According to reports from CNBC TV18, Castrol India reported a 49.3% sequential decline in net profit to ₹176.4 crore from ₹347.7 crore in the previous quarter. The company's revenue fell 7.3% quarter-on-quarter to ₹1,734.7 crore from ₹1,871.5 crore in the previous quarter. EBITDA dropped 47% to ₹262.3 crore from ₹494.5 crore, with EBITDA margin contracting significantly to 15.1% from 26.4% in the previous quarter. However, Chief Financial Officer Mrinalini Srinivasan noted that EBITDA grew 11% over the first nine months of the calendar year, indicating some recovery despite quarterly challenges.
As reported by CNBC TV18, the company faced rising raw material costs and unfavorable currency movements during the quarter. Saugata Basuray, managing director of Castrol India, stated that the company navigated a challenging operating environment marked by sharp rise in raw material costs and unfavorable currency movements. However, pricing actions implemented earlier in the year helped cushion the impact on margins, while the company continued investing in expanding its rural distribution network and strengthening its industrial business. The industrial business recorded another quarter of double-digit volume growth, demonstrating resilience despite margin pressures.
According to the exchange filing reported by CNBC TV18, Castrol India expanded its national distribution footprint to approximately 1.67 lakh outlets, including 46,000 rural outlets. The company's Auto Care portfolio is now available across around 50,000 physical outlets, in addition to e-commerce and modern trade channels. The company also expanded its service ecosystem to more than 870 Castrol Auto Service centres, 37,000 independent bike workshops and 16,000 multi-brand workshops. Its Rural Service Express network now covers more than 1,000 locations, continuing to strengthen its reach across markets.
As reported by CNBC TV18, shares of Castrol India ended 1.39% lower at ₹194.64 on Friday, October 23. The stock has gained 0.6% over the past month and is up 1.8% so far this year. Chief Financial Officer Mrinalini Srinivasan cautioned that the operating environment was likely to remain volatile and inflationary, while the company will continue to respond to margin pressures through pricing and cost measures while maintaining focus on expanding market share across its businesses. Despite quarterly challenges, the company's nine-month EBITDA growth of 11% suggests underlying business strength.
