Castrol India Ltd
CASTROLIND NSE
Castrol India Ltd
EnergyNSE: CASTROLIND BSE: 500870 Petroleum Products
Castrol India Ltd is principally engaged in the business of manufacturing & marketing of automotive and industrial lubricants and related services.[1]
AI Verdict: HOLD Confidence: 6%
Castrol India is a high-quality, debt-free cash cow with 46% ROE and 4.74% dividend yield, but the stock trades at an expensive 9.61x book value with muted profit growth of just 3% TTM. At a PE of 19x with near-zero stock CAGR over 10 years, the risk-reward is balanced rather than compelling.
Key Fundamentals
SmallcapLubricantsPetroleum ProductsMarket Cap
₹18,434 Cr
Volatility
Moderate
P/E Ratio
19.13
EBITDA
₹1,415 Cr
Return on Equity
40.73%
Debt to Equity
0.03
Book Value
₹19.21
EPS
₹8.95
52W High
₹232.43
52W Low
₹170.1
Technical Indicators
Key Insights
Strengths
5- Company has reduced debt.
- Company is almost debt free.
- Stock is providing a good dividend yield of 4.66%.
- Company has a good return on equity (ROE) track record: 3 Years ROE 43.4%
- Company has been maintaining a healthy dividend payout of 109%
Weaknesses
1- Stock is trading at 9.77 times its book value
Growth Rate
Revenue Growth
6.15% ↘
Net Income Growth
2.45% ↗
Cash Flow Change
4.41% ↗
ROE
22.83% ↗
ROCE
21.36% ↗
EBITDA Margin (Avg.)
-2.47% ↘
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 3d agoHOLD
Risk medium
Castrol India is a high-quality, debt-free cash cow with 46% ROE and 4.74% dividend yield, but the stock trades at an expensive 9.61x book value with muted profit growth of just 3% TTM. At a PE of 19x with near-zero stock CAGR over 10 years, the risk-reward is balanced rather than compelling.
Bull Case 7
- Exceptional return on equity of 46% last year and 43% 3-year average, indicating highly efficient capital allocation
- Virtually debt-free balance sheet provides financial resilience through commodity price cycles
- Attractive dividend yield of 4.74% with a payout ratio of 109%, making it a reliable income stock
- Compounded sales growth of 7% TTM shows revenue momentum is intact despite a mature market
- 60% of analysts rate the stock a Buy with zero Sell ratings out of 5 total analyst coverage
- 10-year ROE average of 51% demonstrates a durable competitive moat in the lubricants business
- PE of 19x is reasonable for a consumer-facing brand with predictable cash flows compared to FMCG peers trading at 40-60x
Bear Case 8
- Stock is trading at 9.61x price-to-book, which is expensive for a business with limited reinvestment opportunities
- 10-year stock CAGR of 0% indicates the market has delivered zero capital appreciation over a decade
- Compounded profit growth of only 3% TTM and 4% over 10 years signals structural earnings stagnation
- 1-year stock return of -10% shows recent negative price momentum and investor disinterest
- Sales CAGR of only 6% over 10 years reflects a mature, low-growth lubricants market in India
- Dividend payout of 109% exceeding net profits is unsustainable long-term and leaves no retained earnings for growth capex
- EV transition risk: rising electric vehicle adoption in India over the next decade could structurally shrink the addressable lubricants market
- 5-year stock CAGR of only 5% significantly underperforms Nifty 50 returns of approximately 15% over the same period
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago Positives 2
- New bike lubricant campaign launched Jun 18
Castrol India unveiled the 'Bike Smooth, Toh Life Smooth' campaign for Castrol Activ Full Synthetic, signaling push into premium two-wheeler segment to drive demand.
- New MD appointed for 5 years May 28
Saugata Basuray appointed as Managing Director for a five-year term starting 1 June 2026, providing long-term leadership stability.
Neutral 1
- Investor conference on June 12 Jun 8
Management attended a virtual investor conference on June 12, 2026, organized by Choice Institutional Equities, indicating ongoing engagement with institutional investors.
