Castrol India Q2 profit jumps 43 per cent as revenue hits Rs 1,871 crore

MUMBAI: Castrol is clearly running on all cylinders. Even as supply disruptions and commodity inflation kept the road bumpy, the lubricant maker shifted into a higher gear, delivering robust revenue and profit growth while rewarding shareholders with a higher interim dividend.

Castrol India reported a 25 per cent year-on-year rise in revenue from operations to Rs 1,871.47 crore for the quarter ended 30 June 2026, compared with Rs 1,496.83 crore in the corresponding period last year. Total income climbed to Rs 1,885.47 crore from Rs 1,506.09 crore, while profit before tax rose 44 per cent to Rs 476.03 crore from Rs 329.54 crore. Profit after tax increased 43 per cent to Rs 347.70 crore, up from Rs 244 crore a year ago. Earnings per share improved to Rs 3.51 from Rs 2.47.

For the first half of calendar year 2026, the company posted revenue from operations of Rs 3,416.71 crore, up 17 per cent from Rs 2,918.83 crore a year earlier. Profit before tax stood at Rs 799.14 crore, compared with Rs 642.26 crore, while profit after tax rose 24 per cent to Rs 589.88 crore from Rs 477.46 crore.

The company said growth was driven by strong performances across its consumer, industrial and institutional businesses despite continued pressure from raw material inflation and supply chain disruptions. During the quarter, cost of raw and packing materials consumed increased to Rs 939.54 crore from Rs 697.57 crore, while employee benefit expenses rose to Rs 107.03 crore from Rs 78.81 crore. Other expenses stood at Rs 350.04 crore, up from Rs 296.68 crore, taking total expenses to Rs 1,409.44 crore against Rs 1,176.55 crore in the year-ago quarter.

Backing its earnings with shareholder returns, the board declared an interim dividend of Rs 6.25 per equity share of face value Rs 5 each for calendar year 2026. The record date is 11 August 2026, with the dividend scheduled to be paid on or before 2 September 2026.

Operationally, Castrol continued to widen its market reach. Its national distribution network now covers around 160,000 outlets, while its Auto Care portfolio has expanded to around 40,000 physical outlets. The company also strengthened its service ecosystem through more than 34,000 independent bike workshops, 16,000 multi-brand workshops and over 850 Castrol Auto Service centres. Rural distribution expanded to around 45,000 outlets, supported by more than 950 Rural Service Express centres.

The quarter also saw Castrol expand its premium synthetic lubricant portfolio with launches including Castrol Activ Full Synthetic 10W-30 and 5W-30, Castrol GTX Full Synthetic 5W-30 and Castrol GTX Full Synthetic 0W-20. On the marketing front, its campaign for Castrol Activ Full Synthetic reached more than 150 million consumers, while brand and trade engagement initiatives connected with over 22 million people. The company also engaged more than 10,000 riders through its Road Trip United initiative.

Castrol noted that bp plc’s proposed sale of a 65 per cent stake in Castrol’s global lubricants business to Stonepeak, announced in December 2025 at an enterprise value of around USD 10 billion, has no impact on the company’s financial results for the quarter and half year ended 30 June 2026.