Where Did Castrol India Begin and How Has It Evolved?
Let’s rewind the clock. Castrol India’s journey began all the way back in 1910 when C.C. Wakefield & Company brought the now-iconic “Castrol” brand to Indian shores. Fast forward a few decades, and the name Castrol became a household one for anyone who owned a vehicle. By the 1970s, it was already a market leader. Then came a major milestone—BP plc, the global energy behemoth, acquired a 51% stake in the company in 2000, cementing Castrol India’s place in the big leagues (source).
Today, it’s more than just a lubricant brand. Castrol India has transformed into a full-fledged solutions provider, serving both automotive and industrial customers. Its reach? Over 150,000 retail outlets and three state-of-the-art blending plants spread across the country.
What Exactly Does Castrol India Do and Who Does It Serve?
If you’ve ever walked into a garage or auto service center, chances are you’ve seen a Castrol product front and center. Here’s what they’re into:
- Automotive Lubricants: Think engine oils for bikes, cars, and trucks—brands like Castrol Activ, GTX, and EDGE.
- Industrial Lubricants: Specialized products for sectors like manufacturing, construction, and even wind energy.
- Marine and Energy Solutions: High-performance oils designed for ships and power plants.
They don’t just sell to individuals either. Castrol’s clients include major automotive OEMs like Tata Motors, Ford, Honda, and Land Rover (source).
How Has Castrol India’s Stock Fared Over the Years?
Let’s talk numbers. As of May 21, 2025, Castrol India’s stock trades at ₹209 (source). While that may not scream “multibagger,” it’s important to note the stability it offers. Back in 2016–17, the stock touched highs of ₹470. Since then, it has settled into a more measured pace, reflecting its mature business model.
One of the stock’s biggest attractions? Its dividend yield of 4.07%, which is considerably higher than many of its peers. That makes it particularly appealing for those looking to generate steady income from their investments (source).
How Does Castrol India Stack Up Against Competitors?
Let’s put Castrol in the ring with some of its industry peers:
| Company | CMP (₹) | P/E Ratio | Market Cap (₹ Cr) | Div Yield (%) | Net Profit (₹ Cr) | Qtr Profit Var (%) | Sales (₹ Cr) | Qtr Sales Var (%) | ROCE (%) |
|---|---|---|---|---|---|---|---|---|---|
| Pidilite Inds. | 2,989.80 | 72.60 | 1,52,075.80 | 0.53 | 427.52 | 25.89 | 3,141.14 | 8.25 | 29.86 |
| SRF | 2,979.50 | 70.62 | 88,319.77 | 0.24 | 526.06 | 24.60 | 4,313.34 | 20.83 | 12.28 |
| Linde India | 7,135.75 | 140.10 | 60,853.67 | 0.06 | 113.99 | -2.70 | 605.86 | -14.21 | 17.36 |
| Gujarat Fluoroch | 3,971.30 | 95.67 | 43,624.74 | 0.08 | 126.00 | 57.50 | 1,148.00 | 15.73 | 9.76 |
| Godrej Industrie | 1,162.00 | 39.90 | 39,130.59 | 0.00 | 416.13 | 822.49 | 5,779.69 | 26.55 | 8.32 |
| Deepak Nitrite | 2,078.00 | 41.03 | 28,342.52 | 0.35 | 98.13 | -51.45 | 1,903.40 | -5.27 | 21.65 |
| Himadri Special | 460.65 | 40.94 | 22,741.46 | 0.13 | 155.46 | 34.99 | 1,134.64 | -3.59 | 22.01 |
| Castrol India | 208.90 | 21.86 | 20,662.76 | 4.07 | 233.46 | 7.96 | 1,422.00 | 7.30 | 55.16 |
What stands out? Castrol India boasts the highest ROCE in the pack—55.16%, which speaks volumes about how efficiently it uses capital. Also, that dividend yield of 4.07% makes it a rarity in this list.
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What Are the Financial Highlights Worth Noting?
Here’s a quick snapshot of its financial performance:
- Q1 2025 Revenue: ₹1,422 crore (7.3% YoY growth)
- Q1 2025 PAT: ₹233.46 crore (7.96% YoY growth)
- FY24 Revenue: ₹5,365 crore
- FY24 Net Profit: ₹927 crore (14% YoY growth)
- Book Value: ₹23 per share
- ROE: 41.8%
- ROCE: 55.2%
Source: Moneycontrol
What’s Been Making Headlines Lately?
- Leadership Update: Kedar Lele took over as MD in 2025, promising a customer-focused direction (source).
- Marketing Push: Sponsoring high-octane events like The Valley Run 2025 (source).
- Global Buzz: Talks of Saudi Aramco eyeing BP’s Castrol assets—it’s speculative, but if true, could reshape the company’s trajectory (source).
What’s Been Making Headlines Lately?
Castrol India has been actively making news across financial and industry verticals in 2025. Here’s a look at the key developments:
- Strong Q1 Performance: The company kicked off 2025 with a solid performance, posting ₹1,422 crore in revenue (up 7% YoY) and a profit after tax of ₹233 crore (up 8% YoY). Growth was driven by the successful relaunch of Castrol Activ and increased rural demand (source).
- Stock Momentum: Castrol India’s stock has appreciated by nearly 30% in FY25 so far, reflecting investor optimism fueled by stable earnings and consistent dividend payouts. Analysts have noted its robust 7% dividend yield based on FY24 levels (source).
- Marketing & Brand Strategy: The company continues to strengthen its brand image through campaigns and sponsorships. In Summer 2025, Castrol was the title sponsor for The Valley Run, a premier motorsport event. Additionally, the revamped Castrol Activ campaign featuring Shah Rukh Khan has helped increase visibility among consumers (source).
- Leadership Changes: Kedar Lele was appointed Managing Director in 2025. His appointment signals a renewed focus on digital transformation and consumer-centric strategies (source).
- Potential Ownership Shift: Industry reports suggest Saudi Aramco is evaluating a bid to acquire BP’s global Castrol business. If it materializes, this could influence Castrol India’s long-term strategic direction (source).
How’s the Industry Outlook Looking?
The lubricant industry in India is projected to grow at a 5.1% CAGR, touching USD 9.5 billion by 2030 (source).
What Are Analysts Saying?
- Median Target Price: ₹233.17
- Earnings Growth Forecast: 8.7% annually
- Revenue Growth Projection: 6.5% per annum
Source: Simply Wall St
Disclaimer: This blog is for informational purposes only. It doesn’t offer investment advice. Always consult a qualified advisor before making investment decisions.
