This article first appeared on GuruFocus .
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Revenue from Operations:INR 1,363 crores, a 6% year-on-year growth.
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Volume Growth:7% increase during the quarter.
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EBITDA:INR 323 crores, up by INR 37 crores from the previous year.
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Profit After Tax:INR 228 crores, a 10% increase year-on-year.
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9-Month Revenue:INR 4,282 crores, up 7% year-on-year.
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9-Month EBITDA:INR 980 crores, a 9% increase compared to the previous year.
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9-Month Profit After Tax:INR 705 crores, up 8% year-on-year.
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Year-to-Date Volume Growth:8% increase.
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Service Network Expansion:Over 750 Castrol Auto Service centers across 300 cities, up from about 580 a year ago.
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Warning! GuruFocus has detected 4 Warning Signs with BOM:500870.
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Release Date: November 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Castrol India Ltd ( BOM:500870 ) reported a 6% year-on-year revenue growth for Q3 2025, driven by a 7% increase in volumes.
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EBITDA for the quarter increased by INR37 crores to INR323 crores, while profit after tax rose by 10% compared to the same quarter last year.
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The company has expanded its service network to over 750 Castrol Auto Service centers across 300 cities, enhancing customer reach.
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Castrol India Ltd ( BOM:500870 ) continues to invest in digital capabilities and innovation, maintaining a robust balance sheet to navigate market volatility.
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The company is experiencing double-digit growth in its industrial segment, which is less affected by the transition to electric vehicles.
Negative Points
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Market conditions remain volatile with base oil fluctuations and foreign exchange movements adding pressure.
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The industrial segment, while growing, typically offers lower margins compared to automotive lubricants.
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The transition to electric vehicles poses a challenge as EVs require fewer lubricants compared to traditional internal combustion engines.
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The company's growth strategy in industrial lubricants may not match the profitability levels of its automotive segment.
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There is uncertainty regarding the strategic review of Castrol's global business, which could impact future operations.
Q & A Highlights
Q: With the upcoming leadership change, should investors expect a shift in company direction or a continuation of current strategies? A: Kedar Lele, Managing Director, assured that there will be no change in strategy with the new leadership. The focus will remain on executing the current strategy, which has shown six quarters of growth momentum, balancing volume growth, profitability, and innovation.
Q: Can you provide an update on the investment in ki Mobility Solutions and its performance? A: Kedar Lele explained that the investment in ki Mobility Solutions is performing as expected, with the company expanding its multi-brand service network and digital services. The investment continues to meet revenue and learning expectations.
Q: How does the company plan to maintain margins with the growth of industrial lubricants, given their lower profitability compared to automotive lubricants? A: Kedar Lele noted that while industrial lubricants have lower margins, the company focuses on high-performance lubricants and services like chemical management to balance growth and profitability. Industrial lubricants will not surpass automotive in volume but are a strategic focus to protect against EV transition impacts.
Q: What is the company's strategy regarding EV fluids, given the lower lubricant usage in electric vehicles compared to traditional engines? A: Kedar Lele highlighted that EVs still require fluids like transmission fluids and coolants. The company is committed to ensuring its products are available for the EV transition, with a focus on maintaining comparable customer lifetime value.
Q: Can you provide insights into the strategic review of Castrol and its potential impact on India operations? A: Kedar Lele stated that the strategic review by BP aims to accelerate Castrol's value delivery. The review considers growth in core mobility, industrial lubricants, and new sectors like data center fluids. The outcome will focus on value creation and growth acceleration.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
