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Performance in line

• Castrol India’s (CSTRL) 2QCY25 revenue came in at ~INR15b, in line with our estimate (up 7% YoY).
• EBITDA was also in line with our estimate at INR3.5b (up 8% YoY).
• EBITDA margin expanded 30bp YoY/175bp QoQ. ? Gross margin remained flat YoY/QoQ.
• PAT was also in line at INR2.4b. However, other income stood below our estimate.
• The Board has recommended an interim dividend of INR3.5/sh (FV: INR5/sh)
• Other key highlights:
• Remarks from Mr. Kedar Lele, MD: The company remains optimistic about the road ahead. The industrial segment continues to be a key long-term growth driver, with the first half showing positive momentum—new customer additions, improved traction, and a growing share of locally manufactured products. Meanwhile, the rural strategy is progressing well and will be further strengthened in the coming months.
• Industrial Segment updated:
• The recently launched Rustilo DW 800 range of rust preventives—developed and manufactured locally—is now serving over 100 customers across the automotive, bearings, tube, and metal manufacturing sectors.
• Localized production of globally recognized metalworking fluids such as Hysol MB50 and the 20XBB range has enabled faster delivery and enhanced value creation.
• Chemical Management Services (CMS) have been successfully deployed at multiple new sites, further strengthening industrial service offerings.
• Focus on expanding distribution:
• CSTRL now has a presence in over 0.16m outlets, including 32,000+ bike points, 11,000+ multi-brand car workshops, and a broad dealer network.
• The Castrol Auto Service network continues to grow, currently supporting over 730 workshops across 340+ cities, offering reliable, professional services in the aftermarket.
• The full range of autocare products is now widely available across e-commerce platforms, modern trade outlets, and 50,000+ physical retail points across India.

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