* Castrol India Limited reported a steady performance for 3Q FY 2025 and the nine months ended 30 September 2025. * Financial Highlights (3Q FY 2025): * Revenue from operations: ₹1,363 crore, a 6% year-on-year (YoY) increase, driven by 7% volume growth. * EBITDA: ₹323 crore, up ₹37 crore YoY. * Profit after tax: ₹228 crore, a 10% increase YoY. * Volume in liters: 60 million liters in Q3, following 63 million in Q1 and 66 million in Q2. * Cost of goods sold (COGS) per liter decreased by approximately 5% in Q3 and 2-3% on a nine-month basis due to optimization efforts. * Financial Highlights (9M FY 2025): * Revenue from operations: ₹4,282 crore, up 7% YoY. * EBITDA: ₹980 crore, up 9% YoY. * Profit after tax: ₹705 crore, up 8% YoY. * Year-to-date volume growth: 8%. * Strategic Initiatives & Business Developments: * Launched Castrol All-in-One Helmet Cleaner, an innovative foam spray solution for 2-wheeler riders. * Signed an MoU with VinFast Auto, a Vietnamese EV manufacturer, to support their India foray by leveraging Castrol’s workshop network for aftersales service. * Introduced EV fluids under the Castrol ON range and is localizing EV transmission and thermal fluids for the Indian environment. * Upgraded Castrol MAGNATEC engine oil to API SQ specification. * Expanded distribution reach to over 150,000 retail outlets, including 40,000+ in rural India, and 500 Castrol oil change kiosks (rural express). * Increased branded service network to over 750 Castrol Auto Service (CAS) centers across 300 cities (up from 580 a year ago), alongside 33,000 independent bike workshops and 12,000 multi-brand workshops. * Continued strong marketing and customer engagement initiatives, including Super Mechanic Saptah. * Management Commentary: * Managing Director Mr. Kedar Lele stated the company delivered "another quarter of steady, consistent growth backed by a strong focus on profitability and a portfolio that continues to work hard for us." He emphasized accelerating volume growth, market share gains, and maintaining profitability. * CFO Ms. Mrinalini Srinivasan noted volatile market conditions with base oil fluctuations and forex movements, but the company adapted through innovation and operational excellence. * Mr. Lele confirmed that Mr. Saugata Basuray will take over as Managing Director from 1 January 2026, and the company's strategy is not expected to change significantly as Mr. Basuray was part of the leadership team that designed the current strategy. * The company's investment in ki Mobility Solutions is maintained, providing learning and revenue from lubricant sales and commissions. * Industrial lubricants, which constitute 12-14% of volumes and are growing in double digits, focus on high-performance products, but have lower gross margins compared to automotive lubricants. * Regarding EV fluids, the company believes the customer lifetime value for fluids in an EV can be comparable to ICE lubricants, and they are preparing for the future of mobility. * About 50-55% of base oil is imported; while prices are globally landed, local sourcing offers lead time and logistics benefits. * Rural volumes contribute 25-30% of B2C numbers and are growing in double digits. * BP's global strategic review of Castrol, announced in February 2025, continues, with data being supplied to a data room for potential investors. * Outlook: The company remains optimistic, anticipating significant runway for volume growth from India's expanding vehicle park and strong economy, while being vigilant about macroeconomic headwinds and technological shifts.
