Castrol India Limited — Q3 FY26
Castrol India delivered a strong Q4 FY25 with revenue of ₹1,440 crore (+6.4% YoY) and PAT of ₹245 crore, driven by 8% volume growth and market share gains in automotive lubricants.
bullish
high
Financial stats pending filing verification
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
65%Questions answered1Evaded / deflected10Questions auditedMixedNumbers vs filing
Answered
Low priority
Are lubricant additives sourced internally or from external suppliers?
Asked by Naim Patel, Bastion Research
Management clearly stated they do both internal and external sourcing.
Read the exchange
Question
So when we use lubricant additives in our products, so are these lubricant additives sourced internally or do we source it from some external supplier?
Shweta (not specified role)
We have a variety... certain additives core molecules that we develop internally... and there are certain additives which we procure from our global partners... We do both.
Partial answer
Low priority
What is the mix of internal vs external additive sourcing?
Asked by Naim Patel, Bastion Research
Gave directional answer but no quantitative split.
no specific percentage given
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Question
And is there a mix like how much of it is an internal or how much of it is external?
Shweta (not specified role)
A majority of that is something that we source from our strategic partners.
Partial answer
High priority
What is the volume number for the quarter in million liters?
Asked by Nitan Tari, Philip Capital
Initially refused, then provided a ballpark range after follow-up.
initially declined, then gave ballpark
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Question
Can you give me the volume number for the quarter in million liters?
Lini (not specified role)
While specifics of how many millers we don't usually share... upwards of 60 milliliters in all our quarters... about a 63 64 would be a good ballpark for this quarter.
Answered
High priority
Why is margin compressing despite volume growth?
Asked by Nitan Tari, Philip Capital
Explained margin dilution due to mix shift and investments.
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Question
Our operating profits have grown by about 5 and a half% whereas volume growth has been at 8%... what are the key reasons for that and how should we see this number going ahead?
Lini (not specified role)
We've given our guidance as operating margin in the range of 21 to 24%. As we close the financial year 25, we actually closed it right at the top of range... there is a dilution... as we change our business mix towards the industrial side... we have chosen to invest in the business.
Partial answer
Medium priority
Do you see data center demand as a growth opportunity?
Asked by Nitan Tari, Philip Capital
Acknowledged opportunity but gave no numbers or timeline.
no quantitative projection
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Question
Is data center demand something which you think is a reasonable one which can come up in the future?
Lini and Ash (not specified roles)
It is indeed very very small for us right now... we do think it's a good opportunity for the future... we have trials that are ongoing... still at a very early stage to project.
Answered
Medium priority
Are you fine with current plant capacity or need expansion?
Asked by Sabri Hazarika, MK Global Financial Services
Clearly stated current capacity is sufficient for near term.
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Question
Looking at your annual volume run rate of say around 240 to 50 million liters, are you fine with the current capacity of your plant or is there a thought process of expanding capacity?
Ash (not specified role)
We feel that we are adequately equipped to release capacity... we'll be able to support the growth for the next couple of years at least.
Partial answer
Medium priority
Is 90-91% dividend payout sustainable?
Asked by Sabri Hazarika, MK Global Financial Services
Gave confusing answer; likely meant 48-50% payout ratio.
contradictory numbers (90% vs 4.8-5%)
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Question
Your dividend payout this time has been around 91%. Is 90-91% the sustainable rate right now for dividend payout?
Lini (not specified role)
90% is industry-leading payout ratios... even without those special dividend our payout dividend payout is usually you know 4.8 5%.
Evasive
High priority
How does BP's stake sale in Castrol global impact Indian operations?
Asked by Loes, Ion Capital
Gave generic reassurance without addressing specific concerns.
no specifics on brand licensing or R&D
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Question
BP recently announced selling 65% stake in Castrol global lubricant business. How could this impact Indian shareholders in terms of brand licensing, R&D support, and long-term strategic direction?
Ash (not specified role)
It's business as usual for us over here... Castrol in India remain a very big market for Castrol globally and we are focused on executing on our plan.
Partial answer
Medium priority
Quantitative update on EV fluid sales and OEM approvals?
Asked by Loes, Ion Capital
Gave OEM approval percentage but no sales numbers.
no sales run rate given
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Question
Can you give us any quantitative update with regard to OEM approvals received in India in the last 12 months or the current run rate of EV fluid sales and the kind of margin expansion?
Ash (not specified role)
About 70% of the OEMs especially in cars have approved Castrol products... it is not a material part of our business today... EV margins would be at the same range as if you have a pure automotive business.
Answered
High priority
How will EV transition impact lubricant demand and product mix?
Asked by Vijay Pande, Nuama
Provided clear view on EV impact and medium-term outlook.
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Question
How do we see the transition from ICE to EV? How much impact will it be on our number in midterm as well as in the long run?
Ash (not specified role)
The penetration level of personal mobility in India is quite low... the contribution of pure EV within that today is still small... in the medium term hybrids and ICE will remain the backbone.
Answered
Medium priority
Can local base oil procurement increase and reduce FX impact?
Asked by Daval Popit, Choice International Limited
Clearly explained that local sourcing doesn't hedge FX risk.
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Question
50 to 55% of base oil is currently imported. Can this percentage go down going forward and how much incremental can be procured from this partnership?
Lini and Ash (not specified roles)
We import about slightly more than half... we would like to continue... it doesn't protect us from foreign exchange fluctuations because base oil is a commodity priced in dollars.
Partial answer
Medium priority
What is the revenue mix between B2B and B2C and product mix within automotive?
Asked by Mander A, Investo
Provided B2B/B2C mix but not the requested sub-segment breakdown.
did not give PCMO/CVO breakdown
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Question
Could you please share the current revenue mix between B2B and B2C segments and additionally what is the product mix breakdown within automotive segments specifically from PCMO and CVO category?
Lini (not specified role)
Out of my automotive sales, 65-70% still is in the retail segment... Industrial is still relatively small at about 12-13% but growing very fast.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Volume growth high single digit 7-8% for FY25 | 8% | 6.4% | Overstated vs filing |
| Operating margin closed at 24% for FY25 | 24% | 26% | Understated vs filing |
| Q4 EBITDA margin 26% | 26% | 26% | Matches filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.