Castrol India’s share price witnessed a sharp rise of 9% on February 4, reaching a two-week high of ₹192.90 per share. The surge came after the company released its Q4 CY2024 results, reflecting strong revenue growth and profit margins, reinforcing investor confidence. Let’s take a closer look at the financials, key highlights, and what’s next for Castrol India.
Also read: Castrol India Ltd. – Fundamental Analysis
Castrol India Q4 and full-year 2024 financial highlights
Key financial figures:
| Metric | Q4 2024 (₹ crore) | Q4 2023 (₹ crore) | YoY Growth |
|---|---|---|---|
| Revenue from operations | 1,354 | 1,264 | 7% |
| Profit Before Tax (PBT) | 371 | 324 | 14% |
| Profit After Tax (PAT) | 271 | 242 | 12% |
For the full year (CY2024), Castrol India reported:
| Metric | FY 2024 (₹ crore) | FY 2023 (₹ crore) | YoY Growth |
| Revenue from operations | 5,365 | 5,075 | 6% |
| Profit Before Tax (PBT) | 1,258 | 1,181 | 6% |
| Profit After Tax (PAT) | 927 | 864 | 7% |
The company follows the January to December financial reporting calendar. The steady growth in revenue and profit reflects Castrol India’s ability to navigate market conditions while expanding its footprint.
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What’s driving Castrol India’s stock rally?
Several factors contributed to the 9% jump in Castrol India’s share price:
1. Strong revenue and profit growth
- Revenue grew 7% YoY in Q4 and 6% for the full year.
- Profitability remained strong, with PAT increasing by 12% in Q4 and 7% for the full year.
- The company managed costs efficiently, ensuring steady profit margins.
2. Dividend payout boosts investor confidence
- Castrol India announced an interim dividend of ₹9.5 per share, adding to its appeal for dividend-seeking investors.
3. Expanding presence in rural India
- The company strengthened its network, now reaching over 36,000 workshops and stores, forming a part of a broader network of 143,000 outlets nationwide.
- This expansion ensures higher accessibility and stronger brand loyalty, contributing to long-term growth.
4. Product innovation and portfolio expansion
- Relaunch of ACTIV brand in Q1 2025, targeting high-volume consumer segments.
- Castrol EDGE continues to dominate in high-performance lubricants, while CRB TURBOMAX+ CK4 is gaining traction in the trucking industry.
- Focus on industrial partnerships, especially in rust protection solutions, enhances revenue streams.
Castrol India’s stock performance over time
Castrol India’s share price has seen a strong upward trajectory since June 2022:
- June 2022 share price: ₹112 per share
- February 2025 share price: ₹192.90 per share
- Total gain: 70% increase in 2.5 years
With a market capitalization of ₹18,595.50 crore, Castrol India remains a key player in the lubricant industry and a reliable investment choice in the mid-cap segment.
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What’s next for Castrol India in 2025?
1. Continued expansion in rural markets
- Growing reach in tier-2 and tier-3 cities to capture untapped demand.
2. Product innovation and diversification
- The upcoming relaunch of ACTIV brand in Q1 2025 is expected to drive sales.
- Increasing adoption of sustainable and high-performance lubricants will be a key focus.
3. Sustained investor interest
- Dividend payouts and strong profit margins make Castrol India an attractive option for long-term investors.
- The company’s consistent growth in revenue and profits ensures stability despite market fluctuations.
Final thoughts
Castrol India’s 9% stock surge post-Q4 results is a clear reflection of investor optimism. With steady revenue growth, strong profit margins, and a well-defined expansion strategy, the company remains a solid pick in the Indian lubricant sector. Investors should watch for upcoming developments like the ACTIV brand relaunch and deeper rural penetration, which could further boost growth.
For those looking for consistent returns, stable financials, and a strong market presence, Castrol India presents an intriguing opportunity in 2025.
