Castrol India Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Castrol India Ltd filed with BSE on 10 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Castrol India reported second quarter FY26 revenue of Rs 1,871 crores, up 25% year-on-year, with EBITDA of Rs 494 crores and profit after tax of Rs 348 crores. Management attributed the growth to broad-based volume gains across consumer, industrial and institutional segments, pricing actions taken in low double digits, and portfolio premiumization, while noting that raw material and commodity cost increases were delayed into the quarter and expected to become more visible in the third quarter. The Board declared an interim dividend of Rs 6.25 per share, and management discussed the pending Stonepeak transaction, data center cooling opportunities, and the Silvassa plant's return to normal operations after flooding.
Numbers mentioned
Revenue from operations: INR1,871 crores (Q2 FY26)
p. 5
“For the second quarter of FY26, revenue from operations was INR1,871 crores.”
Mrinalini Srinivasan, page 5 of the filed PDF · View the filing
Revenue growth year-on-year: 25% (Q2 FY26)
p. 5
“This is 25% up yearon-year basis and 21% sequentially.”
Mrinalini Srinivasan, page 5 of the filed PDF · View the filing
EBITDA: INR494 crores (Q2 FY26)
p. 5
“EBITDA for the quarter was INR494 crores, an increase of 41% year-on-year and 41% sequentially.”
Mrinalini Srinivasan, page 5 of the filed PDF · View the filing
Profit after tax: INR348 crores (Q2 FY26)
p. 5
“Profit after tax was INR348 crores, up 43% year-on-year and 44% sequentially.”
Mrinalini Srinivasan, page 5 of the filed PDF · View the filing
Revenue: INR3,417 crores (1H FY26)
p. 6
“For the first half, revenue was INR3,417 crores, 17% year-on-year, and EBITDA was INR823 crores, up 25%.”
Mrinalini Srinivasan, page 6 of the filed PDF · View the filing
Profit after tax: INR590 crores (1H FY26)
p. 6
“Profit after tax was INR590 crores, up 24%.”
Mrinalini Srinivasan, page 6 of the filed PDF · View the filing
EBITDA margin: approximately 26% (Q2 FY26)
p. 6
“This translates to an EBITDA margin of approximately 26% for the quarter and 24% for the first half.”
Mrinalini Srinivasan, page 6 of the filed PDF · View the filing
Interim dividend: INR6.25 per share (FY26)
p. 6
“The Board this quarter has declared an interim dividend of INR6.25 per share, which will be payable on or before 2nd September 2026.”
Mrinalini Srinivasan, page 6 of the filed PDF · View the filing
National outlet footprint: approximately 160,000 outlets (Q2 FY26)
p. 4
“We maintain a national footprint of approximately 160,000 outlets.”
Saugata Basuray, page 4 of the filed PDF · View the filing
Industrial business share of revenue: about 15%
p. 20
“Industrial business, as you would remember in the past, we've spoken about it, has contributed about 15% of our overall business.”
Mrinalini Srinivasan, page 20 of the filed PDF · View the filing
Capex: INR100 crores
p. 20
“So that continues to be in the range as we always declare for the year that we spend about INR100 crores, almost about half amidst both of them.”
Mrinalini Srinivasan, page 20 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
EBITDA margin — 21% to 24%
stated firmly by Saugata Basuray
p. 13
“the second is our direction on maintaining our EBITDA margin at 21% to 24%.”
Saugata Basuray, page 13 of the filed PDF · View the filing
Commodity and feedstock cost impact — Q3
stated firmly by Mrinalini Srinivasan
p. 6
“We, therefore, expect the impact of commodity and feedstock inflation to become more visible in the third quarter.”
Mrinalini Srinivasan, page 6 of the filed PDF · View the filing
Pricing action
stated conditionally by Saugata Basuray
p. 16
“if the cost of raw materials and/or foreign exchange further sort of moves adversely, then we stand ready to take pricing action.”
Saugata Basuray, page 16 of the filed PDF · View the filing
Sourcing mix (domestic vs international) — 55%, 45%
stated firmly by Saugata Basuray
p. 18
“I think the guidance on 55%, 45% broadly remains.”
Saugata Basuray, page 18 of the filed PDF · View the filing
Data center cooling business
stated as an aspiration by Saugata Basuray
p. 11
“but as it emerges, we'll be there to participate.”
Saugata Basuray, page 11 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the transaction is progressing but timing depends on the global deal closure, which is beyond India's control, and no specific timeline was given.
Answered by Mrinalini Srinivasan
Asked by Devansh Jain: When can the open offer related to the BP-Stonepeak transaction be expected to conclude?
p. 7
“The transaction currently is progressing well, and Stonepeak is in the process of getting the right licenses and operating methods across the entire country, across the entire world, which is many countries.”
