Castrol India (500870) Q4 2025 earnings summary

Executive summary

• Achieved record-high revenue in FY25 with eight consecutive quarters of volume-led growth and an 8% YoY volume increase, driven by core automotive and industrial business expansion.

• Distribution network expanded to over 150,000 outlets and service network to over 750 centres, with significant rural and service point growth.

• Continued innovation with nearly 20 new localized products and strategic collaborations with major OEMs and EV players.

• Board recommended a final dividend of INR 5.25 per share, totaling INR 8.75 for FY25.

Financial highlights

• FY25 revenue from operations rose 7% YoY to INR 5,722 crores; EBITDA increased 5% YoY to INR 1,348 crores; profit after tax reached INR 950 crores, up from INR 927 crores.

• Q4 FY25 revenue grew 6.4% YoY to INR 1,440 crores; Q4 PAT was INR 245 crores, up 8% sequentially but down from INR 271 crores YoY due to one-time labor code changes.

• Full-year EBITDA margin remained healthy at 24%.

• EPS for FY25 stood at INR 9.60, up from INR 9.37 in FY24.

• Robust cash from operations and strong balance sheet maintained, with cash and cash equivalents at INR 427 crores as of year-end.

Outlook and guidance

• Expect steady evolution in India's mobility landscape, with ICE and hybrids remaining dominant in the medium term.

• Guidance to grow volume at 1.5-2 times market growth rate, targeting 1.5%-4% growth.

• Focus on strengthening core automotive, accelerating supply chain localization, and expanding into adjacencies like services and solutions.

• EBITDA margin guidance maintained at 21%-24%.