Castrol India Q2 FY27 Results (NSE: CASTROLIND)
Signal: Margin expansion
The read
Castrol delivered a standout Q2 with revenue +25% YoY to ₹1,871 Cr and EBITDA +41% to ₹494 Cr, driving a 293bps margin expansion to 26.4%. The quarter confirms operating leverage: employee cost + other expenses grew slower than revenue, and raw material cost % held flat despite commodity inflation, demonstrating pricing power and supply chain agility. PAT rose 43% to ₹348 Cr. The interim dividend was raised to ₹6.25/share (vs ₹3.5 last year). The company remains cautious on H2 due to inflation and monsoon risks, but momentum is strong.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,871.47 Cr | 25.0% | 21.1% |
| EBIT | ₹802.71 Cr | 24.0% | |
| Net profit | ₹347.7 Cr | 42.5% | |
| EPS | ₹3.51 | 42.1% | |
| EBIT margin | 26.4% |
P&L walk
Standalone-only; no consolidated statement filed.
Segments
Single lubricant segment; no geographical split filed.
Key positives
- Revenue grew 25% YoY, driven by volume growth across consumer, industrial and institutional businesses.
- EBITDA grew 41% YoY, outpacing revenue by 16pp, powered by operating leverage and cost discipline.
- EBITDA margin expanded 293bps YoY to 26.4%, a third consecutive quarter of improvement.
- Interim dividend hiked to ₹6.25/share (78% YoY increase).
- Strong balance sheet: net cash ₹863 Cr; no debt.
Key concerns
- Raw material inflation and supply disruptions persist; company flagged continued volatility.
- Working capital stretched: inventories +91% vs Dec 2025; receivables +60%; cash from ops dropped 25% in H1.
- Capex doubled to ₹84.47 Cr in H1 (from ₹41.42 Cr in H1 FY26) – will need to see if returns materialise.
Research and educational content only. Not investment advice.