Mumbai: Castrol India Limited reported a 27% year-on-year increase in revenue from operations to ₹1,735 crore for the third quarter ended September 30, 2026, even as higher raw material costs and adverse currency movements weighed on profitability. The lubricant manufacturer’s profit after tax declined approximately 23% to ₹176 crore from ₹228 crore in the corresponding quarter last year.
The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 19% year-on-year to ₹262 crore, highlighting the pressure on operating margins despite strong revenue growth.
However, Castrol India’s performance over the first nine months of 2026 painted a more encouraging picture, with revenue rising 20% to ₹5,151 crore and EBITDA increasing 11% to ₹1,086 crore.
The Mumbai-based company, listed on the BSE under code 500870 and the NSE under the symbol CASTROLIND, follows a January-to-December financial reporting calendar.
Quarterly Profit Declines Despite Higher Revenue
Castrol India’s third-quarter financial performance reflected a widening gap between revenue growth and profitability, as commodity cost inflation continued to challenge the lubricants industry.
Revenue from operations increased from ₹1,363 crore in the July-September quarter of 2025 to ₹1,735 crore in the corresponding period of 2026, representing growth of approximately 27%.
However, profit before tax declined from ₹308 crore to ₹243 crore, a decrease of approximately 21%. Profit after tax fell from ₹228 crore to ₹176 crore during the same period.
The sequential comparison was also weaker. Revenue declined approximately 7% from ₹1,871 crore in the April-June 2026 quarter, while profit after tax dropped around 49% from ₹348 crore.
The figures underline the challenges facing manufacturers when rising input costs outpace the immediate benefits of higher selling prices. Revenue growth may be moving in the right direction, but margins have encountered a rather less comfortable stretch of road.
Nine-Month Revenue Reaches ₹5,151 Crore
Despite the weaker third quarter, Castrol India maintained positive growth across its major financial indicators for the January-September 2026 period.
Revenue from operations increased to ₹5,151 crore from ₹4,282 crore in the corresponding nine months of 2025, representing growth of approximately 20%.
Profit before tax rose to ₹1,043 crore from ₹950 crore, an increase of nearly 10%, while profit after tax climbed approximately 9% to ₹766 crore from ₹705 crore.
EBITDA increased 11% year-on-year to ₹1,086 crore, supported by pricing measures implemented earlier in the year.
The nine-month results suggest that Castrol’s pricing strategy has helped cushion the impact of inflation over the longer reporting period, although the sharp quarterly profit decline indicates that cost pressures remain significant.
Management Highlights Inflation and Currency Challenges
Commenting on the company’s performance, Saugata Basuray, Managing Director, Castrol India Limited, said:
“In a quarter marked by a sharp rise in raw material costs and adverse currency movements, Castrol delivered a resilient performance. Pricing actions taken early in the year helped moderate the impact on margins, while we continued to invest in expanding our distribution network in rural India and accelerating our industrial business, which delivered another quarter of double-digit volume growth.”
The company said it had been dealing with high double-digit commodity cost inflation through pricing adjustments, while continuing to invest in its distribution infrastructure and industrial business.
Mrinalini Srinivasan, Chief Financial Officer, Castrol India Limited, also cautioned that the operating environment could remain challenging.
“Our EBITDA grew 11% over nine months, supported by pricing action we took early in the year. As communicated in August, we expect the operating environment to remain volatile and inflationary. We will act with agility to manage margin pressures through pricing and cost actions, while remaining focused on growing market share across every segment in which we operate,”
The management’s remarks indicate that controlling costs, protecting margins and maintaining market share will remain important priorities as the company navigates inflationary pressures.
Distribution Network Expands to 1.67 Lakh Outlets
Alongside its financial performance, Castrol India continued expanding its distribution and service networks during the third quarter.
The company’s products are now available through approximately 1,67,000 outlets nationwide, including 46,000 rural outlets.
Its Auto Care portfolio has expanded to approximately 50,000 physical retail outlets, alongside availability through e-commerce platforms and modern trade channels.
Castrol also strengthened its automotive service network, which now includes more than 870 Castrol Auto Service centres, 37,000 independent bike workshops and 16,000 multi-brand workshops.
Its Rural Service Express initiative expanded to more than 1,000 locations, reflecting the company’s efforts to improve accessibility beyond major urban markets.
During the quarter, Castrol added more than 175 new customers across key automotive and mining segments, including workshops and franchise networks.
Its industrial business also added 700 customers across sectors such as automotive and machinery manufacturing, metals, aerospace and sugar.
The expansion reflects a broader effort to diversify the company’s customer base and increase its presence across automotive aftermarket and industrial applications.
New Lubricants and Localised Products Introduced
Castrol India continued developing its product portfolio during the quarter, with a focus on industrial lubrication and automotive maintenance.
The company introduced Magna CTX, a range of circulating oils designed for demanding industrial lubrication applications, including Morgoil back-up roll bearings.
It also localised Castrol Engine Shampoo for cars and motorcycles, along with Hysol 35 XBB and Hysol 61 XBB, boron-free metalworking fluids developed for industrial machining applications.
These additions form part of Castrol’s efforts to address customer requirements across both automotive and industrial segments.
Consumer Engagement and Mechanic Training
Castrol continued investing in brand engagement and training initiatives during the quarter.
The company promoted its Castrol Magnatec engine oil range through a campaign built around the message “non-stop protection even before you start”, highlighting its claimed ability to protect critical engine components even when an engine is switched off.
It also supported Freedom to Ride community events in Mumbai, Pune and Hyderabad, bringing together performance motorcycle enthusiasts.
Meanwhile, Castrol organised a graduation-day ceremony for participants in its Super Mechanics initiative. Participants received certificates from the Automotive Skills Development Council (ASDC), India’s first sector skill council for the automotive industry.
The initiatives underline the company’s continued focus on strengthening relationships with mechanics, service professionals and consumers.
Industry Recognition and Sustainability Initiatives
Castrol India also highlighted several developments involving industrial engagement, supply chain management and manufacturing.
The company showcased its industrial lubricants, heavy-duty solutions and predictive maintenance capabilities at bauma Conexpo India 2026, alongside participation in machine tool and industrial exhibitions.
Its Digital Mechanic initiative, an Amazon microsite designed to provide mechanic-like guidance to consumers purchasing engine oils and auto care products online, received an ET Brand Equity Award.
Castrol was also ranked among the top 10 Supply Chain Planning Champions and placed seventh in Supply Chain Excellence by the Institute of Supply Chain Management (ISCM).
The company’s Silvassa and Paharpur manufacturing facilities received Gold awards at their respective regional chapters of the Convention of Quality Concepts, recognising improvements in manufacturing performance and operational efficiency.
In the sustainability category, Castrol’s Highlander high-density polyethylene (HDPE) blow-moulded bottle, containing 60% recycled material, was featured at the Plastics Recycling Awards (PRS) India 2026.
Outlook: Revenue Growth Continues, but Margins Remain Under Pressure
Castrol India’s latest results present a mixed picture of strong sales growth and mounting profitability challenges.
While revenue increased considerably during the third quarter, the decline in EBITDA and net profit demonstrates the impact of elevated commodity prices and unfavourable currency movements.
The company’s nine-month results, however, indicate that earlier pricing measures and expansion across automotive and industrial markets have helped sustain overall earnings growth.
Looking ahead, Castrol India’s ability to manage input costs, adjust pricing and convert its expanding distribution network into profitable sales will be important determinants of its financial performance.
With the company continuing to invest in rural markets, industrial customers and new product categories, the coming quarters will test whether its revenue momentum can translate into a more sustained recovery in profitability.
