Company Update : Castrol India Ltd By Motilal Oswal Financial Services Ltd
Earnings in line; EBITDA margin contracts QoQ
* Castrol’s 1QCY25 revenue came in at ~INR14.2b, in line with our est.
* EBITDA was also in line with our est. at INR3b (up 5% YoY).
* EBITDA margin contracted 55/615bp YoY/QoQ due to a rise in other expenses.
* Gross margin dipped 423bp QoQ, however, it remained flat YoY.
* PAT was in line at INR2.3b.
* Other key highlights:
* The relaunch of Castrol Activ, supported by a high-visibility campaign featuring Shah Rukh Khan, significantly contributed to volume growth. Additionally, the new range of rust-prevention products (Rustilo DW 800, 806, 809, 812) is gaining traction in the tube industry.
* The company secured a supply agreement with Triumph for their fully synthetic Castrol POWER1 two-wheeler engine oil.
* The network expanded nationwide to ~148,000 outlets.
* Industrial product visibility improved along with a rise in new customer acquisitions; CMS services added a major gearbox manufacturer in 1Q, and IMTEX 2025 generated business leads.
* The Patalganga plant received the ESG Global Award Gold for excellence in Occupational Health, Safety, Sustainability, and Industrial Hygiene. Castrol EDGE and CRB Turbomax Pragati Ki Paathshaala collectively won 11 EMVIE awards for impact. Two leaders, Rohit Talwar and Chikita Sobti, gained national recognition in marketing and communications.
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