The Mumbai-based firm said profit after tax rose to 2.25 billion rupees ($27.4 million) for the June quarter from 2.06 billion rupees a year ago.

Castrol's revenue from operations increased 7.4% to 13.34 billion rupees.

The company focused on increasing volumes to drive growth as it expanded its portfolio by entering the auto-care range, Castrol said in its earnings statement.

"Despite anticipated challenges in the business environment, we will remain focused on achieving growth and expanding market share," Managing Director Sandeep Sangwan said.

In the service and maintenance segment, Castrol said it has increased its auto service outlets to 350 and bike points to 5,500 by June-end.

The automotive and industrial lubricant manufacturer, however, grappled with soaring costs even after raising prices multiple times over the last year to pass on the elevated commodity costs to consumers.

Total expenses climbed more than 7% to 10.47 billion rupees on the rising cost of raw and packaging materials.

Castrol shares closed down 1.8% at 144.75 rupees after the results, having risen 12.5% in the last six sessions.

($1 = 82.2800 Indian rupees)

(Reporting by Ashish Chandra in Bengaluru; Editing by Eileen Soreng)