TL;DR: Castrol India is showing proactive brand-building with a new premium two-wheeler campaign and has secured leadership continuity with a new MD on a 5-year term. No material headwinds emerged in recent news flow. The trend is stable with a slight positive tilt from marketing investment and governance clarity, though near-term catalysts remain limited.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,294 | 1,334 | 1,183 | 1,264 | 1,325 | 1,398 | 1,288 | 1,354 | 1,422 | 1,497 | 1,363 | 1,440 | 1,545 |
| Expenses | 1,003 | 1,024 | 914 | 935 | 1,032 | 1,075 | 1,002 | 978 | 1,115 | 1,147 | 1,040 | 1,072 | 1,216 |
| Operating Profit | 291 | 310 | 269 | 329 | 294 | 322 | 286 | 376 | 307 | 350 | 323 | 368 | 329 |
| OPM % | 22% | 23% | 23% | 26% | 22% | 23% | 22% | 28% | 22% | 23% | 24% | 26% | 21% |
| Other Income | 22 | 19 | 20 | 22 | 24 | 20 | 21 | 23 | 32 | 9 | 12 | -9 | 23 |
| Interest | 2 | 1 | 2 | 2 | 2 | 3 | 2 | 3 | 2 | 3 | 2 | 2 | 2 |
| Depreciation | 23 | 22 | 23 | 25 | 24 | 26 | 25 | 25 | 25 | 27 | 25 | 24 | 28 |
| PBT | 288 | 305 | 264 | 324 | 292 | 314 | 280 | 371 | 313 | 330 | 308 | 332 | 323 |
| Tax % | 30% | 26% | 26% | 25% | 26% | 26% | 26% | 27% | 25% | 26% | 26% | 26% | 25% |
| Net Profit | 202 | 225 | 194 | 242 | 216 | 232 | 207 | 271 | 233 | 244 | 228 | 245 | 242 |
| EPS in Rs | 2.05 | 2.28 | 1.97 | 2.45 | 2.19 | 2.35 | 2.1 | 2.74 | 2.36 | 2.47 | 2.3 | 2.47 | 2.45 |
Profit & Loss
| Dec 2014 | Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 3,392 | 3,298 | 3,370 | 3,584 | 3,905 | 3,877 | 2,997 | 4,192 | 4,774 | 5,075 | 5,365 | 5,722 | 5,845 |
| Expenses | 2,675 | 2,397 | 2,369 | 2,551 | 2,834 | 2,723 | 2,183 | 3,125 | 3,663 | 3,877 | 4,086 | 4,374 | 4,475 |
| Operating Profit | 718 | 901 | 1,001 | 1,033 | 1,071 | 1,154 | 814 | 1,067 | 1,111 | 1,198 | 1,278 | 1,348 | 1,369 |
| OPM % | 21% | 27% | 30% | 29% | 27% | 30% | 27% | 25% | 23% | 24% | 24% | 24% | 23% |
| Other Income | 47 | 90 | 86 | 84 | 84 | 64 | 62 | 47 | 67 | 83 | 88 | 45 | 36 |
| Interest | 2 | 1 | 1 | 1 | 1 | 1 | 4 | 2 | 4 | 8 | 9 | 9 | 9 |
| Depreciation | 36 | 39 | 45 | 46 | 56 | 70 | 87 | 83 | 81 | 92 | 100 | 101 | 104 |
| PBT | 726 | 951 | 1,040 | 1,070 | 1,098 | 1,147 | 785 | 1,029 | 1,093 | 1,181 | 1,258 | 1,282 | 1,293 |
| Tax % | 35% | 35% | 36% | 35% | 36% | 28% | 26% | 26% | 25% | 27% | 26% | 26% | — |
| Net Profit | 475 | 615 | 670 | 692 | 708 | 827 | 583 | 758 | 815 | 864 | 927 | 950 | 959 |
| EPS in Rs | 4.8 | 6.22 | 6.78 | 6.99 | 7.16 | 8.36 | 5.89 | 7.66 | 8.24 | 8.74 | 9.37 | 9.6 | 9.69 |
| Div. Payout % | 78% | 72% | 81% | 100% | 70% | 66% | 93% | 72% | 79% | 86% | 149% | 91% | — |
Balance Sheet
| Dec 2014 | Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 247 | 247 | 247 | 495 | 495 | 495 | 495 | 495 | 495 | 495 | 495 | 495 |
| Reserves | 250 | 328 | 734 | 526 | 671 | 872 | 920 | 1,151 | 1,391 | 1,627 | 1,784 | 1,406 |
| Borrowings | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7 | 50 | 77 | 82 | 63 |
| Other Liabilities | 995 | 1,086 | 907 | 957 | 941 | 862 | 979 | 1,052 | 1,133 | 1,221 | 1,275 | 1,432 |
| Total Liabilities | 1,492 | 1,662 | 1,888 | 1,977 | 2,107 | 2,229 | 2,394 | 2,704 | 3,069 | 3,420 | 3,635 | 3,395 |
| Fixed Assets | 172 | 149 | 147 | 139 | 186 | 200 | 209 | 201 | 261 | 259 | 319 | 334 |
| CWIP | 16 | 36 | 37 | 57 | 35 | 27 | 44 | 50 | 61 | 108 | 60 | 72 |
| Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 325 | 488 | 488 | 443 |
| Other Assets | 1,304 | 1,476 | 1,704 | 1,781 | 1,886 | 2,002 | 2,141 | 2,453 | 2,422 | 2,565 | 2,769 | 2,546 |
| Total Assets | 1,492 | 1,662 | 1,888 | 1,977 | 2,107 | 2,229 | 2,394 | 2,704 | 3,069 | 3,420 | 3,635 | 3,395 |
Cash Flow
| Dec 2014 | Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 548 | 740 | 664 | 608 | 549 | 879 | 893 | 630 | 916 | 853 | 1,044 | 1,090 |
