Castrol India (500870) Q4 2025 earnings summary

Executive summary

• Achieved record revenue in FY25, marking eight consecutive quarters of volume-led growth and increased market share in automotive lubricants, driven by expansion in core automotive and industrial businesses.

• Full-year volume grew 8% year-on-year, supported by strong demand in personal mobility, industrial business expansion, and rural distribution.

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

• Continued innovation with nearly 20 new or localized products and strategic partnerships with OEMs and EV players.

• Board recommended a final dividend of INR 5.25 per share, bringing the total FY25 dividend to INR 8.75 per share.

Financial highlights

• FY2025 revenue from operations rose 7% year-on-year to INR 5,722 crores; EBITDA increased 5% year-on-year to INR 1,348 crores.

• Profit after tax for FY25 reached INR 950 crores, up from INR 927 crores in FY24.

• Q4 revenue grew 6.4% year-on-year 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.

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

• Cash from operations was robust at INR 1,090 crores, supporting a strong balance sheet and shareholder returns.

Outlook and guidance

• Expects gradual evolution in India's mobility landscape, with ICE and hybrids remaining dominant.

• Anticipates continued growth in personal mobility and industrial segments, supported by economic and government initiatives.

• Focus remains on strengthening core business, supply chain localization, and growth in adjacent services and markets.

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