Castrol India (500870) Q3 2025 earnings summary

Executive summary

• Achieved steady, profitable growth in Q3 2025, with revenue from operations up 6% year-over-year to ₹1,363 crore, EBITDA up 13%, and PAT up 10% to ₹228 crore, driven by volume-led expansion and margin stability.

• For the nine months ended September 2025, revenue rose 7% year-over-year to ₹4,282 crore, EBITDA increased 9% to ₹980 crore, and PAT climbed 8% to ₹705 crore, with volumes up 8%.

• Expanded reach in rural and industrial markets, maintaining market leadership across key categories and growing distribution to ~150,000 outlets and over 750 service centers.

• Launched new products, including Castrol All-in-One Helmet Cleaner, upgraded Castrol Magnatec, and EV fluids, reinforcing the shift toward a full-service auto care brand.

• Signed a significant MOU with VinFast Auto to support EV after-sales service in India, leveraging Castrol's extensive workshop network.

Financial highlights

• Q3 2025 revenue from operations: ₹1,363 crore (up 6% YoY); EBITDA: ₹323 crore (up 13% YoY); PAT: ₹228 crore (up 10% YoY); volumes up 7%.

• Nine months 2025 revenue: ₹4,282 crore (up 7% YoY); EBITDA: ₹980 crore (up 9% YoY); PAT: ₹705 crore (up 8% YoY); volumes up 8%.

• EPS for Q3 2025: ₹2.30; for nine months: ₹7.13.

• Cost per liter of lubricant reduced by about 5% in the quarter, supporting margin improvement.

• Cost of goods sold grew only 2%-3% versus 7%-8% volume growth in the quarter.

Outlook and guidance

• Remains optimistic about continued volume growth as India's vehicle park expands and the economy stays robust.

• Focused on deepening rural and industrial market penetration, expanding service offerings, and preparing for the EV transition.

• No change in strategic direction expected with upcoming leadership transition; ongoing strategy to continue.

• EBITDA margin guidance maintained at 21%-24%, with a focus on sustaining current performance.

• Management remains vigilant amid forex volatility and base oil price fluctuations, emphasizing disciplined financial management and ongoing investment in brands and innovation.