Castrol India: Revenue Up 27%, EBITDA Down 19%
Castrol India's revenue in July–September 2026 was ₹1,735 crore, up 27% on a year earlier. But its EBITDA fell 19% to ₹262 crore and profit after tax fell to ₹176 crore from ₹228 crore. The company says it faced "a sharp rise in raw material costs and adverse currency movements", and that price increases taken early in the year only "helped moderate the impact on margins". For a brand that leans on pricing, margin is the number to watch.
The quarter in numbers
| ₹ crore | 3Q 2026 (Jul–Sep) | 2Q 2026 (Apr–Jun) | 3Q 2025 (Jul–Sep) | Source |
|---|---|---|---|---|
| Revenue from operations | 1,735 | 1,871 | 1,363 | [R] |
| Profit before tax | 243 | 476 | 308 | [R] |
| Profit after tax | 176 | 348 | 228 | [R] |
| Pre-tax margin (our arithmetic) | 14.0% | 25.4% | 22.6% | [R] |
EBITDA for the quarter was ₹262 crore, down 19%, about 15.1% of revenue (our arithmetic) ([R]).
For the nine months to September, revenue rose 20% to ₹5,151 crore and EBITDA rose 11% to ₹1,086 crore ([R]). So the first half of the year was strong, and the damage was concentrated in the third quarter: pre-tax profit almost halved from the June quarter on revenue 7% lower (our arithmetic).
What the company says
- The press release headline: "High double-digit commodity cost inflation addressed with pricing actions" ([R]).
- Managing Director Saugata Basuray: "Pricing actions taken early in the year helped moderate the impact on margins" ([R]).
- CFO Mrinalini Srinivasan: "we expect the operating environment to remain volatile and inflationary" ([R]).
The company does not say how much of the revenue growth was price and how much was volume, apart from the industrial business, which "delivered another quarter of double-digit volume growth" ([R]).
Moat and margin
Focus moat: brand and distribution. Castrol says it reaches about 1,67,000 outlets, 46,000 of them rural, and has over 870 Castrol Auto Service centres and 37,000 independent bike workshops ([R]). Our reading: reach and brand are what a lubricants company relies on to raise prices when input costs rise.
Margin. This quarter shows the limits of that power. Revenue grew 27% and the company says pricing actions were taken, yet pre-tax margin fell to 14.0% from 22.6% a year earlier (our arithmetic). Our reading: price increases did not fully offset the cost rise. The company itself says they only "helped moderate the impact on margins".
MoatSCORE: 5.08 (AMBER+, first pass) on the Moat Screener ([MS]).
New auditor. The board approved the appointment of Price Waterhouse Chartered Accountants LLP as statutory auditor for five years from the 49th AGM in 2027, "in place of the retiring Statutory Auditors, M/s Deloitte Haskins & Sells LLP" ([A]). The company gives the reason as mandatory auditor rotation under the Companies Act: Deloitte will continue until the 49th AGM, completing its second consecutive five-year term ([A]). The appointment is subject to shareholders' approval at that AGM.
The bear case
- Margins fell sharply: pre-tax margin of 14.0% against 22.6% a year ago and 25.4% in the June quarter (our arithmetic).
- Management expects a volatile and inflationary environment ([R]).
- No volume figure for the whole company, so the 27% revenue growth cannot be split into price and volume.
- Profit fell 23% year on year (our arithmetic, ₹176 crore against ₹228 crore) despite the revenue growth.
The case for
- Nine-month EBITDA is still up 11% ([R]).
- Distribution is expanding: about 1,67,000 outlets, with the industrial business adding 700 customers ([R]).
- Industrial volumes grew at double digits ([R]).
What to watch
- The pre-tax margin in October–December, against 14.0% in this quarter.
- Any statement of volume growth for the whole company.
- Any further price increases the company announces.
Sources
- [R] Castrol India, results and press release, quarter ended 30 Sep 2026 (NSE)
- [A] Castrol India, statutory-auditor appointment (NSE)
- [MS] Moat & Margin, Moat Screener and How MoatSCORE works
Educational research, not investment advice. Every figure above is drawn from Castrol India's own filings, read from the primary documents on 25 October 2026; derived figures are our arithmetic, labelled as such. MoatSCORE read live from the Moat Screener on 25 October 2026. No buy/sell recommendations, no price targets, no share prices. Moat & Margin is not a SEBI-registered Research Analyst or Investment Adviser.
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