CEAT Q2FY26 Profit Jumps 52.9% YoY to ₹185.7 Crore; Revenue Rises 14.2% to ₹3,772.7 Crore on Strong Domestic and International Demand

Mumbai, 17 October 2025: CEAT Limited (NSE: CEATLTD, BSE: 500878), part of the RPG Group, delivered a robust performance in Q2FY26, with consolidated net profit soaring 52.9% year-on-year (YoY) to ₹185.7 crore. Revenue from operations increased 14.2% YoY to ₹3,772.7 crore, reflecting strong growth across OEM and international segments, underpinned by improved realisations and lower raw material costs.

Consolidated Financial Performance Shows Broad-Based Growth Across Segments

CEAT’s gross margin expanded 352 basis points YoY to 40.9%, supported by favourable raw material costs and disciplined pricing strategies. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 38.8% YoY to ₹510.6 crore, translating into an EBITDA margin of 13.5%, up 240 bps from Q2FY25. Profit before tax (PBT) surged 51.2% YoY to ₹253.7 crore. Finance costs increased 30.9% YoY to ₹87 crore, primarily due to additional borrowings for the Camso acquisition, while depreciation climbed 26.8% YoY to ₹173.9 crore, reflecting a higher asset base post-integration.

Domestic and International Market Momentum Drives Revenue Growth to ₹3,772.7 Crore

The company’s revenue growth was led by OEM and international segments, buoyed by healthy demand for commercial and passenger tyres. CEAT’s strategic focus on premiumisation, particularly following the acquisition of Camso’s Off-Highway tyre and tracks business in September 2025 through its subsidiary CEAT OHT Lanka Pvt. Ltd., strengthened its global footprint. Additionally, government policy support, including GST rate reductions on tyres, further contributed to strong topline performance.

Innovation and Sustainability Efforts Boost Operational Strength

CEAT launched the SecuraDrive CIRCL, India’s first passenger car tyre produced with up to 90% sustainable materials, signalling its commitment to ESG initiatives. The company’s sustainability and operational excellence were recognised with the “Great Indian ESG Organisation of the Year (Manufacturing)” award at the 2025 ESG & Cleantech Summit. Strategic capex outflow of ₹423 crore in Q2FY26 supports both expansion and technology-driven projects.

Balance Sheet and Debt Management Highlight Financial Resilience

Debt stood at ₹2,944 crore, maintaining a healthy debt-to-equity ratio of 0.64x, while continued focus on margin management and working capital efficiency strengthened financial resilience. Gross margin improvements, coupled with pricing discipline and lower input costs, contributed to sustained profitability and operational stability.

CEAT Share Price Shows Moderate Gains Post-Q2 Earnings Announcement

CEAT share price opened at ₹3,710 and traded in a range of ₹3,655.90 to ₹3,775 on 17 October 2025, with the last recorded price at ₹3,702, reflecting a modest gain of ₹3 (0.081%) by 3:30 pm IST. The stock’s market capitalisation stands at ₹15,100 crore, with a 52-week high of ₹4,044 and a low of ₹2,343.05, demonstrating resilience in market valuation amid strong quarterly performance.

CEAT’s Q2FY26 results highlight strong revenue and profit growth driven by strategic acquisitions, domestic and international market expansion, and sustainability-focused innovations. Improved margins, robust operational execution, and prudent debt management underscore the company’s capability to maintain financial stability while pursuing long-term strategic objectives.

REF:https://nsearchives.nseindia.com/corporate/CEATLTD_17102025150512_BM_Outcome17102025finalsigned.pdf

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