Castrol India Limited has announced its financial results for the first quarter ended March 31, 2025, showcasing a steady increase in both revenue and profitability. The company reported an 8% rise in net profit to ₹233 crore, compared to ₹216.24 crore in the same period a year ago. Revenue from core operations also saw a 7% increase, reaching ₹1,422 crore, up from ₹1,325.24 crore in the corresponding quarter of the previous year.

The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at ₹308 crore, marking a 4.7% year-on-year increase compared to ₹294 crore in the same quarter last year.

Several factors contributed to Castrol India's positive performance in Q1 2025. The relaunch of Castrol Activ with Actibond technology played a crucial role in strengthening its position in the two-wheeler engine oil segment. A high-profile marketing campaign featuring Bollywood superstar Shah Rukh Khan amplified the brand's new positioning. Moreover, the company's strategic efforts to expand its distribution network, now covering nearly 1.48 lakh outlets nationwide, have enhanced last-mile delivery and customer access.

Despite the positive results, Castrol India faced several macroeconomic headwinds, including rising input costs, forex volatility, and inflationary pressures. The company's total expenses for the quarter also increased by 7.9% year-on-year to ₹1,141.52 crore, compared to ₹1,057.33 crore in the same quarter of the previous financial year, primarily due to the increase in the cost of raw materials. The company has focused on customer-centric innovation, operational excellence, and strategic partnerships to navigate these challenges.

Looking ahead, Castrol India remains optimistic about its growth prospects. The company is expanding its presence in service and maintenance solutions under the Castrol Auto Service (CAS) network, which now has over 300 outlets across India. Castrol is also focusing on delivering high-quality products and services to the automotive and industrial sectors and improving its footprint in rural India.

The board has recommended a dividend of Re 0.50 per equity share of Re 1.00 each for the financial year ended March 31, 2025, which will be paid within 15 days of its approval by the shareholders at the Annual General Meeting to be held on August 25, 2025.

Analysts believe that Castrol India will continue to benefit from the increasing demand for its oil products, as the transition to electric vehicles in India is expected to be gradual. The company is also focusing on offering premium products for sport utility vehicles and expanding in rural areas to drive growth.