital efficiency |
| ROCE (%) | 13.28 | 27.91 | 27.03 | Consistent operating efficiency |
| Debt-Equity | 7.04 | 3.43 | 1.14 | Significantly reduced leverage |
| EBITDA Margin (%) | 5.73 | 8.57 | 10.49 | Demonstrates margin expansion |
Final Words
Sundrex Oil stands out as a disciplined, operationally integrated player in an industry that rewards efficiency and compliance. Its threefold evolution — from a trader to manufacturer, from manufacturer to brand, and now from brand to sustainable recycler — signals a company in the midst of a structural upgrade.
Investment Merits
- Strong Financial Momentum: 57% revenue CAGR (FY23–25) with margin expansion and debt reduction.
- Integrated and Scalable Business Model: In-house blending, testing, packaging, and logistics give control and cost leadership.
- Ecolixir Subsidiary Synergy: Long-term ESG-aligned backward integration supporting sustainability and cost reduction.
- Reasonable Valuation: At ~10x FY25 earnings, the IPO offers value relative to industry peers.
- Headroom for Growth: Capacity utilisation at ~65% allows organic scaling without near-term capex.
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