Castrol India Limited Earnings Summary — Q4 FY2026
Castrol India Delivers Strong Growth with 9% Revenue Increase and Market Share Gains
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 4 consecutive quarters.
- Revenue of ₹1,871 Cr is 25.0% higher year-on-year.
- Revenue has compounded at 16.6% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹348 Cr is 42.5% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 23.5% annualised across the period.
- Operating margin stands at 26.4% in Q1 FY2027.
- Operating margin expanded by 306 bps year-on-year.
- Over the last two years operating margin has expanded by 334 bps.
- PBT margin is 25.4%.
- Expense growth of 20.0% remained below revenue growth of 25.0%.
- Operating profit of ₹494 Cr is 41.4% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 85/100 (Excellent) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 1,871 | 1,545 | 1,440 | 1,363 | 1,497 | 1,422 | 1,354 | 1,288 | 1,398 | 1,325 |
| Expenses | Improving | 1,377 | 1,216 | 1,072 | 1,040 | 1,147 | 1,115 | 978 | 1,002 | 1,075 | 1,032 |
| Operating Profit | Accelerating | 494 | 329 | 368 | 323 | 350 | 307 | 376 | 286 | 322 | 294 |
| Operating Margin | Improving | 26.4% | 21.3% | 25.6% | 23.7% | 23.4% | 21.6% | 27.8% | 22.2% | 23.1% | 22.2% |
| Other Income | Volatile | 14 | 23 | -9 | 12 | 9 | 32 | 23 | 21 | 20 | 24 |
| Interest | Stable | 2 | 2 | 2 | 2 | 3 | 2 | 3 | 2 | 3 | 2 |
| Depreciation | Improving | 30 | 28 | 24 | 25 | 27 | 25 | 25 | 25 | 26 | 24 |
| Profit Before Tax | Accelerating | 476 | 323 | 332 | 308 | 330 | 313 | 371 | 280 | 314 | 292 |
| Tax | Accelerating | 128 | 81 | 88 | 80 | 86 | 79 | 100 | 73 | 82 | 76 |
| Net Profit | Accelerating | 348 | 242 | 245 | 228 | 244 | 233 | 271 | 207 | 232 | 216 |
| Net Margin | Stable | 18.6% | 15.7% | 17.0% | 16.7% | 16.3% | 16.4% | 20.1% | 16.1% | 16.6% | 16.3% |
Key Takeaways
- Revenue grew 9% year-on-year to ₹1,545 crore, driven by high single-digit volume growth across key segments.
- Rural distribution expanded significantly to 43,000 outlets, with the rural portfolio achieving double-digit growth.
- EBITDA margins remained within the company's guidance band of 21-24%, despite early headwinds from raw material costs and currency volatility.
- Premium brands in urban markets delivered double-digit volume and value growth, anchored by 150,000 total retail touchpoints.
- The industrial business sustained double-digit growth, supported by localized production of new spindle oils and alkaline cleaners.
- Strategic MoU signed with HPCL to explore a re-refined base oil (RRBO) ecosystem, supporting sustainability initiatives.
- Management noted a potential ownership shift as parent company BP agreed to sell a 65% stake in Castrol's global business to Stonepeak by late 2026.
Management Guidance
Management expects a more volatile and inflationary environment due to geopolitical events in the Middle East affecting base oil and packaging costs. They intend to maintain their structural EBITDA margin band of 21-24% through calibrated pricing, cost discipline, and supply chain resilience.
Sentiment Shift
Stable
Strong volume momentum in rural and premium segments is being balanced against emerging raw material cost pressures and currency headwinds.
Outlook
The company remains focused on its 'Protect, Pivot, and Grow' strategy, focusing on rural penetration, EV fluid development with partners like Ather and Tata Motors, and expanding the Castrol Auto Service network.
From the Annual Report (Key Quotes)
“Our rural portfolio continues to grow at high double-digit rate... this scale gives us deep last-mile reach.”
“Towards the end of the quarter, we saw early signs of external headwinds on currency and on raw material costs driven by geo-political events.”
“We have delivered our 12th consecutive quarter of stable revenue and volume growth.”
Official Quarterly Documents
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This summary is AI-generated from Castrol India Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.