Castrol India lifts operating margin to 26.41% in Q1FY27
Revenue grew faster than expenses, while net profit rose +42.50% YoY despite a 1.00 percentage-point increase in the tax rate.
Filed 04 Aug 2026, 15:32 IST · after market close · Castrol India Ltd (CASTROLIND)
Key takeaways
- Standalone revenue grew +25.03% YoY in Q1FY27, outpacing the +20.05% rise in expenses.
- Operating margin expanded 3.06 percentage points YoY to 26.41%, helped by slower expense growth.
- Net profit rose +42.50% YoY to Rs 347.70 cr despite a 1.00 percentage-point increase in the tax rate.
Price around the results
Revenue acceleration lifts standalone profit
Castrol India's standalone revenue grew +25.03% YoY and +21.11% QoQ, while operating profit rose +41.39% YoY and +50.07% QoQ. Net profit growth was also ahead of revenue growth at +42.50% YoY, although the higher tax rate limited the conversion of pre-tax gains.
Slower cost growth drives the margin recovery
Expenses grew +20.05% YoY against revenue growth of +25.03%, widening operating margin by 3.06 percentage points. Sequentially, revenue grew +21.11% while expenses rose +13.27%, taking margin up 5.10 percentage points from Q4FY26. Interest expense fell -35.11% YoY, but other income contributed only 2.94% of pre-tax profit, so earnings were not materially dependent on non-operating income.
Margin rebounds after Q4FY26 decline and leads energy peers
Operating margin had fallen to 21.31% in Q4FY26 after reaching 25.55% in Q3FY26, before recovering to 26.41% in Q1FY27. The company's margin was 13.92 percentage points above the 12.49% median for 13 Energy peers that had reported, placing it highest by the supplied peer ranking.
No immediate market reaction after the filing
The standalone results were filed after market close, so there is no post-results move to assess yet. Across the five prior result reactions, the stock rose twice and fell three times, with a median absolute move of 1.27%.
Q1FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,871 cr | ₹1,545 cr | +21.11% | +25.03% |
| Other income | ₹14 cr | ₹23 cr | -40.02% | +51.19% |
| Expenses | ₹1,377 cr | ₹1,216 cr | +13.27% | +20.05% |
| Operating profit | ₹494 cr | ₹329 cr | +50.07% | +41.39% |
| Operating margin (%) | 26.41% | 21.31% | — | — |
| Interest | ₹2 cr | ₹2 cr | -9.09% | -35.11% |
| Depreciation | ₹30 cr | ₹28 cr | +10.05% | +14.39% |
| Profit before tax | ₹476 cr | ₹323 cr | +47.33% | +44.45% |
| Tax | ₹128 cr | ₹81 cr | +58.57% | +50.02% |
| Net profit | ₹348 cr | ₹242 cr | +43.57% | +42.50% |
| EPS (₹) | ₹3.51 | ₹2.45 | +43.27% | +42.11% |
Operating margin of 26.41% compares with a Energy sector median of 12.49% across 13 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 26.41% in the next reported quarter.
- Whether revenue growth remains ahead of expense growth after +25.03% versus +20.05% YoY.
- Whether the tax rate moves back from 26.96%.