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Informist, Wednesday, Aug. 5, 2026

 

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--Castrol India: To see higher commodity prices impact in Jul-Sept
--CONTEXT: Comments by Castrol India mgmt in post earnings analyst call
--Castrol India: Raised prices owing to supply chain volatility, inflation
--Castrol India: Took price hikes in low double digits in Apr-Jun
--Castrol India: May take further price hikes if commodity prices move higher
--Castrol India: There is more demand in rural India from emerging customers
--Castrol India: Retain annual capex guidance of INR 1 bln
--Castrol India: No plans for any strategic capex at present
--Castrol India: Premium products gain traction in urban customers

 

By Sunil Raghu and Adhithya Aji

 

AHMEDABAD/MUMBAI – Castrol India does not have any plan to make any strategic investment in the medium term but continues to maintain its guidance of investing about INR 1 billion annually in operational capital expenditure, the company's management told analysts in a post-earnings conference call Wednesday.

 

The official said the annual capital expenditure is spent on the company's manufacturing units to make sure they are up to the latest standards of health and safety or expand capacity, and in the market to ensure the right level of visibility for its dealers and workshops. On strategic investments, the official said the company always does that. "We do many investments. There is nothing to share at this moment, but we will be sharing as and when we are ready," the official said.

 

The lubricant maker's net profit for the June quarter jumped 43% on year and 44% sequentially to INR 3.48 billion, beating the Street's estimates of INR 2.41 billion. Revenue from operations rose 25% on year and 21% on quarter to INR 18.71 billion. Analysts had estimated a top line of INR 16.42 billion.

 

The company also implemented a "low double-digit" price hike in the June quarter. "With that, there are two price increases that we have implemented this year, Jan to June, in context of the supply chain volatility as well as inflation that we have seen," the management said.

 

The official said that while the pricing actions have been "sufficient" to offset the increase in raw material costs that has come through in the September quarter, they are open to further price hikes if the situation so demands. "We expect some of the raw material increases to sustain and cost below Q3," the official said.

 

Castrol India said it has continued to see meaningful growth in rural India. The company said there is more demand coming from emerging customers of automobiles in rural parts of the country. On the urban side, premium products have more traction on higher luxury vehicle sales, the management said.

 

At 1357 IST, shares of Castrol India were at INR 191.88 apiece on the National Stock Exchange, up nearly 3% from Tuesday.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Rajeev Pai

 

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