Mrinalini Srinivasan, page 7 of the filed PDF · View the filing
Management confirmed the plant had temporarily ceased operations due to heavy rainfall but is now fully back to peak operating levels.
Answered by Saugata Basuray
Asked by Dhaval Popat: Was there flood damage or utilization impact at the Silvassa plant?
p. 8
“But I'm pleased to say that the plant is fully back up. We have a business continuity plan which kicked in, and operating levels of the plant are at the same peak level as it was in quarter 2 and earlier this year.”
Saugata Basuray, page 8 of the filed PDF · View the filing
Management confirmed cost increases were delayed into the P&L and some inventory was consumed at lower cost, but said profitability grew even excluding one-time inventory benefits.
Answered by Mrinalini Srinivasan
Asked by Vipul Kumar Shah: Was there any inventory gain in the quarter?
p. 10
“What I can say is that even excluding these one-time benefits of the inventory, we have grown profitability healthy in this quarter.”
Mrinalini Srinivasan, page 10 of the filed PDF · View the filing
Management said the company runs lean inventory and Q3 will use inventory bought toward the end of Q2, implying limited carryover of low-cost stock.
Answered by Mrinalini Srinivasan
Asked by Nitin Borecha: Will low-cost inventory benefits continue into Q3?
p. 14
“No, Mr. Borecha. I think we pride ourselves on a very lean inventory profile. So, we do churn our inventory fast, and that's why we are already planning for the inventory that we will use in 3Q to be that which has been bought towards the end of second quarter.”
Mrinalini Srinivasan, page 14 of the filed PDF · View the filing
Management said pricing has been modeled for Q3 but the environment remains volatile and they stand ready to take further action if costs or forex move adversely.
Answered by Saugata Basuray
Asked by Keshav: Are the two price hikes taken sufficient to offset raw material cost increases in Q3?
p. 16
“Having said that, the environment remains very volatile, and at this point in time, the stance that we've taken is, if the cost of raw materials and/or foreign exchange further sort of moves adversely, then we stand ready to take pricing action.”
Saugata Basuray, page 16 of the filed PDF · View the filing
Management explained it was a periodic revaluation of the investment in Ki Mobility based on external comparable company valuations, not an operational loss.
Answered by Mrinalini Srinivasan
Asked by Arya Patel: What caused the loss in Other Comprehensive Income (OCI)?
p. 18
“It is a revaluation of our investment into Ki Mobility.”
Mrinalini Srinivasan, page 18 of the filed PDF · View the filing
Management said the 55/45 sourcing mix broadly remains and gave a breakdown that industrial contributes about 15% of overall business, without providing exact B2B/B2C split.
Answered by Mrinalini Srinivasan
Asked by Dhaval Popat: What is the current B2C/B2B revenue split and sourcing mix?
p. 20
“Industrial business, as you would remember in the past, we've spoken about it, has contributed about 15% of our overall business.”
Mrinalini Srinivasan, page 20 of the filed PDF · View the filing
Management confirmed group 3 base oil prices are elevated due to the Middle East crisis, and said pricing actions and cost efficiency would be used to manage the impact.
Answered by Saugata Basuray
Asked by Jagdishwar: How is the group 3 base oil shortage and price increase affecting the business?
p. 21
“I think the subtext to it, which is in terms of group 3 base oil, yes, its elevated, and it is being impacted by the Middle East crisis.”
Saugata Basuray, page 21 of the filed PDF · View the filing
Risks flagged
Higher inflationary pressures, uneven monsoon, and commodity volatility
p. 6
“Looking ahead, we remain cautious given higher inflationary pressures, uneven monsoon conditions, and continued volatility in key commodities.”
Mrinalini Srinivasan, page 6 of the filed PDF · View the filing
Delayed cost increases expected to become more visible in Q3
p. 6
“We, therefore, expect the impact of commodity and feedstock inflation to become more visible in the third quarter.”
Mrinalini Srinivasan, page 6 of the filed PDF · View the filing
Volatile external environment affecting raw material and foreign exchange costs
p. 13
“External environments remain very volatile. If the volatility increases or if facts change, then we stand prepared to take whatever other pricing action is required.”
Saugata Basuray, page 13 of the filed PDF · View the filing
Group 3 base oil price elevation due to Middle East crisis
p. 21
“I think the subtext to it, which is in terms of group 3 base oil, yes, its elevated, and it is being impacted by the Middle East crisis.”
Saugata Basuray, page 21 of the filed PDF · View the filing
Flooding disrupted Silvassa plant operations temporarily
p. 8
“We had ceased operation of our plant at that point in time, in the interest of safety.”
Saugata Basuray, page 8 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.