Castrol India Q3 Results: EBITDA Drops to ₹3.68B, Margin Compresses to 25.58%
Castrol India reported mixed Q3 results with revenue growing 6.67% to ₹14.4 billion, but profitability metrics declined across the board. EBITDA dropped to ₹3.68 billion from ₹3.75 billion with margin compressing to 25.58% from 27.67%. Net profit fell 9.26% to ₹2.45 billion, indicating significant margin pressures in the lubricants sector.

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Castrol India has reported challenging third quarter financial results, with declining profitability metrics across key parameters. The lubricants manufacturer faced margin pressures despite revenue growth, reflecting the complex operating environment in the sector.
Revenue Growth Amid Profitability Challenges
The company demonstrated resilience on the top-line, with quarterly revenue reaching ₹14.4 billion compared to ₹13.5 billion in the corresponding quarter of the previous year. This represents a year-on-year revenue growth of 6.67%, indicating strong demand for the company's products despite challenging market conditions.
| Financial Metric: | Q3 Current Year | Q3 Previous Year | Change (%) |
|---|---|---|---|
| Revenue: | ₹14.4 billion | ₹13.5 billion | +6.67% |
| Net Profit: | ₹2.45 billion | ₹2.70 billion | -9.26% |
| EBITDA: | ₹3.68 billion | ₹3.75 billion | -1.87% |
| EBITDA Margin: | 25.58% | 27.67% | -209 bps |
EBITDA Performance Under Pressure
Castrol India's operational profitability came under significant pressure during the quarter. The company's EBITDA declined to ₹3.68 billion from ₹3.75 billion in the same quarter of the previous year. More concerning was the compression in EBITDA margin, which dropped to 25.58% from 27.67% year-on-year, representing a decline of 209 basis points.
Bottom-Line Impact
The margin pressures translated into a notable impact on net profitability. The company reported a net profit of ₹2.45 billion for the period, down from ₹2.70 billion in the same quarter of the previous year. This represents a decline of ₹0.25 billion, translating to a 9.26% year-on-year decrease in net profit.
Performance Analysis
The quarterly results highlight the challenging operating dynamics faced by Castrol India. While the company successfully grew its revenue by 6.67%, both EBITDA and net profit margins contracted significantly. The decline in EBITDA margin from 27.67% to 25.58% indicates cost pressures or pricing challenges within the lubricants sector, affecting the company's operational efficiency and profitability metrics.
Historical Stock Returns for Castrol
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.40% | +2.19% | -2.15% | -14.20% | +6.19% | +45.15% |


































