Castrol India Unveils Ambitious Growth Strategy: Rural Expansion and Industrial Lubricants in Focus

2 min read     Updated on 13 Aug 2025, 12:17 AM
scanx
Reviewed by
Suketu GalaBy ScanX News Team
whatsapptwittershare
Overview

Castrol India Limited has announced a long-term growth strategy focusing on rural market expansion, industrial lubricants business enhancement, and eco-friendly fluid introduction. The plan includes rural market penetration through the Castrol Activ brand relaunch, expansion of industrial lubricants with Chemical Management Services, and development of eco-friendly fluids. The company is also forming strategic partnerships and undergoing digital transformation. Financial performance shows promising results with revenue at ₹2,919.00 crore (7% YoY growth), EBITDA at ₹657.00 crore (7% YoY growth), and PAT at ₹477.00 crore (6.5% YoY growth) in H1 2025. The company maintains strong shareholder returns with a 3-year average ROCE of 56.30% and ROA of 26.00%.

16570036

*this image is generated using AI for illustrative purposes only.

Castrol India Limited , a leading lubricant manufacturer, has revealed its comprehensive long-term growth strategy, aiming to strengthen its market position and drive sustainable growth across multiple sectors. The company's plan focuses on expanding into rural markets, enhancing its industrial lubricants business, and introducing eco-friendly fluids.

Rural Market Penetration

One of the key pillars of Castrol India's strategy is to tap into the vast potential of rural markets. The company has already made significant strides in this direction, as evidenced by the successful relaunch of its Castrol Activ brand. This move is expected to help Castrol India capture a larger share of the growing rural two-wheeler market, which now dominates the segment.

Industrial Lubricants Push

Castrol India is set to expand its industrial lubricants business, leveraging its wide range of products and localized solutions. The company's Chemical Management Services (CMS) offering is designed to take the hassle of lubrication management off manufacturers' minds, potentially leading to increased efficiency and cost savings for industrial clients.

Eco-Friendly Innovations

In line with the global shift towards sustainability, Castrol India plans to offer eco-friendly fluids. This initiative aligns with the company's commitment to innovation and its readiness to adapt to evolving market trends, including the rise of electric vehicles (EVs).

Strategic Partnerships and Digital Transformation

The growth strategy includes forming partnerships with equipment manufacturers to develop tailored products for evolving mobility platforms. Castrol India is also focusing on enhancing its services and auto care products while strengthening its digital distribution channels.

Financial Performance and Shareholder Returns

The company's strategic initiatives are already showing promising results. In the first half of 2025, Castrol India reported:

Metric Value YoY Change
Revenue ₹2,919.00 crore 7.00%
EBITDA ₹657.00 crore 7.00%
PAT ₹477.00 crore 6.50%
EPS ₹4.83 -

Castrol India has maintained a strong focus on shareholder wealth creation, with a 3-year average Return on Capital Employed (ROCE) of 56.30% and a 3-year average Return on Assets (ROA) of 26.00%.

Management's Perspective

Kedar Lele, Managing Director of Castrol India Limited, expressed optimism about the company's future, stating, "We're optimistic about what lies ahead. Industrial is a long-term growth area for us, and we've seen encouraging traction in the first half—new customers, stronger momentum, and more locally-made products. At the same time, our rural strategy is playing out well, and we'll keep strengthening it in the coming months."

As Castrol India implements its multi-faceted growth strategy, the company aims to boost sales volume, maintain profit margins, and continue delivering returns to shareholders. With its strong brand legacy and forward-looking approach, Castrol India appears well-positioned to navigate the changing landscape of the lubricants industry and capitalize on emerging opportunities in both rural and industrial sectors.

Historical Stock Returns for Castrol

1 Day5 Days1 Month6 Months1 Year5 Years
-1.36%-4.39%-7.86%+4.42%-16.37%+68.19%
like19
dislike

Castrol India Reports Robust Q2 Results with 7% Revenue Growth

2 min read     Updated on 11 Aug 2025, 02:55 PM
scanx
Reviewed by
Naman SharmaBy ScanX News Team
whatsapptwittershare
Overview

Castrol India Limited announced robust Q2 financial results, with revenue increasing 7% YoY to ₹1,497.00 crores. EBITDA grew 8% to ₹349.00 crores, and PAT rose 5% to ₹244.00 crores. The company achieved 8% overall volume growth, maintaining market share above 20%. An interim dividend of ₹3.50 per share was recommended. Castrol expanded its retail presence to over 160,000 outlets and introduced new products and services. The company's digital initiatives and sustainability efforts show progress, with its mechanic Connect app reaching over 1 million users.

16449920

*this image is generated using AI for illustrative purposes only.

Castrol India Limited , a leading lubricant manufacturer, has announced strong financial results for the second quarter, demonstrating resilience and growth across various segments.

Financial Highlights

Castrol India reported a 7% year-on-year increase in revenue from operations, reaching ₹1,497.00 crores for Q2. The company's EBITDA grew by 8% to ₹349.00 crores, while Profit After Tax (PAT) rose by 5% to ₹244.00 crores.

For the first half, the company's performance remained solid:

Metric H1 Growth (YoY)
Revenue ₹2,919.00 7%
EBITDA ₹657.00 7%
PAT ₹477.00 6.5%

The Board of Directors has recommended an interim dividend of ₹3.50 per share, subject to shareholders' approval.

Volume Growth and Market Share

Castrol India achieved an impressive 8% overall volume growth in Q2. The company maintained its market share above 20%, with notable performances across various segments:

  • Industrial segment: 13% growth
  • Rural expansion: 12% growth
  • Bikes and cars: High single-digit growth
  • Commercial vehicles: 8% growth

Segment-wise Performance

The company's Q2 sales mix is as follows:

  • Personal mobility: 43%
  • Commercial and industrial: 44%
  • Industrial: 12%

Expansion and Innovation

Castrol India has expanded its retail presence to over 160,000 outlets nationwide, including:

  • 32,000+ bike points
  • 11,000+ multi-brand car workshops
  • 730 Castrol auto service network workshops across 340 cities

The company has introduced new products and services:

  • Locally produced metalworking fluids: Hysol MB 50 and Hysol 20 XBB range
  • Chemical Management Services (CMS) operational at multiple sites
  • Auto Care product range available across e-commerce, modern trade, and over 50,000 outlets

Digital Initiatives

Castrol's flagship mechanic Connect app, Fast Scan, is now used by over 1 million mechanics in India, with some days recording over 200,000 transactions.

Sustainability Efforts

The company has developed and commercially produced first-of-its-kind RRBO-based engine oils for BS-IV vehicles in partnership with a leading OEM, advancing its sustainability and circularity agenda.

Management Commentary

Kedar Lele, Managing Director of Castrol India Limited, stated, "Our continued focus on innovation across products and services, broadening our distribution footprint, and investment in our brands has translated into growth in volumes despite the macroeconomic challenges and volatilities."

Looking ahead, Castrol India remains focused on delivering high-quality products and services to the automotive and industrial sectors, with a particular emphasis on leveraging opportunities in industrial Bharat and service-driven delivery.

The company's strong performance in the first half provides an optimistic outlook for the full year, as it continues to expand its network and make its products more accessible and affordable for consumers across India.

Historical Stock Returns for Castrol

1 Day5 Days1 Month6 Months1 Year5 Years
-1.36%-4.39%-7.86%+4.42%-16.37%+68.19%
like18
dislike
More News on Castrol India
Explore Other Articles
205.28
-2.83
(-1.36%)