Mumbai, India – Castrol India, a prominent player in automotive and industrial lubricants, is actively addressing the growing challenge posed by the rapid surge in electric vehicle (EV) sales across the country. Mrinalini Srinivasan, the company's CFO and Whole-time Director, outlined Castrol's strategic response during a recent interaction, coinciding with the announcement of robust second-quarter earnings.
The EV Shift and Castrol's Strategy
Recent data underscores the urgency of this shift: electric passenger vehicle (E-PV) registrations soared by 73% year-on-year in July. For the first four months of FY27, E-PV registrations nearly doubled, jumping 90% year-on-year to 119,343 units from 62,808 units in the corresponding period last year, according to a Nuvama report.
Srinivasan confirmed that Castrol India is developing and manufacturing meaningful solutions specifically for electric mobility locally. The company has established close collaborations with various EV Original Equipment Manufacturers (OEMs) to foster growth within the electric vehicle sector. Furthermore, Castrol India has inked a Memorandum of Understanding (MoU) with VinFast, a leading automotive EV manufacturer based in Vietnam, signaling its commitment to the global EV market.
Beyond Electric: Embracing Alternate Fuels
While acknowledging the rise of EVs, Srinivasan emphasized that Castrol does not view electric vehicles as the sole future of mobility. Instead, the company anticipates a comprehensive transition involving multiple alternate fuels.
"We believe there will be a transition through many alternate fuels and we are really figuring out what the play for Castrol is in these alternate fuels. For example, auto industry results have just come out and CNG vehicles have actually led the path growth. I think CNG vehicle have grown 30%, uh, while the overall auto industry also saw a big peak in four-wheeler engines as well. And similarly, the transition will go through CNG, hybrids, potentially even other alternate fuels like for example hydrogen."
To support this diverse energy landscape, Castrol India is partnering with OEMs to ensure its lubricant solutions are precisely engineered for engines powered by CNG, hybrids, and potentially hydrogen. The company currently holds a significant market share in lubricants: 51% in the car market, 28% in motorcycles, and 20% in the commercial vehicles segment.
Strong Financial Performance in Q2
Amidst its strategic adaptation, Castrol India reported impressive financial results for the second quarter of the current fiscal year (Q2 FY27).
- Net Profit: Rose 42.5% year-on-year to Rs 347 crore, up from Rs 244 crore in the same quarter last year.
- Revenue from Operations: Increased by 25% to Rs 1,871 crore, compared to Rs 1,497 crore previously.
- EBITDA: Grew 40.8% year-on-year to Rs 599.4 crore, from Rs 425.7 crore.
- EBITDA Margin: Expanded to 32.03% from 28.44% a year earlier, reflecting improved operating efficiency and cost management despite volatile raw material costs.
For the first half of calendar year 2026, Castrol India's revenue from operations saw a 17% year-on-year increase to Rs 3,417 crore. EBITDA climbed 25% to Rs 823 crore, and profit after tax (PAT) rose 24% to Rs 590 crore, demonstrating sustained earnings momentum.
Interim Dividend Declared
The board of directors approved an interim dividend of Rs 6.25 per equity share (face value Rs 5 each) for the financial year ending December 31, 2026. August 11, 2026, has been set as the record date for determining eligible shareholders, with the dividend slated for payment within 30 days of its declaration.