Veedol Corporation Ltd Q1 FY26 – Lubricants, Dividends & a Promoter Tug of War
1. At a Glance
CMP ₹1,894. Market cap ₹3,302 Cr. Dividend yield 2.85%—which is generous in today’s market where most midcaps act stingy. P/E at 17.6 looks “reasonable” compared to peers. ROE a juicy 19.8%, ROCE at 23.7%—these are “marriage material” numbers. Sales last year ₹2,005 Cr, PAT ₹188 Cr. The stock has returned +39% in six months but is still –20% YoY. Basically, Veedol is the friend who lost weight during lockdown but put it back after weddings season.
2. Introduction
Since 1928, Veedol has been filling engines with oil and investor meetings with free samples (probably). It’s one of those legacy brands that your grandfather’s Ambassador and your Ola Electric’s gear oil both somehow know.
The problem? Lubricants is a boring business. You can’t sell motor oil with Bollywood glamour. No influencer on Instagram is shouting, “New SynthGlide drop guys, my scooter runs smoother than my last relationship!”
Still, Veedol has quietly built a strong presence—65% sales under Veedol, 35% under Eneos (JV with Japanese JXTG Nippon). Distribution: 50 distributors, 650 dealers, and 50,000 retail outlets. That’s bigger reach than some FMCG companies.
Question for you: If you walked into your mechanic’s shop tomorrow and he offered Castrol vs Veedol, which one are you picking?
3. Business Model – WTF Do They Even Do?
Veedol makes three buckets of products:
Automotive Lubricants: Engine oils, gear oils, greases. For two-wheelers, passenger cars, trucks—basically every vehicle that drinks something other than petrol.
Industrial Lubricants: Hydraulic oils, turbine oils, thermic fluids. This is boring but high-margin, because factories can’t run without them.
Specialities: Sanitization products (yes, pandemic hangover inventory still being sold).
Their JV with Nippon keeps the “Eneos” brand alive in India. Manufacturing is done in five plants (Faridabad, Ramkrishnapur, Turbhe, Silvassa, Oragadam). Plus, their UK step-down subsidiary Granville Oils makes them look “global.”
Business summary: They sell liquids that prevent your engine from becoming a pressure cooker. Nothing sexy, but extremely sticky (pun intended).
4. Financials Overview
Source table
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
₹514 Cr
₹479 Cr
₹532 Cr
+7.3%
–3.4%
EBITDA
₹59 Cr
₹41 Cr
₹68 Cr
+44.1%
–13.2%
PAT
₹49.7 Cr
₹37 Cr
₹60 Cr
+34%
–17%
EPS (₹)
28.5
21.3
34.3
+33%
–17%
Commentary: QoQ dip but YoY strong. Margins improving (OPM 11%). Annualised EPS ~₹114 → P/E ~16.5, which is quite fair.
5. Valuation Discussion – Fair Value Range
P/E Method
EPS TTM: ₹104.
Apply 15×–20× multiple → ₹1,560 – ₹2,080.
EV/EBITDA Method
EV: ₹3,280 Cr.
EBITDA: ₹256 Cr (TTM).
Sector multiple ~12–14× → fair EV range ₹3,070 – ₹3,580 Cr → equity value ~₹1,850 – ₹2,150/share.
