Castrol India Ltd is principally engaged in the business of manufacturing & marketing of automotive and industrial lubricants and related services. The company has established itself as a dominant player in the Indian lubricant market over its remarkable 115-year journey in the country. Castrol India Limited, part of the bp group, is a leading lubricant company with a 115-year presence in India.
The company operates through a comprehensive business model that encompasses manufacturing, distribution, and marketing of specialized lubricants across multiple sectors. The company manufactures and sells various kinds of oil lubricants and other fluids for cars, motorcycles, commercial vehicles, industrial use, energy sector, marine, and IT cooling and data center. This diversified product portfolio positions Castrol India as a one-stop solution provider for lubrication needs across various industries.
Today's market capitalization of Castrol India is ₹21,845.76 Crore. The company has demonstrated solid financial performance with Revenue: ₹5,462 Crore and Profit: ₹944 Crore in the trailing twelve months. The company's financial strength is evident through its debt-free status, as the Company is almost debt free.
The latest quarterly results for Q1 2025 showcase the company's resilience and growth trajectory. Revenue up 7% and PAT up 8% (YoY); stand at ₹1,422 Crore and ₹233 Crore, respectively. The company's ability to maintain consistent profitability is reflected in its strong margins, with Net profit margins during the year grew from 17.0% in CY23 to 17.3% in CY24.
Castrol India's product portfolio spans across multiple segments, catering to diverse customer needs. Known for its innovation and high-performance products, Castrol offers trusted brands like Castrol CRB, Castrol GTX, Castrol Activ, Castrol MAGNATEC, Castrol EDGE, and Castrol POWER1. These brands have established strong market recognition and customer loyalty over decades of operation.
The company's automotive segment remains its core revenue driver, with A significant rise in sales of two-wheelers and passenger vehicles during the quarter along with steady demand from existing vehicles benefited Castrol, which derives more than 80% of its revenue from automobile lubricants. Beyond automotive applications, the company serves industrial sectors with specialized products including turbine oils and other industrial lubricants.
Castrol India operates one of the most extensive distribution networks in the lubricant industry. The Company has a manufacturing and distribution network in India with three blending plants and a distribution network of approximately 350 distributors that reach consumers and customers through over 1,00,000 retail outlets. This extensive reach ensures product availability across urban and rural markets throughout India.
The company has been strategically expanding its network, with During the quarter, Castrol India expanded its national distribution network to approximately 148,000 outlets across India. This expansion strategy demonstrates the company's commitment to deepening market penetration and accessibility.
For the fiscal year 2024, Castrol India delivered strong financial results. For the full year ended December 31, 2024, the Company registered Revenue from Operations of ₹5,365 Crore, recording a steady growth of 6% over ₹5,075 Crore in the year ended December 31, 2023. The company's profitability metrics remained robust with Profit Before Tax for 2024 stood at ₹1,258 Crore, marking a growth of 6% from ₹1,181 Crore in 2023. The Profit After Tax for 2024 stood at ₹927 Crore, marking a growth of 7% from ₹864 Crore in 2023.
- Q1 2025 Results: Revenue ₹1,422 Crore (7% YoY growth), PAT ₹233 Crore (8% YoY growth).
- FY 2024 Results: Revenue ₹5,365 Crore (6% YoY growth), PAT ₹927 Crore (7% YoY growth).
- Return on Equity: Company has a good return on equity (ROE) track record: 3 Years ROE 43.3%.
- Dividend Yield: Stock is providing a good dividend yield of 3.81%.
Castrol India continues to focus on innovation and market expansion. A key milestone this year is the relaunch of ACTIV, our biggest brand, in the first quarter. "Improving our footprint in rural India is going to be a priority, along with introducing innovative service offerings across regions." The company's strategic emphasis on rural market penetration and product innovation positions it well for future growth.
The company has been investing in expanding its industrial segment capabilities, with The industrial segment saw growth with the expansion of its Condition Monitoring Services business and participation in IMTEX 2025, an industrial manufacturing technology exhibition. This diversification strategy helps reduce dependence on the automotive segment alone and provides additional revenue streams.
Promoter Holding: 51.0% reflects stable ownership structure with majority control remaining with the parent company. Key changes to the Castrol India Ltd shareholding are as follows: Promoter holding in Castrol India Ltd has remained stable at 51.00% as of March 2025 (unchanged from June 2024). This stable shareholding pattern provides confidence to investors about the company's long-term strategic direction.
The company maintains strong operational efficiency with Debt to Equity ratio for CY24 stood at 0.0, consistent with CY23. This debt-free status provides financial flexibility and reduces financial risk for shareholders.
Castrol India's established market leadership, strong financial performance, extensive distribution network, and strategic focus on innovation and expansion make it a significant player in the Indian lubricant industry. The company's ability to consistently deliver growth while maintaining healthy margins demonstrates its operational excellence and market positioning strength.
