Financial Performance Q2 FY26

  • Revenue from operations: INR 1,871 crores (25% YoY growth, 21% sequential growth)
  • EBITDA: INR 494 crores (41% YoY growth, 41% sequential growth)
  • Profit After Tax: INR 348 crores (43% YoY growth, 44% sequential growth)
  • EBITDA margin: Approximately 26%

Financial Performance 1H FY26

  • Revenue: INR 3,417 crores (17% YoY growth)
  • EBITDA: INR 823 crores (25% YoY growth)
  • Profit After Tax: INR 590 crores (24% YoY growth)
  • EBITDA margin: Approximately 24%

Dividend Declaration

The Board declared an interim dividend of INR 6.25 per share, payable on or before 2nd September 2026.

Operational Highlights

  • Delivered broad-based growth across consumer, industrial, and institutional business segments
  • Maintained national footprint of approximately 160,000 outlets
  • Expanded auto care range availability to 40,000 outlets
  • Strengthened service ecosystem with 34,000 independent motorcycle workshops and 16,000 car workshops
  • Castrol-branded auto service (CAS) network now at 850 outlets
  • Rural distribution expanded to approximately 45,000 outlets with 950 rural service express outlets
  • Rural business continues to grow at double digits
  • Paharpur plant completed 9 years without significant recordable incident
  • Silvassa plant completed 3 years without significant recordable incident and received NAMC Gold Award
  • Company received Special Jury Award for sustainable procurement practices

Product Innovation and Localization

  • Expanded fully synthetic range with new premium variants in Castrol Activ (Synthetic 10W-30 and 5W-30 visco metrics)
  • Upgraded GTX 5W-30 to fully synthetic product positioning
  • Introduced full synthetic under GTX 0W-20 for modern engines
  • Advanced localization in industrial portfolio by introducing Alusol SL 61 XBB specialized coolant

Marketing and Consumer Engagement

  • Castrol Activ Fully Synthetic campaign reached over 150 million consumers
  • POWER1 brand engaged with 10,000 bikers to strengthen performance credentials

Supply Chain and Cost Management

  • Global sourcing network and diversified supplier base helped cushion impact of supply disruptions and commodity volatility
  • Disciplined inventory planning enabled reliable customer service and strong operating leverage
  • Expect impact of commodity and feedstock inflation to become more visible in Q3 FY26
  • Raw material sourcing mix maintained at approximately 55% domestic and 45% international

Business Segments

  • Industrial business contributes approximately 15% of overall business and is growing faster than rest of company
  • Company maintains strategy to broaden distribution reach, focus on urban clusters for premiumization, and deepen rural market penetration

Future Outlook

  • Remain cautious given higher inflationary pressures, uneven monsoon conditions, and continued volatility in key commodities
  • Focus on disciplined execution, careful cost management, resilient supply, and sustained investment in long-term competencies
  • Target EBITDA margin range of 21% to 24%
  • Building capabilities for specialized EV fluids while recognizing internal combustion engines and hybrids will remain dominant

Other Business Updates

  • Data center cooling solutions business: Products ready for both immersion cooling and direct-to-chip technologies, currently not material part of business
  • Investment in Ki Mobility: Revaluation loss of INR 66 crores in OCI due to external market volatility affecting comparable companies
  • Capex: Annual spending of approximately INR 100 crores split between manufacturing upgrades and market visibility investments
  • BP divestment: Stonepeak emerging as lead bidder for BP's 65% stake in global Castrol company, transaction progressing with regulatory approvals across multiple countries