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CASTROL INDIA 2024-25 Annual Report Analysis
Mon, 9 Mar
In this Report:
CASTROL INDIA has announced its results for the year ended December 2025. Let us have a look at the detailed performance review of the company during FY24-25.
CASTROL INDIA Income Statement Analysis
- Operating income during the year rose 6.6% on a year-on-year (YoY) basis.
- The company's operating profit increased by 3.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 23.2% in CY25 as against 23.8% in CY24.
- Depreciation charges increased by 1.1% and finance costs decreased by 1.0% YoY, respectively.
- Other income declined by 23.9% YoY.
- Net profit for the year grew by 2.4% YoY.
- Net profit margins during the year declined from 17.3% in CY24 to 16.6% in CY25.
CASTROL INDIA Income Statement 2024-25
| No. of Mths Year Ending | 12 Dec-24* | 12 Dec-25* | % Change | |
|---|---|---|---|---|
| Net Sales | Rs m | 53,649 | 57,215 | 6.6% |
| Other income | Rs m | 886 | 674 | -23.9% |
| Total Revenues | Rs m | 54,535 | 57,889 | 6.2% |
| Gross profit | Rs m | 12,782 | 13,250 | 3.7% |
| Depreciation | Rs m | 998 | 1,008 | 1.1% |
| Interest | Rs m | 94 | 93 | -1.0% |
| Profit before tax | Rs m | 12,576 | 12,823 | 2.0% |
| Tax | Rs m | 3,304 | 3,324 | 0.6% |
| Profit after tax | Rs m | 9,272 | 9,499 | 2.4% |
| Gross profit margin | % | 23.8 | 23.2 | |
| Effective tax rate | % | 26.3 | 25.9 | |
| Net profit margin | % | 17.3 | 16.6 | |
Interim results exclude extraordinary / exceptional items
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CASTROL INDIA Balance Sheet Analysis
- The company's current liabilities during CY25 stood at Rs 14 billion as compared to Rs 13 billion in CY24, thereby witnessing an increase of 10.9%.
- Current assets fell 9% and stood at Rs 23 billion, while fixed assets fell 3% and stood at Rs 10 billion in CY25.
- Overall, the total assets and liabilities for CY25 stood at Rs 33 billion as against Rs 36 billion during CY24, thereby witnessing a fall of 7%.
CASTROL INDIA Balance Sheet as on December 2025
| No. of Mths Year Ending | 12 Dec-24* | 12 Dec-25* | % Change | |
|---|---|---|---|---|
| Networth | Rs m | 21,774 | 17,970 | -17.5 |
| Current Liabilities | Rs m | 12,702 | 14,082 | 10.9 |
| Long-term Debt | Rs m | 0 | 0 | 0.0 |
| Total Liabilities | Rs m | 35,503 | 32,992 | -7.1 |
| Current assets | Rs m | 25,628 | 23,447 | -8.5 |
| Fixed Assets | Rs m | 9,875 | 9,545 | -3.3 |
| Total Assets | Rs m | 35,503 | 32,992 | -7.1 |
Interim results exclude extraordinary / exceptional items
CASTROL INDIA Cash Flow Statement Analysis
- CASTROL INDIA's cash flow from operating activities (CFO) during CY25 stood at Rs 11 billion, an improvement of 4.4% on a YoY basis.
- Cash flow from investing activities (CFI) during CY25 stood at Rs 2 billion on a YoY basis.
- Cash flow from financial activities (CFF) during CY25 stood at Rs -13 billion on a YoY basis.
- Overall, net cash flows for the company during CY25 stood at Rs -263 million from the Rs -403 million net cash flows seen during CY24.
CASTROL INDIA Cash Flow Statement 2024-25
| Particulars | No. of months | 12 | 12 | % Change |
|---|---|---|---|---|
| Year Ending | Dec-24 | Dec-25 | ||
| Cash Flow from Operating Activities | Rs m | 10,441 | 10,901 | 4.4% |
| Cash Flow from Investing Activities | Rs m | -2,669 | 1,986 | - |
| Cash Flow from Financing Activities | Rs m | -8,191 | -13,151 | - |
| Net Cash Flow | Rs m | -403 | -263 | - |
Interim results exclude extraordinary / exceptional items
Current Valuations for CASTROL INDIA
- The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.6, an improvement from the EPS of Rs 9.4 recorded last year.
- The price to earnings (P/E) ratio, at the current price of Rs 192.4, stands at 20.0 times its trailing twelve months earnings.
- The price to book value (P/BV) ratio at current price levels stands at 10.6 times, while the price to sales ratio stands at 3.3 times.
- The company's price to cash flow (P/CF) ratio stood at 19.5 times its end-of-year operating cash flow earnings.
