Castrol India has recommended a final dividend of Rs 5.25 per share for its shareholders, bringing the total dividend for the year to Rs 8.75 with a payout ratio of 90%. The company has also outlined its strategic outlook, expecting its industrial business segment to grow more than the automotive segment by 2030.

Dividend Recommendation Details

The company's board has formally recommended the final dividend payment, demonstrating strong capital allocation and commitment to shareholder returns. The comprehensive dividend structure reflects the company's robust financial performance and disciplined approach to profit distribution.

Business Growth Strategy

Castrol India has set clear expectations for its business segments, anticipating that the industrial business will experience higher growth rates compared to the automotive segment by 2030. This strategic outlook indicates the company's focus on diversifying its revenue streams and capitalizing on industrial sector opportunities.

Shareholder Value Creation

The dividend recommendation of Rs 5.25 per share, combined with the total annual distribution of Rs 8.75, represents a significant return to shareholders. The 90% payout ratio demonstrates the company's commitment to sharing profits while maintaining adequate reserves for future growth initiatives.

This comprehensive approach to dividend distribution, coupled with strategic business planning, positions Castrol India as a company focused on delivering consistent shareholder value while preparing for future market opportunities in both automotive and industrial segments.

Castrol India Limited has published its audited financial results for the quarter and year ended December 31, 2025, showing mixed performance with revenue growth offset by margin pressures. The lubricants manufacturer demonstrated resilience in top-line growth while facing profitability challenges in a competitive market environment.

Financial Performance Overview

The company's quarterly performance reflects the ongoing dynamics in the lubricants sector. Revenue from operations reached ₹1,439.92 crore for Q3 FY26, representing a 6.36% increase from ₹1,353.89 crore in the corresponding quarter of the previous year. However, profitability metrics showed pressure with net profit declining to ₹244.67 crore from ₹271.39 crore year-on-year.

Annual Performance Highlights

For the full year ended December 31, 2025, Castrol India reported revenue from operations of ₹5,721.50 crore compared to ₹5,364.85 crore in the previous year, marking a 6.65% annual growth. Net profit after tax for the year stood at ₹949.93 crore against ₹927.23 crore in the previous year, showing a 2.45% increase.

Dividend Declaration and Corporate Actions

The Board of Directors has recommended a final dividend of ₹5.25 per share for the financial year, compared to ₹9.50 per share in the previous year (which included a special dividend of ₹4.50 per share). This final dividend is in addition to the interim dividend of ₹3.50 per share already paid during the year. The record date for the final dividend has been set as March 23, 2026, with payment scheduled on or before April 27, 2026.

Regulatory and Operational Updates

The company has recognized an exceptional item of ₹22.53 crore related to incremental estimated obligations under the New Labour Codes notified by the Government of India, effective November 21, 2025. This regulatory-driven impact reflects the company's compliance with evolving labor regulations and their financial implications on employee-related provisions.

Strategic Developments

In December 2025, bp plc, the ultimate holding company, announced an agreement to sell a 65% shareholding in Castrol's global lubricants business to Stonepeak at an enterprise value of approximately USD 10 billion, subject to legal clearances. Under this arrangement, bp will retain a 35% minority interest, with transaction completion expected by the end of 2026, subject to customary approvals.