Company Update : Castrol India Ltd by Motilal Oswal Financial Services Ltd
Stable performance
* Castrol India’s (CSTRL) 3QCY25 revenue stood at ~INR13.6b, in line with expectations (up 6% YoY).
* EBITDA came in above our estimate at INR3.2b (up 13% YoY).
* EBITDA margin expanded 150bp YoY/30bp QoQ.
* Gross margin expanded 200bp YoY/140bp QoQ.
* PAT also came in 7% above our estimate at INR2.3b.
* Other income came in above our estimate.
* Press release KTAs
* Expanded footprint and strengthened market presence:
* The company has expanded its national network to ~150,000 outlets across India.
* Its service network now encompasses over 750 Castrol Auto Service centers, around 33,000 independent bike workshops, and about 11,500 multi-brand workshops.
* With nearly 40,000 rural outlets and 500 Rural Express points, the company continues to deliver consistent double-digit growth in rural markets.
* The full Auto Care product range is now accessible via e-commerce platforms, modern trade channels, and more than 67,000 physical outlets nationwide.
* The company has signed an MoU with VinFast Auto India to provide reliable and easily accessible aftersales support for EV customers through select Castrol Auto Service workshops.
* Building momentum through new launches and localization:
* The company has expanded its Auto Care portfolio with the introduction of Castrol All-in-One Helmet Cleaner.
* It has localized high transmission EV fluids and industrial products, Alusol SL 41 XBB and NPI - Spheerol SM 00.
* It has upgraded Castrol Magnatec to align with the latest API SQ specifications.
* Building momentum through new launches and localisation:
* Expanded the Auto Care portfolio with the introduction of Castrol Allin-One Helmet Cleaner.
* Localisation of high transmission EV fluids and industrial product Alusol SL 41 XBB and NPI - Spheerol SM 00.
* Upgraded Castrol Magnatec to align with the latest API SQ specifications.
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