1. At a Glance
Veedol, the brand that’s been making engines purr since 1928, is still greasing its way through the Indian automotive and industrial markets. Backed by Tide Water Oil, it sells in 65+ countries, has 5 Indian plants, and a UK unit for extra global flair. With a 3.3% dividend yield, near-zero debt, and an ROCE of ~24%, it’s a cash-rich, steady compounder. Q1 FY26 saw sales up 7.3% YoY and PAT up 33.8% YoY, proving that sometimes boring businesses are the smoothest operators.
2. Introduction
If lubricants had a royal family, Veedol would be the great-grandparent with war medals, still showing up to work every day. Born in 1928, this company has seen India go from bullock carts to electric SUVs. The core recipe hasn’t changed: blend oils, sell them, repeat.
Under the Tide Water Oil banner, Veedol caters to two main segments — automotive and industrial. Automotive oils dominate, from 2-wheeler engine oils to CV gear oils, while the industrial side keeps machines in factories humming. The brand split in India is Veedol (65% sales) and Eneos (35%), the latter via a JV with Japan’s JXTG.
What keeps the machine running? A vast dealer network — 50 distributors, 650 direct dealers, and over 50,000 retail outlets — plus five strategically located plants with 105,000 KLPA lubricant capacity. Throw in two R&D centres and a UK manufacturing unit, and you get a business that’s hard to disrupt.
It’s not a high-growth rocket, but it’s a dividend-paying, margin-maintaining, balance-sheet-friendly survivor. In a world obsessed with tech unicorns, Veedol is the profitable, cash-generating tortoise.
3. Business Model (WTF Do They Even Do?)
Core Products:
- Automotive Lubricants: Engine, gear, transmission oils, greases.
- Industrial Lubricants: Machinery oils, thermic fluids, turbine oils, hydraulic oils.
- Specialities: Vehicle sanitisation products (because pandemic-era pivots never die).
Brands:
- Veedol– legacy
- brand, bulk of domestic sales.
- Eneos– Japanese co-brand with global pedigree.
Operations:
- 5 Indian plants (Faridabad, Ramkrishnapur, Turbhe, Silvassa, Oragadam).
- UK plant via subsidiary Granville Oil & Chemicals Ltd.
- R&D centres to keep product portfolio updated with OEM needs.
Distribution Muscle:50 distributors, 650 direct dealers, >50,000 retail points.
Verdict: It’s a cash machine selling a necessity product with a moat built on brand recognition, distribution reach, and OEM relationships.
4. Financials Overview
| Metric | Latest Qtr (Jun’25) | YoY Qtr (Jun’24) | Prev Qtr (Mar’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹514 Cr | ₹479 Cr | ₹532 Cr | 7.26% | -3.38% |
| EBITDA | ₹59 Cr | ₹41 Cr* | ₹68 Cr | ~43% | -13.24% |
| PAT | ₹49.7 Cr | ₹37.1 Cr | ₹60 Cr | 33.8% | -17.17% |
| EPS (₹) | 28.51 | 21.30 | 34.26 | 33.8% | -16.8% |
*EBITDA back-calculated from OPM.
YoY: Strong growth in revenue and profits.QoQ: Seasonal dip after a strong Q4.
5. Valuation (Fair Value Range Only)
P/E Method:TTM EPS = ₹104Industry avg P/E ≈ 17–20xFV Range = ₹1,770 – ₹2,080
EV/EBITDA Method:TTM EBITDA ≈ ₹211 CrNet debt ≈ ₹0EV/EBITDA fair range 10–12x → EV ₹2,110–₹2,532 Cr → Equity FV range = ₹1,680–₹2,015 per share
DCF (10% discount, 6% growth):