Per Share Data/Valuations
| No. of Mths Year Ending | 12 Dec-24* | 12 Dec-25* | |
|---|---|---|---|
| Sales per share (Unadj.) | Rs | 54.2 | 57.8 |
| TTM Earnings per share | Rs | 9.4 | 9.6 |
| Diluted earnings per share | Rs | 9.4 | 9.6 |
| Price to Cash Flow | x | 19.0 | 19.5 |
| TTM P/E ratio | x | 21.0 | 20.0 |
| Price / Book Value ratio | x | 10.2 | 11.4 |
| Market Cap | Rs m | 222,849 | 205,144 |
| Dividends per share (Unadj.) | Rs | 13.0 | 8.8 |
Interim results exclude extraordinary / exceptional items
Ratio Analysis for CASTROL INDIA
Solvency Ratios
Profitability Ratios
Current Ratio: The company's current ratio deteriorated and stood at 1.7x during CY25, from 2.0x during CY24. The current ratio measures the company's ability to pay short-term and long-term obligations.
Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 139.0x during CY25, from 135.1x during CY24. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.
Return on Equity (ROE): The ROE for the company improved and stood at 52.9% during CY25, from 42.6% during CY25. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.
Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 71.9% during CY25, from 58.2% during CY24. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.
Return on Assets (ROA): The ROA of the company improved and stood at 29.1% during CY25, from 26.4% during CY24. The ROA measures how efficiently the company uses its assets to generate earnings.
Key Ratio Analysis
| No. of Mths Year Ending | 12 Dec-24* | 12 Dec-25* | |
|---|---|---|---|
| Current ratio | x | 2.0 | 1.7 |
| Debtors’ Days | Days | 3 | 3 |
| Interest coverage | x | 135.1 | 139.0 |
| Debt to equity ratio | x | 0.0 | 0.0 |
| Return on assets | % | 26.4 | 29.1 |
| Return on equity | % | 42.6 | 52.9 |
| Return on capital employed | % | 58.2 | 71.9 |
Interim results exclude extraordinary / exceptional items
Management Discussion and Analysis of Recent Performance
In the latest strategic disclosures and the Management Discussion and Analysis (MD&A) outlining the trajectory for the current period, the management of Castrol India emphasized a year of resilient financial performance and robust volume growth. Despite the volatility in global base oil prices and inflationary pressures on additives, the company reported a steady increase in its top-line revenue, crossing the significant milestone of INR 5,000 Crores. Management attributed this success to a balanced approach between volume growth, price realizations, and cost optimization.
The company highlights several key pillars of its recent performance:
- Personal Mobility Growth: The management noted strong demand in the passenger car motor oil (PCMO) and two-wheeler motor oil (2WMO) segments. This was driven by the successful expansion of the Castrol MAGNATEC and Castrol POWER1 brands, which continue to hold premium positioning in the Indian market.
- Industrial and Commercial Success: The Commercial Vehicle Motor Oil (CVMO) segment remained a significant contributor, supported by the recovery in the construction and logistics sectors. Management highlighted the growth of the Castrol CRB range, which focuses on engine protection and longevity for heavy-duty applications.
- Supply Chain Efficiency: Management emphasized their agility in supply chain management, which allowed the company to maintain service levels despite global logistical disruptions. The focus on localizing raw material sourcing has helped in mitigating some of the currency fluctuation risks.
- Financial Strength: The company continues to maintain a debt-free balance sheet with a strong cash position, allowing for consistent dividend payouts to shareholders while simultaneously funding capital expenditures for future growth.
Strategic Focus on New Business Ventures
The management has been vocal about transitioning from a traditional lubricant company to a broader mobility and energy solutions provider. The MD&A highlights several high-growth new business ventures designed to future-proof the organization against the shifting automotive landscape.
Expansion of Service and Maintenance (S&M) Network
Castrol India is aggressively expanding its footprint in the service and maintenance sector to capture more value from the post-warranty vehicle segment. This includes:
- Castrol Auto Service (CAS): The network has expanded significantly, providing standardized and high-quality multi-brand car servicing. Management views this as a critical touchpoint to ensure brand loyalty.
- Castrol Bike Points: With over 28,000 certified bike points across the country, the company is leveraging its deep distribution reach to provide specialized services to two-wheeler owners.
Castrol ON - The EV Fluids Frontier
As the Indian automotive industry pivots toward electrification, management has highlighted Castrol ON as a cornerstone of their new business strategy. These specialized fluids are designed for electric vehicles (EVs) to manage thermal regulation, friction reduction, and gear protection. Management noted that they are collaborating with leading Original Equipment Manufacturers (OEMs) in India to integrate Castrol ON fluids into the next generation of electric cars and two-wheelers.
