CASTROLIND - Castrol India

📊 NSE: CASTROLIND 🏢 Chemicals 📅 Last Updated: 12/13/2025 20:43

💰 Financial Performance

Revenue Growth by Segment

Revenue grew 6% in FY2024 to ₹5,365 Cr. In 3Q 2025, Personal Mobility grew >6%, Commercial Vehicle Oil (CVO) grew 8%, and the Industrial segment grew in double digits.

Geographic Revenue Split

Not disclosed in percentage terms, but the company is aggressively targeting rural penetration and industrial hubs across India.

Profitability Margins

Gross Profit increased by 8% in FY2024. Operating Profit Margin remained stable at 22% and Net Profit Margin at 17% for FY2024.

EBITDA Margin

EBITDA margin was 24% in FY2024. In 3Q 2025, EBITDA rose 13% YoY to ₹323 Cr, representing a margin of approximately 23.7%.

Capital Expenditure

Not disclosed in absolute INR Cr, but the company reported investing in brand building, people, and business growth opportunities, contributing to a ₹128 Cr increase in operating expenses.

Credit Rating & Borrowing

Not applicable as the company has zero borrowings. Finance costs of ₹99.77 Cr in FY2024 relate primarily to Ind AS 116 lease liabilities.

⚙️ Operational Drivers

Raw Materials

Base oil (primary raw material) and packing materials. Material costs increased by 4% in FY2024 due to higher volumes and adverse forex.

Import Sources

Sourced from global markets through the Castrol global supply network to leverage scale.

Key Suppliers

Multiple global suppliers; specific company names are not disclosed, but procurement is managed via global Castrol deals.

Raw Material Costs

Raw material costs represent the bulk of expenses; costs rose 4% in FY2024. The company uses global procurement deals to secure discounts on base oil.

Manufacturing Efficiency

Inventory turnover ratio improved by 4% from 4.94 to 5.16 times in FY2024, indicating better stock movement.

Logistics & Distribution

Not disclosed as a specific percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

7-8%

Growth Strategy

Growth is driven by the 'Onward, Upward, Forward' strategy focusing on double-digit growth in the industrial segment, expanding rural penetration, and strategic price interventions to protect margins.

Products & Services

Lubricants for personal mobility (cars/bikes), commercial vehicle oils (CVO), industrial lubricants, Diesel Exhaust Fuel (DEF), and spare parts.

Brand Portfolio

Castrol (including sub-brands for personal and commercial mobility).

New Products/Services

Expansion in the industrial lubricant segment and Diesel Exhaust Fuel (DEF), though DEF is treated as a low-margin commodity.

Market Expansion

Targeting rural India and the premium industrial lubricant segment to diversify beyond automotive.

Market Share & Ranking

The company claims to be growing faster than the industry average, with 8% YTD volume growth in 2025.

Strategic Alliances

Parentage by BP provides global procurement scale and technical expertise.

🌍 External Factors

Industry Trends

The lubricant industry is mature but seeing a shift toward premiumization and industrial applications; Castrol is growing volumes at 7-8% YoY.

Competitive Landscape

Operates at premium EBITDA margins (21-24%) compared to the broader lubricant industry.

Competitive Moat

Brand equity, a robust distribution network, global procurement scale for base oil, and high employee retention (10+ years average tenure) provide a sustainable competitive advantage.