Q2 2026 Castrol India Ltd Earnings Call Transcript
Key Points
- Castrol India Ltd (BOM:500870) delivered strong broad-based growth across consumer, industrial, and institutional businesses, with revenue up 25% year-on-year in Q2 2026.
- The company's EBITDA margin expanded to approximately 26% in Q2 2026, driven by pricing actions, portfolio premiumization, and prudent cost management.
- Castrol India Ltd (BOM:500870) expanded its distribution reach to approximately 160,000 outlets, including growth in rural areas to 45,000 outlets, supporting double-digit rural business growth.
- The company continued to innovate with new fully synthetic product launches, such as Castrol Active Synthetic and GTX upgrades, and advanced localization in industrial products like Alusol SL 61 XBB.
- Castrol India Ltd (BOM:500870) declared an interim dividend of Rs. 6.25 per share, reflecting strong cash flow generation and a commitment to rewarding shareholders.
- The company's resilient supply chain and disciplined inventory planning ensured uninterrupted customer supplies despite supply disruptions and commodity cost inflation.
- Castrol India Ltd (BOM:500870) is building capabilities for specialized EV fluids and data center cooling solutions, positioning for future growth opportunities.
- Castrol India Ltd (BOM:500870) expects the impact of commodity and feedstock inflation to become more visible in Q3 2026, potentially pressuring margins.
- The company faces uncertainty regarding the timeline for the BP divestment and Stone Peak's open offer, which is pending regulatory approvals across multiple countries.
- Castrol India Ltd (BOM:500870) experienced a loss of around Rs. 66 crores in Other Comprehensive Income (OCI) due to the revaluation of its investment in Key Mobility, reflecting market volatility.
- The company's pricing actions may not fully offset raw material cost increases, especially with foreign exchange volatility and potential further adverse movements in commodity prices.
- Castrol India Ltd (BOM:500870) faces risks from uneven monsoon conditions and continued volatility in key commodities, which could impact demand and operational performance.
- The company's data center cooling solutions business is not yet material, and trials are long-range, with revenue contribution expected to be several years away.
- Castrol India Ltd (BOM:500870) noted that the Silvassa plant was temporarily shut down due to heavy rainfall in July 2026, though operations have since resumed at peak levels.
Ladies and Gentlemen, Good day and welcome to our 2Q and 1H earnings conference call for Castrol India Limited.
(Operator Instructions)
These statements are not the guarantee of future performance and involve risk and uncertainties that are difficult to predict.
We have with us today Mr. Saugata Basuray, Managing Director, Cashflow India Limited. And Ms. Mrinalini Srinivasan, Chief Financial Officer, Castrol India Limited. And now in the conference over to, Mr. Basu.
Thank you and over to you, sir.
Thank you and good afternoon and Namaste everyone.
Thank you for joining Castrol India's analyst call for the second quarter and first half of the year ended 30th June 2026. As a reminder, we follow the calendar year for financial reporting. I'm joined today by my colleague, Mr. Mrinalini Srinivasan, our Chief Financial Officer and Full-time Director. Moving into the commentary for the quarter, we delivered another strong quarter with broad
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