Thermal Management for Data Centers
A significant new venture highlighted in the management commentary is the entry into immersion cooling for data centers. As data centers consume massive amounts of energy for cooling, Castrol is leveraging its expertise in liquid engineering to provide dielectric cooling fluids. This venture represents a diversification away from the internal combustion engine (ICE) market and into the rapidly growing digital infrastructure sector.
Strategic Partnerships
The management emphasized the importance of their partnership with ki Mobility Solutions. This collaboration aims to create a holistic digital ecosystem for the aftermarket, offering integrated service solutions and digital platforms for mechanics and workshops. This venture is expected to enhance the company's reach into the unorganized service sector, providing a digital edge to their physical distribution network.
Sustainability and ESG Goals
Integral to their new business approach is the PATH360 sustainability strategy. Management highlighted initiatives such as re-refined base oils and the use of recycled plastic packaging. By focusing on carbon reduction and waste management, the company aims to align its new business ventures with global environmental standards, ensuring long-term viability in a decarbonizing economy.
Source of data: Castrol India Investor Relations - Annual Reports
To see how CASTROL INDIA has performed over the last 5 years, please visit here.
CASTROL INDIA Share Price Performance
Over the last one year, CASTROL INDIA share price has moved up from Rs 186.0 to Rs 203.0, registering a gain of Rs 17.0 or around 9.1%.
Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 25,133.5 (up 0.3%). Over the last one year it has moved down from 27,644.5 to 25,133.5, a loss of 2,511 points (down 9.1%).
Overall, the S&P BSE SENSEX is up 6.1% over the year.
(To know more, check out historical annual results for CASTROL INDIA and quarterly results for CASTROL INDIA)
Annual Report FAQs
What is the current share price of CASTROL INDIA?
CASTROL INDIA currently trades at Rs 187.5 per share. You can check out the latest share price performance of CASTROL INDIA here...
What was the revenue of CASTROL INDIA in CY25? How does it compare to earlier years?
The revenues of CASTROL INDIA stood at Rs 57,889 m in CY25, which was up 6.2% compared to Rs 54,535 m reported in CY24.
CASTROL INDIA's revenue has grown from Rs 42,405 m in CY21 to Rs 57,889 m in CY25.
Over the past 5 years, the revenue of CASTROL INDIA has grown at a CAGR of 8.1%.
What was the net profit of CASTROL INDIA in CY25? How does it compare to earlier years?
The net profit of CASTROL INDIA stood at Rs 9,499 m in CY25, which was up 2.4% compared to Rs 9,272 m reported in CY24.
This compares to a net profit of Rs 8,641 m in CY23 and a net profit of Rs 8,152 m in CY22.
Over the past 5 years, CASTROL INDIA net profit has grown at a CAGR of 5.8%.
What does the cash flow statement of CASTROL INDIA reveal?
The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.
This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.
The cash flow statement of CASTROL INDIA reveals:
- Cash flow from operations increased in CY25 and stood at Rs 10,901 m as compared to Rs 10,441 m in CY24.
- Cash flow from investments increased in CY25 and stood at Rs 1,986 m as compared to Rs -2,669 m in CY24.
- Cash flow from financial activity decreased in CY25 and stood at Rs -13,151 m as compared to Rs -8,191 m in CY24.
Here's the cash flow statement of CASTROL INDIA for the past 5 years.
| (Rs m) | CY21 | CY22 | CY23 | CY24 | CY25 |
|---|---|---|---|---|---|
| From Operations | 6,302 | 9,156 | 8,530 | 10,441 | 10,901 |
| From Investments | -831 | 620 | -2,513 | -2,669 | 1,986 |
| From Financial Activity | -5,576 | -6,075 | -6,638 | -8,191 | -13,151 |
| Net Cashflow | -105 | 3,703 | -613 | -403 | -263 |
What does the Key Ratio analysis of CASTROL INDIA reveal?
Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.
The ratio/financial analysis of CASTROL INDIA reveals:
- Operating profit margins witnessed a fall and stood at 23.2% in CY25 as against 23.8% in CY24.
- Net profit margins declined from 17.3% in CY24 to 16.6% in CY25.
- Debt to Equity ratio for CY25 stood at 0.0 as compared to 0.0 in CY24.
Here's the ratio/financial analysis of CASTROL INDIA for the past 5 years.
| CY21 | CY22 | CY23 | CY24 | CY25 | |
|---|---|---|---|---|---|
| Operating Profit Margin (%) | 25.4 | 23.3 | 23.6 | 23.8 | 23.2 |
| Net Profit Margin (%) | 18.1 | 17.1 | 17.0 | 17.3 | 16.6 |
| Debt to Equity Ratio (x) | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
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