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Castrol India Ltd

| Unaudited Financial Results for the Quarter Ended March 31, 2026

Report Source

⬤28th Apr 26

Summary : Castrol India reports strong Q1 results, driven by strategic execution and market expansion, despite external volatility.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Cost of raw and packing materials consumed: ₹766.28 Crore.
  2. Purchases of traded goods: ₹74.07 Crore.
  3. Changes in inventories: (₹53.12) Crore.
  4. Employee benefits expense: ₹90.01 Crore.
  5. Finance costs: ₹1.87 Crore.
  6. Depreciation and amortization expense: ₹27.67 Crore.
  7. Other expenses: ₹338.69 Crore.
  8. Total Expenses: ₹1,245.47 Crore.
  9. Exceptional item (New Labour Codes): ₹22.53 Crore.
  10. Revenue from operations: ₹1,545.24 Crore (1Q 2026), up 9% YoY.
  11. Other income: ₹23.34 Crore.
  12. Equity Share Capital: ₹494.56 Crore.
  13. Other Equity: ₹1,405.74 Crore (as at 31.12.25).
  14. bp plc agreed to sell 65% shareholding in Castrol's global lubricants business.
  15. This transaction has no impact on CIL's Q1 2026 financial results.
  16. Unaudited financial results for Castrol India Limited (the Company).
  17. Does not explicitly state standalone or consolidated.

Corporate Overview

  1. India, with expanded reach into rural and urban markets.
  2. National distribution footprint across general trade, modern trade, e-commerce.
  3. Early signs of external headwinds on currency.
  4. Rising raw material costs driven by geo-political events.
  5. Increasingly volatile and inflationary external environment.
  6. Part of the bp group.
  7. MoU with HPCL to explore re-refined base oil ecosystem.
  8. Leading lubricant manufacturer, part of bp group.
  9. Focus on evolving consumer needs and mobility trends.
  10. Offers wide range of engine oils, transmission fluids, industrial lubricants.
  11. Operates three blending plants and wide distribution network.
  12. Confident in strong momentum and growth strategy execution.
  13. Positive about market share gains and strategy delivery.
  14. Proactive in positioning business for volatile environment.
  15. Committed to agility, discipline, and long-term growth.
  16. Automotive, mining, machinery, and wind energy sectors.
  17. General trade, modern trade, e-commerce platforms.
  18. Riders, enthusiasts, and mechanics.
  19. Single segment: Lubricants, as per Ind AS - 108 Operating Segment.
  20. Three blending plants.
  21. ~150,000 retail outlets nationwide.
  22. ~800 Castrol Auto Service (CAS) centres.
  23. ~34,000 independent bike workshops, ~13,000 multi-brand workshops.
  24. ~43,000 rural outlets, ~700 Rural Service Express centres.
  25. FastScan (verified mechanic network) grew to 164,000.
  26. Continue to expand distribution.
  27. Invest on premium brands.
  28. Push into mining and EV segments.

Risk Factors

  1. External headwinds: currency, raw material costs.
  2. Volatile, inflationary operating environment.
  3. New Labour Codes' financial obligations.
  4. Global business sale by ultimate holding company.

Key Drivers

  1. Strong Q1 revenue, EBITDA, PAT growth.
  2. Expanded rural distribution, double-digit growth.
  3. Premium brand focus, urban market penetration.
  4. Innovation, localisation, new product launches.

Auditor’s Report

  1. Clean review opinion on unaudited financial results.
  2. Nothing came to attention indicating material misstatement or non-disclosure.

Board Commentary

  1. Final dividend of Rs 5.25 per share for FY25.
  2. Approved by shareholders and paid in April 2026.
  3. Financial impact from New Labour Codes' estimated obligations.
  4. New Labour Codes effective November 21, 2025.
  5. Recognized incremental estimated obligations of Rs 22.53 crore as exceptional item.
  6. Monitoring finalisation of Central/State Rules and clarifications.

Corporate Governance

  1. Audit Committee reviewed the results.

Management Discussion & Analysis

Future Strategy

  1. Continue to execute growth strategy.
  2. Expand distribution and invest on premium brands.
  3. Stay agile and protect business fundamentals.
  4. Balance near-term actions with clear focus on long-term growth.
  5. Proactive positioning for volatile and inflationary environment.

Industry Overview

  1. Growth in rural, urban premium, and industrial segments.
  2. Focused push in the EV segment.

Macroeconomic Outlook

  1. External environment becoming increasingly volatile.
  2. Early signs of external headwinds on currency and raw material costs.

Operational Focus Areas

  1. Expand distribution and invest on premium brands.
  2. Calibrated pricing, cost discipline, and stronger supply resilience.
  3. Monitor finalisation of Central/State Rules for New Labour Codes.

Performance Drivers

  1. Expanded rural India presence, double-digit growth.
  2. Sharpened focus on premium brands in urban markets.
  3. Sustained double-digit growth in industrial business.
  4. National distribution footprint and strong service ecosystem.
  5. Innovation and localisation with new product launches.
  6. High-impact consumer engagement and digital ecosystem.

Risk Control Measures

  1. Proactive positioning for volatility.
  2. Calibrated pricing and cost discipline.
  3. Stronger supply resilience.
  4. Agile and disciplined response to market changes.
  5. Monitoring regulatory changes for New Labour Codes.

Critical Risks

  1. External headwinds on currency and raw material costs.
  2. Volatile and inflationary operating environment.
  3. Potential impact of New Labour Codes on obligations.
Castrol India Ltd (CASTROLIND) Quarterly Report Analysis & Insights | Dhanarthi