Castrol India Surges 5.14% After ₹4,131 Crore Maharashtra VAT Case Win; CESTAT Dismisses Appeals
By Ankur Chandra | Published at: Jul 14, 2025 01:52 PM IST
Mumbai, July 14, 2025- Castrol India Ltd (NSE: CASTROLIND) surged over 5% trading at ₹225.03 at 1:35 PM IST. This surge follows securing a decisive victory in a long-standing Maharashtra VAT litigation involving ₹4,131 crore.
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) ruled in favour of Castrol India on July 11, 2025, rejecting the Maharashtra Sales Tax Department’s (MSTD) appeals pertaining to nine financial years from FY08 to FY16 and FY18. The stock jumped from its previous close of ₹219.89, triggering strong buying interest on Dalal Street.
Castrol India: Key Price Movement
| Metric | Value (₹) |
|---|---|
| Last Traded Price | 225.03 (Intraday as of 1:35 PM IST) |
| % Change | +2.34% |
| Previous Close | 219.89 |
| Day’s High | 227.30 |
| Day’s Low | 223.42 |
| VWAP | 225.32 |
| 52-Week High / Low | 284.40 / 162.60 |
The ruling ends over a decade of dispute related to the tax treatment of stock transfers from Castrol’s Maharashtra facilities to clearing and forwarding agents (CFAs) in other states. MSTD had claimed these were interstate sales based on pre-existing customer orders, which the company refuted.
Market Response and Volumes
| Trade Metrics | Value |
|---|---|
| Traded Volume (in lakh shares) | 11.10 |
| Traded Value (₹ Cr) | 25.00 |
| Market Cap (₹ Cr)** | 22,417.47 |
| Free Float Market Cap (₹ Cr) | 10,824.96 |
| Adjusted P/E | 30.54 |
| Annualised Volatility (%) | 44.90 |
Buyers outnumbered sellers in the order book with 4.29 lakh buy quantity vs 7.19 lakh sell quantity, signalling high investor activity amid legal clarity.
Litigation Closure Details
Castrol India confirmed that CESTAT upheld the MVAT Tribunal’s earlier orders, which had favoured the company for all 10 contested years. MSTD had not appealed against FY17, making the 9-year ruling by CESTAT the final settlement.
“The company had not provisioned for the ₹4,131 crore claim as the likelihood of economic outflow was considered remote,” Castrol said in its regulatory filing, adding that court precedents supported its stance.
Castrol India Stock Performance
Castrol India shares are trading at ₹225.03 or 2.34% higher on July 14, 2025, at 1:35 PM IST. Castrol India shares have gained 93% over the last five years, declined 14% in the previous year, increased 11% year-to-date, and rose 7.44% during the last month.
About Castrol India
Castrol India Ltd, listed on the NSE and BSE, is a key player in the lubricants segment and part of the global BP Group. It is included in the NIFTY ENERGY index. The company was listed on March 14, 2014. It has a face value of ₹5 and maintains a strong brand presence across the automotive and industrial lubricant markets.
REF: https://nsearchives.nseindia.com/corporate/CASTROLINDIA_11072025171711_SE_Intimation_Outcome_of_MVAT_Litigation_11_July_2025.pdf
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