Castrol India’s shares slid 1.39% to ₹194.64 on Friday after the company disclosed a steep 49.3% drop in Q3 net profit to ₹176.4 crore, while revenue slipped 7.3% to ₹1,734.7 crore.
The quarter’s top line fell from ₹1,871.5 crore in Q2, reflecting a 7.3% sequential decline. The decline mirrors a broader oil‑and‑gas trend of tightening margins amid higher lubricant raw‑material costs.
Earnings before interest, tax, depreciation and amortisation fell 47% to ₹262.3 crore, and EBITDA margin contracted from 26.4% to 15.1%, a 11.3‑percentage‑point slide that left the company with an operating margin of just 1.8%.
MD Saugata Basuray said pricing actions introduced earlier in the year helped cushion the impact, while the firm continued to bolster its distribution network – expanding to 1.67 lakh outlets, including 46,000 rural, and adding 870 Castrol Auto Service centres and 37,000 independent bike workshops.
CFO Mrinalini Srinivasan cautioned that the operating environment is likely to stay volatile and inflationary, signalling that margin pressures will persist. The company will rely on further pricing and cost measures, and investors will be watching Q4 results for signs of a rebound.