Castrol India Profit Falls on Rising Costs and One-Time Charge

Castrol India reported a decline in its fourth-quarter profit as rising raw material costs and a one-time expense offset steady demand for its automotive lubricants. The company posted a profit after tax of ₹2.45 billion for the quarter ended December, down from ₹2.71 billion during the same period last year, reflecting margin pressures despite healthy market demand.

The lubricant manufacturer continued to benefit from strong growth in India’s automotive sector, with vehicle sales rising significantly during the quarter. Castrol, which supplies engine oils to leading automobile companies, recorded a 6.4% increase in revenue from operations, reaching ₹14.4 billion. However, total expenses grew at a faster pace, mainly due to increased costs of raw and packaging materials.

The quarterly results were also impacted by a one-time charge linked to India’s newly implemented labour code. Meanwhile, Castrol India recently announced that Canada Pension Plan Investment Board and U.S.-based private equity firm Stonepeak plan to acquire a significant stake in the company following a broader deal with BP, which is expected to reshape the company’s ownership structure.

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