Castrol India Limited

Castrol India reported its eighth consecutive quarter of volume-led growth, closing FY25 with the highest-ever revenue. Q4 FY25 revenue grew 6.4% year-on-year to INR 1,440 crores, with volume increasing by 8%. For the full year, revenue from operations rose 7% to INR 5,722 crores, and volume grew 8% year-on-year. EBITDA for FY25 stood at INR 1,348 crores, a 5% increase, achieving a 24% EBITDA margin, at the top end of the company's guidance.

The company's growth was supported by strong demand in the personal mobility sector, scale-up in the industrial business, and deeper distribution reach, particularly in rural India. The industrial portfolio and rural distribution delivered double-digit growth. Castrol India gained 50 basis points in market share within the automotive segment, reaching the early 20s overall. This reflects disciplined execution, customer focus, proactive cost management, and investment in brand building and distribution expansion.

Castrol India moved at pace on innovation, launching new products and localizing close to 20 products across automotive, industrial, and specialty ranges. Key launches included advanced Hysol and Alusol industrial products, the new Spheerol range, and an upgrade to Castrol MAGNATEC for personal mobility cars. New products were also introduced in the Auto Care range, and the company continues to strengthen its EV fluid offerings like HYSPEC for hybrids.

The company significantly expanded its market reach, with its distribution network now covering over 150,000 outlets nationwide. The Castrol Auto Care portfolio is available across e-commerce, modern trade, and 67,000 physical retail stores. The service network grew to 750 Castrol Auto Service points, 30,000 bike workshops, and 11,000 multi-brand retail outlets. Rural distribution scaled up to over 40,000 rural outlets with 500 Rural Service Express installations.

Castrol India continues to strengthen relationships with key OEMs, working with major players like Tatas (commercial vehicle and passenger cars) and Maruti Suzuki. The company also works with 2-wheeler OEMs and EV manufacturers like Tata Passenger Electric Car. A significant development was the signing of an MOU with VinFast Auto India to support their EV aftersales at Castrol Service Centers, further solidifying Castrol's position in the evolving EV market.

The company imports slightly more than half of its base oil, with the rest sourced locally. Castrol India aims to increase local procurement to save on freight and reduce lead times. A Memorandum of Understanding (MOU) was signed with HPCL to explore and develop a re-refined base oil (RRBO) ecosystem in India, addressing challenges in collection and last-mile logistics. This initiative is in its early stages but aims to foster a more vibrant RRBO industry.

Castrol India views the data center market as a future growth opportunity, particularly for immersion cooling fluids. While currently very small in India, the market is growing fast, and trials are ongoing. The company leverages its global technology centers and local expertise in Patalganga to optimize products for Indian environmental conditions. This technology involves dielectric fluids that cool servers efficiently, a shift from traditional air conditioning.