Castrol India Maintains Strong Growth Amid Market Challenges

Mumbai-based lubricant manufacturer Castrol India has expressed confidence in sustaining operating margins between 21% and 24%, supported by consistent volume growth and the execution of strategic initiatives. In an interview, Managing Director Kedar Lele highlighted that the company's renewed focus on industrial clients and rural market expansion has led to double-digit growth in both sectors during the latest quarter.

For the second quarter of Calendar Year 2025 (Q2CY25), Castrol India reported a revenue of ?1,497 crore, a margin of 23.4%, and a profit of ?244 crore, reflecting an 8% volume growth for two consecutive quartersásignificantly higher than the industry average of approximately 3.5% to 4%. Lele emphasized that these results stem from core business strategies rather than one-off factors.

Lele acknowledged the ongoing transition towards electric vehicles (EVs) but downplayed immediate threats to the lubricant market, asserting that India's mobility sector will predominantly rely on traditional fuels for the next decade. He noted that while EV adoption is growing, supply chain constraints, such as shortages of critical components, may temporarily hinder production.

The company's "Bharat" strategy aims to increase accessibility and affordability of lubricants in rural areas, where the ownership of two-wheelers and cars is rising. By providing cost-effective solutions, Castrol India is bolstering its market presence in these regions.

Overall, Castrol India's strong performance, driven by strategic priorities focused on industrial growth and rural penetration, positions it favorably for sustained competitive growth in a challenging market landscape. The firm remains committed to delivering above-industry volume growth while maintaining robust margins.