Castrol India reported its 4Q FY 2025 results, marking the eighth straight quarter of volume-led growth and achieving the highest-ever revenue for the year. Full-year volume grew 8% YoY, driven by personal mobility and double-digit growth in the industrial segment. Management confirmed a commitment to disciplined execution, innovation, and announced a final dividend of INR5.25 per share, totaling INR8.75 for the year, signaling confidence in future resilience.
Strong Full-Year Performance and Volume Growth
Castrol India concluded the Financial Year 2025 (January to December calendar year) with strong and consistent delivery, achieving its eighth consecutive quarter of volume-led growth and realizing the highest-ever revenue for the year. For the full year, volume increased by 8% year-on-year, supported by steady demand in personal mobility and double-digit growth in the industrial portfolio and rural distribution.
In the fourth quarter (Q4), revenue grew 6% YoY, and volume grew by 8%. Despite a volatile operating environment involving raw material and currency volatility, the company maintained focus on disciplined execution, cost management, and brand investment.
Financial Health and Shareholder Returns
The Chief Financial Officer reported that revenue from operations for the full year grew 7% YoY to INR5,722 crores. EBITDA stood at INR1,348 crores, a 5% YoY increase. Profit After Tax (PAT) reached INR950 crores, up from INR927 crores in the prior year. The full-year EBITDA margin closed at the top of the guided range of 21% to 24% (at 24%).
In recognition of the performance, the Board recommended a final dividend of INR5.25 per share, bringing the total dividend for the year to INR8.75 per share. Management noted that typically, the payout (excluding special dividends) is maintained at 4.8%-5.0%.
Strategic Focus and Innovation
Management emphasized a focus on staying close to customers and scaling up innovation. During the year, nearly 20 products were launched or localized across automotive, industrial, and specialty ranges, including advanced Hysol and Alusol industrial products and the new Spheerol range.
Key strategic collaborations included forging a partnership with Triumph Motorcycles for Castrol POWER1 and signing an MOU with VinFast Auto India to support EV aftersales services.
Distribution Network Expansion
Distribution reach continues to deepen, now covering over 150,000 outlets nationwide. The service network has grown to 750 Castrol Auto Service points, reaching 30,000 bike workshops. Rural distribution now includes over 40,000 rural outlets.
Outlook: Mobility Transition
Looking ahead, Castrol expects India’s mobility landscape to evolve steadily, with Internal Combustion Engines (ICE) and hybrid engines forming the backbone for the foreseeable future, even as new technologies scale up. The company anticipates volume growth at 1.5x to 2x the market growth rate (estimated between 3.5% and 4% growth).
Management detailed the low-carbon mobility pathways, noting that the contribution of pure EVs is currently small (EVs constitute about 5%-6% of new cars and 10% of new 2-wheelers). Castrol has engaged with leading OEMs for EV fluid applications, including specialized immersion coolants for data center cooling, which is viewed as a long-term, high-value growth adjacency, albeit currently at a very early stage.
The profile of the business is expected to shift, with the industrial segment’s contribution to volume growing higher over time compared to the core automotive business.
Source: BSE
