Castrol India (500870) Q1 2026 earnings summary

Executive summary

• Achieved 12th consecutive quarter of stable revenue and volume growth, with strong performance across rural and urban portfolios, and continued market share gains.

• Achieved over 8% average growth in volume sold in Q1 2026, with strong demand in both consumer and industrial segments.

• Premium brands and industrial business delivered double-digit volume and value growth, supported by innovation and expanded service ecosystem.

• Expanded product portfolio with new launches in auto care and industrial lubricants, and strengthened digital engagement with mechanics and retailers.

• bp announced sale of ~65% stake to Stonepeak, transaction ongoing; no impact on current quarter results.

Financial highlights

• Revenue grew 9% year-over-year to ₹1,545 crore in Q1 2026.

• EBITDA for Q1 2026 was ₹329 crore, up 7% YoY.

• Profit after tax for Q1 2026 was ₹242 crore, up 4% YoY.

• Volume growth was 7%-8% year-over-year for the quarter.

• Earnings per share (EPS) for Q1 2026 was ₹2.45.

Outlook and guidance

• Expect short-term margin volatility due to rising raw material and currency costs, but aim to maintain structural EBITDA margin in the 21%-24% range.

• Pricing actions and cost optimization underway to mitigate inflationary pressures; further price increases possible if volatility persists.

• Focus on innovation, network expansion, and diversification into EV-ready fluids and data centre cooling solutions.

• Rural India and commercial vehicles are key growth drivers, with premiumisation in urban mobility and industrial demand from manufacturing and infrastructure.

• Management plans to maintain growth momentum through calibrated pricing, cost discipline, and supply resilience.