The company’s net profit rose 42.5% year-on-year to ₹347 crore from ₹244 crore in the corresponding quarter last year.
Revenue from operations increased 25% to ₹1,871 crore from ₹1,497 crore.
Profit growth outpaced revenue growth, indicating that stronger operating efficiency and improved margins contributed significantly to the bottom line.
EBITDA margin crosses 32%
Operating performance improved during the quarter, with EBITDA rising 40.8% year-on-year to ₹599.4 crore from ₹425.7 crore.
EBITDA margin expanded to 32.03% from 28.44% a year ago.
The margin expansion suggests Castrol was able to manage costs effectively despite volatility in raw material prices, a key factor for lubricant manufacturers.
For the first half of calendar year 2026, revenue from operations increased 17% year-on-year to ₹3,417 crore, while EBITDA rose 25% to ₹823 crore. Profit after tax increased 24% to ₹590 crore.
Board declares ₹6.25 interim dividend
Castrol India’s board declared an interim dividend of ₹6.25 per equity share of face value ₹5 each for the financial year ending December 31, 2026.
The dividend will be paid within 30 days of declaration, with August 11, 2026 fixed as the record date to determine shareholder eligibility.
Chief Financial Officer Mrinalini Srinivasan said the dividend reflected the company’s confidence in its ability to generate healthy cash flows during a period of transition.
Volume growth drives performance
Managing Director Saugata Basuray said the company delivered another strong quarter, supported by volume growth across its industrial, institutional and consumer businesses.
He said Castrol’s personal mobility brands continued to outperform the broader portfolio, while its global supply chain and diversified vendor base helped maintain supply continuity despite volatility in raw material availability and pricing.
Castrol’s growth strategy has increasingly focused on strengthening distribution reach and expanding its presence beyond traditional automotive lubricants into adjacent auto-care categories.
Distribution network expands
During the quarter, Castrol maintained its national distribution footprint at around 160,000 outlets.
The company expanded its:
- Auto Care portfolio to around 40,000 outlets
- Rural distribution network to around 45,000 outlets
- Rural Service Express network to over 950 centres
Castrol also expanded its synthetic lubricant portfolio with new launches, including:
- Castrol Activ Full Synthetic 10W-30 and 5W-30
- Castrol GTX Full Synthetic 5W-30
- Castrol GTX Full Synthetic 0W-20
The expansion of premium lubricant offerings is aimed at capturing higher-value customers as vehicle owners increasingly shift towards products positioned around better engine performance and longer life.
Inflation and monsoon remain key risks
Looking ahead, Basuray said the company remains cautious about the second half of the year due to inflationary pressures and uneven monsoon conditions.
He said these factors could influence consumer demand in the coming months.
While the June-quarter performance remained strong, management’s commentary highlights that demand trends and input cost movements will remain key factors to watch going forward.
Stock reaction
Castrol India shares ended 0.76% higher at ₹187.25 on the NSE on Tuesday, ahead of the earnings announcement.
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