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.

• 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, expanding distribution to 40,000 outlets and adding 700 Rural Service Express centers.

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

• Industrial business added over 600 new customers, including in mining and EV segments.

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

• 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.

• Raw material cost increases expected to impact results from Q2 onwards due to inventory cycles.

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

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