| Investing | -14 | 2 | -33 | 151 | 66 | -448 | -201 | -83 | 62 | -251 | -265 | 199 |
| Financing | -697 | -478 | -568 | -656 | -567 | -628 | -564 | -558 | -608 | -664 | -819 | -1,315 |
| Net Cash Flow | -163 | 264 | 63 | 104 | 48 | -196 | 128 | -10 | 370 | -61 | -40 | -26 |
| Free Cash Flow | 497 | 703 | 641 | 573 | 472 | 780 | 869 | 547 | 806 | 761 | 951 | 996 |
| CFO/OP | 111 | 119 | 104 | 97 | 89 | 103 | 139 | 85 | 107 | 98 | 106 | 107 |
Ratios
| Dec 2014 | Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 29 | 26 | 28 | 29 | 37 | 45 | 22 | 27 | 27 | 30 | 30 | 30 |
| Inventory Days | 69 | 69 | 82 | 70 | 87 | 64 | 106 | 87 | 78 | 74 | 70 | 68 |
| Days Payable | 101 | 123 | 118 | 133 | 112 | 99 | 157 | 110 | 99 | 98 | 94 | 98 |
| Cash Conversion Cycle | -3 | -28 | -9 | -34 | 12 | 10 | -30 | 4 | 6 | 6 | 6 | 0 |
| Working Capital Days | -27 | -48 | -18 | -16 | 5 | 5 | -34 | -8 | -8 | -7 | -7 | -13 |
| ROCE % | 117% | 179% | 133% | 105% | 101% | 91% | 57% | 67% | 61% | 57% | 55% | 60% |
Documents
1
Announcement under Regulation 30 (LODR)-Earnings Call Transcript
4 May - Transcript of Post Earnings Call for Q1 FY 2026 held on 29 April 2026. 4 May - Transcript of Post Earnings Call for Q1 FY 2026 held on 29 April 2026.
3
Announcement under Regulation 30 (LODR)-Newspaper Publication
29 Apr - Results for the quarter ended 31 March 2026 published on April 29, 2026. 29 Apr - Results for the quarter ended 31 March 2026 published on April 29, 2026.
4
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Outcome
29 Apr - Post-earnings call recording for 1Q FY2026 released on 29 April 2026. 29 Apr - Post-earnings call recording for 1Q FY2026 released on 29 April 2026.
5
Announcement under Regulation 30 (LODR)-Earnings Call Transcript
4 May - Transcript of Post Earnings Call for Q1 FY 2026 held on 29 April 2026. 4 May - Transcript of Post Earnings Call for Q1 FY 2026 held on 29 April 2026.
Frequently Asked Questions about Castrol India Ltd
What does Castrol India Ltd do?
Castrol India Ltd is principally engaged in the business of manufacturing & marketing of automotive and industrial lubricants and related services.[1]
Where is Castrol India Ltd (CASTROLIND) listed?
Castrol India Ltd is listed on the Indian stock exchanges. It is listed on NSE: CASTROLIND and BSE: 500870. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Castrol India Ltd belong to?
Castrol India Ltd operates in the Energy sector within the Petroleum Products industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Castrol India Ltd?
Castrol India Ltd has a market capitalisation of approximately ₹18434.27 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of Castrol India Ltd?
The Price-to-Earnings (PE) ratio of Castrol India Ltd is 19.13. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Castrol India Ltd?
Over the past 52 weeks, Castrol India Ltd has traded between a low of ₹170.1 and a high of ₹232.43. This range helps investors understand the stock's price volatility and recent trading levels.
Does Castrol India Ltd pay dividends?
Yes, Castrol India Ltd has a dividend yield of 4.66%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Castrol India Ltd?
Castrol India Ltd has a Return on Equity (ROE) of 40.73%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Castrol India Ltd on Tapetide?
On Tapetide, you can view Castrol India Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.
Company Information
Castrol India Ltd is principally engaged in the business of manufacturing & marketing of automotive and industrial lubricants and related services.[1]
Website castrol.co.in
CEO Mr. Saugata Basuray
Employees 639
Listed 2014-03-14
Face Value ₹ 5
Issued Size 98,91,22,384