Castrol India Q2 profit rises 44% QoQ; declares ₹6.25 interim dividend

Castrol India reported Q2 FY2026 net profit of ₹348 crore, up 43.6% sequentially, as revenue rose 21.1% to ₹1,871 crore. EBITDA grew 50% to ₹494 crore and margin expanded to 26.4%. The company declared an interim dividend of ₹6.25 per share, with August 11 as the record date.

— Source publishedTue, 4 Aug, 2026, 16:01 IST·First seen Tue, 4 Aug, 2026, 16:58 IST·Source NDTV Profit

What happened

Castrol India reported stronger Q2 FY2026 earnings, with profit up 43.6% sequentially to Rs 348 crore and revenue up 21.1%. EBITDA margin expanded to 26.4%. The

Key facts

  • Q2 FY2026 net profit: Rs 348 crore, up 43.6% QoQ from Rs 242 crore
  • Revenue from operations: Rs 1,871 crore, up 21.1% QoQ from Rs 1,545 crore
  • EBITDA: Rs 494 crore, up 50% QoQ from Rs 329 crore
  • EBITDA margin: 26.4%, versus 21.3% in the previous quarter
  • Distribution network: approximately 1.5 lakh outlets
  • Interim dividend: Rs 6.25 per share
  • Dividend record date: August 11
  • Recommended final dividend for 2025: Rs 5.25 per share

Why this matters

The sharp margin and profit acceleration reinforces Castrol India’s strategic value as a scaled, cash-generative automotive-lubricants platform amid evolving mobility demand.

What to watch

  • Sequential volume growth versus price-led revenue growth.
  • Base-oil and crude-price movements, plus INR/USD changes affecting imported inputs.
  • Whether EBITDA margin remains above 25% in the next quarter.
  • Management commentary on channel inventory, pricing actions and market-share trends.
  • Capex, advertising and distribution-spend guidance following the strong profit print.
  • Full-year dividend outlook and cash-flow conversion after the interim payout.
  • Increase dealer, workshop and quick-lubrication channel incentives to convert earnings momentum into share gains.
  • Accelerate premium-product mix, especially fully synthetic oils and commercial-vehicle lubricants, to defend pricing power.
  • Use dividend signaling and cash strength to support expectations for a larger full-year shareholder return.
  • Expand EV-thermal-management and specialized fluid offerings as long-term engine-oil demand faces structural pressure.