CEAT Ltd, established in 1958 and part of the RPG Group since 1982, is one of India’s largest and fastest-growing tyre manufacturers. The company has built a strong presence across passenger, commercial, and two-wheeler tyre segments and was recognized among the Top 25 Best Workplaces in Manufacturing by GPTW in 2022. Presenting below its Q1 FY26 Earnings Results.
Q1 FY26 Earnings Summary
- Revenue: ₹3,529 crore, up 10.52% year-on-year YoY from ₹3,193 crore in Q1 FY25.
- Total Expenses: ₹3,375 crore, up 12.35% YoY from ₹3,004 crore.
- Consolidated Net Profit PAT: ₹112 crore, down 27.27% YoY from ₹154 crore in the same quarter last year.
- Earnings Per Share EPS: ₹27.80, down 27.05% from ₹38.11 YoY.
Operational & Strategic Update
- Revenue Growth: The topline grew driven by higher volumes across passenger vehicle tyres and two-wheeler tyres, supported by steady replacement demand and OEM partnerships.
- Cost Pressure: Sharp increase in raw material costs, freight, and other operating expenses offset revenue gains and compressed margins.
- Profitability Impact: Net profit declined 27% YoY as higher input costs and limited price pass-through weighed on bottom-line performance.
- Market Segments: Passenger car and SUV radial tyres recorded healthy demand, while demand in the commercial and truck-bus tyre segment was relatively muted.
- Strategic Initiatives: Focus continued on product innovation such as high-performance and fuel-efficient tyres, along with expansion of premium product offerings.
- Operational Efficiency: Investments in manufacturing technology, automation, and cost optimization remained a priority to counter inflationary pressures.
Corporate Developments
CEAT’s Q1 FY26 results reflect a mixed performance — healthy double-digit revenue growth, but significant pressure on profitability due to rising costs. The company remains well positioned with a broad product portfolio and brand strength, though the near-term focus will need to be on margin restoration.
Looking Ahead
The company aims to leverage expanding demand for premium and fuel-efficient tyres, scale exports, and enhance supply chain efficiency. With raw material prices showing early signs of softening, CEAT expects margin improvement in the coming quarters, alongside sustained topline growth driven by strong domestic automotive demand.
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