01 — At a Glance
The Veedol Story: 97 Years of “Chalo, Badha Dena” to Your Engine
- 52-Week High / Low₹2,035 / ₹1,275
- Q3 FY26 Revenue₹538 Cr
- Q3 FY26 PAT₹43.6 Cr
- TTM EPS₹111
- Annualised EPS (Q1-Q3 Avg × 4)₹102.68
- Book Value / Share₹561
- Price to Book2.37x
- Gross Debt₹21 Cr
- Debt/Equity0.02x
- ROCE23.7%
Flash Summary: Veedol just delivered Q3 PAT of ₹43.6 crore, with quarterly sales at ₹538 crore. The stock is down 30.8% in 6 months because the market is convinced that car ownership in India will vanish next Tuesday. Meanwhile, ROCE is 23.7%, ROE is 19.8%, debt is practically non-existent (₹21 crore), and the company is paying you 4% dividend yield while sleeping. At 12x P/E, this looks like a boomer stock, which is exactly why everyone’s running away from it.
02 — Introduction
Veedol: The Company That Started When Your Great-Grandfather Had Hair
Let’s rewind to 1928. The stock market was a luxury for princes. India was still getting independence. And somewhere in Kolkata, Tide Water Oil Company India Limited — trading under the brand Veedol — decided that Indian engines needed better lubricants. They were right then. They’re still right now. They’ll probably still be right in 2050.
Veedol operates in a business so unglamorous that even the Screener platform seems to cover it with pity. The Indian lubricants market is worth roughly ₹20,000+ crore annually, and Veedol owns about 10% of that pie — not with Teslas and Instagram followers, but with Tata trucks, Bajaj autos, and every mechanic workshop from Mumbai to Manipur. Their brands? “Veedol” (the OG, 40% of domestic sales) and “Eneos” (the fancy Japanese import, 35% of sales, via a 50-50 JV with Eneos Corporation).
Q3 FY26 brought a modest quarter: ₹538 crore in revenue (up 11.5% QoQ but flat YoY) and ₹43.6 crore in PAT. The stock market yawned. Then it sneezed. Then it crashed 20.9% in three months because apparently, a 23.7% ROCE and a 4% dividend yield are diseases, not features.
CARE Ratings Note (Feb 2026): CARE AA; Stable. Veedol got a fresh bank facility rating of ₹99 crore. The company’s credit profile is “comfortable,” with “strong liquidity” and “minimal debt.” But sure, let’s panic-sell on Q3 flat growth. This is the way.
03 — Business Model: Making Sure Your Bike Doesn’t Sound Like a Dying Cow
They Squeeze Oil, You Get Smooth Rides. Everyone’s Happy (Except The Stock).
Veedol makes lubricants. That’s it. That’s the business. Oil for your car engine. Oil for your truck’s transmission. Oil for your factory’s machinery. Grease for your overhead crane. Speciality fluids for your industrial equipment. There’s no AI. There’s no blockchain. There’s no ChatGPT plugin. Just good old-fashioned industrial chemistry and 97 years of knowing what works.
The company operates five manufacturing plants across India (Faridabad, Ramkrishnapur, Turbhe, Silvassa, Oragadam) with a combined capacity of 111,000 KLPA (kilolitres per annum) for lubricants and 6,160 MTPA for greases. They have a distribution network that would make a logistics startup weep — 500 distributors, 50+ depots, and 50,000 retail outlets and workshops. This network took 97 years to build. It cannot be disrupted by an app.
Revenue split? About 82% is automotive lubricants, 12% industrial, and 6% specialty products. Geographically, 80% comes from India and 20% from overseas (via subsidiaries in UK, UAE, and Germany — though they closed their German shop in January 2026). The business is as cyclical as car sales, as volatile as crude oil prices, and as competitive as a desi wedding where everyone brings the same dessert.
Auto Lubricants82%of sales
Industrial12%of sales
Specialty6%of sales
Veedol Brand40%domestic sales
Fun fact: The Indian automotive industry generates about ₹12-13 lakh crore in annual revenue. Veedol’s entire market cap is ₹2,320 crore. That’s 0.017% of the sector. They’re essentially an insect in a dinosaur’s bathroom. A very profitable insect.
04 — Financials Overview
Q3 FY26: The Numbers That Dare Not Excite Anyone
Result type: Quarterly Results | Q3 FY26 EPS: ₹24.99 | Q2 FY26 EPS: ₹23.50 | Q1 FY26 EPS: ₹28.51 | Avg: ₹25.67 | Annualised EPS: ₹102.68
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 538 | 482 | 509 | +11.6% | +5.7% |
| Operating Profit | 52 | 38 | 53 | +36.8% | -1.9% |
| OPM % | 9.7% | 7.9% | 10.4% | +180 bps | -70 bps |
| PAT | 43.6 | 37 | 41 | +17.8% | +6.3% |
| EPS (₹) | 24.99 | 21.43 | 23.50 | +16.6% | +6.3% |
The Plot Twist: YoY revenue growth of 11.6% with OPM expansion of 180 basis points. PAT up 17.8% YoY. EPS up 16.6% YoY. And the stock? Down 20.9% in three months. This is what happens when the market decides to ignore fundamentals and play “guess the crude oil price next month” instead. The company is performing. The market is performing comedy.
💬 If a company shows 17.8% PAT growth and a 12x P/E, why is the market still running away? Is it crude oil volatility fear, or just classic “Old is Boring” syndrome? What’s your take?
05 — Valuation Discussion
What Is This 97-Year-Old Oil Company Actually Worth?
