Castrol India (500870) Q1 2026 earnings summary

Executive summary

• Achieved 12th consecutive quarter of stable revenue and volume growth despite macro uncertainty and external headwinds, including Middle East conflict and currency volatility.

• Revenue grew 9% year-over-year to INR 1,545 crores in Q1 FY26, with EBITDA up 7% and profit after tax up 4%.

• Rural portfolio grew at a high double-digit rate, with expanded distribution to 40,000 outlets and 700 new Rural Service Express centers.

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

• Continued market share gains and strong consumer engagement through campaigns, partnerships, and digital initiatives.

Financial highlights

• Revenue from operations: INR 1,545 crore in Q1 2026 vs INR 1,422 crore in Q1 2025 (9% YoY growth).

• EBITDA: INR 329 crore in Q1 2026 vs INR 307 crore in Q1 2025 (7% YoY growth).

• Profit after tax: INR 242 crore in Q1 2026 vs INR 233 crore in Q1 2025 (4% YoY growth).

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

• Gross profit grew by about 11% year-over-year.

Outlook and guidance

• EBITDA margin guidance remains at 21%-24%, with short-term volatility expected due to geopolitical and raw material cost pressures.

• Raw material and currency impacts expected to be more visible from Q2 onwards due to inventory cycles.

• Pricing actions and cost optimization measures are in place to protect margins.

• Continued focus on expanding distribution and investing in premium brands.