Castrol India reported a net profit of Rs 176.37 crore for Q3 CY2026, marking a drop both sequentially and year-on-year as raw material costs remained elevated.
The company's net profit fell 23 percent compared to Rs 227.80 crore recorded in the corresponding quarter of the previous year. On a sequential basis, net profit dropped 49 percent from Rs 347.70 crore in the preceding quarter. Profit before tax for the quarter stood at Rs 243.38 crore, down from Rs 307.87 crore in Q3 2025 and Rs 476.03 crore in Q2 2026.
Despite margin pressures, revenue from operations grew 27 percent year-on-year to Rs 1,734.72 crore compared to Rs 1,362.75 crore in the prior-year period. Sequentially, operational revenue contracted 7.3 percent from Rs 1,871.47 crore.
Profit contraction was driven by a sharp escalation in total expenses, which rose 41 percent year-on-year to Rs 1,504.74 crore from Rs 1,067.18 crore. Direct raw and packing material expenses accounted for the largest share of this inflation, jumping 70.8 percent year-on-year to Rs 1,085.86 crore compared to Rs 635.79 crore in Q3 2025. On a sequential basis, material consumption costs increased 15.6 percent from Rs 939.54 crore in Q2 2026 despite the quarterly decline in sales volume.
Saugata Basuray, Managing Director, Castrol India, commented, "Pricing actions taken early in the year helped moderate the impact on margins." Mrinalini Srinivasan, Chief Financial Officer, added, "We expect the operating environment to remain volatile and inflationary."