Castrol India Ltd (CASTROLIND) Q1 FY27 Results Analysis: PAT Surges 42.5%, Dividend Raised 79%

Castrol India Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 1,871.47 Cr (+25.03% YoY) and PAT growth of +42.50% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Castrol India delivered 25% YoY revenue growth and 42.5% PAT growth, with EBITDA margin expanding 306 bps to 26.41%. The company raised interim dividend by 79% to Rs.6.25 per share, reflecting confidence. However, raw material cost pressure and working capital build are key concerns.

Key Investment Insights

Key Positives

• Revenue grew 25% YoY to Rs.1,871.47 Cr
• PAT grew 42.5% YoY to Rs.347.70 Cr, fastest growth in recent quarters
• EBITDA margin expanded 306 bps YoY to 26.41%, highest in recent quarters
• Interim dividend raised to Rs.6.25 per share, up 79% from prior interim dividend
• Auto care portfolio demand grew 94% YoY

Risk Factors

• Raw material costs as % of revenue rose 3.6pp YoY to 50.20% due to elevated crude and rupee depreciation
• Working capital build: inventories doubled to Rs.1,041.83 Cr and receivables rose to Rs.757.70 Cr
• OCF/PAT ratio at 0.52x, indicating weak cash conversion due to seasonal working capital build
• Fair value loss of Rs.65.99 Cr on equity investments through OCI (non-cash)