CEAT Q2FY26 profit jumps 52.6% on robust demand, GST cut boosts outlook
Mumbai: Indian tyre major CEAT Ltd reported a 52.6% rise in net profit for the July–September quarter (Q2 FY26), driven by stronger vehicle sales following a reduction in the goods and services tax (GST) on tyres and automobiles, as well as festive demand, according to a Reuters report.
The company’s consolidated net profit rose to ₹185.7 crore (₹1.86 billion or $21.2 million) for the quarter ended September 30, compared to ₹122 crore a year earlier.
Consolidated revenue from operations climbed 14.2% year-on-year (Y-o-Y) to ₹3,772.7 crore, while EBITDA margin stood at 13.5%.
Total expenses increased 12.2%, with the cost of materials consumed rising 9.6%, reflecting higher input costs amid steady demand.
On a standalone basis, CEAT reported revenue of ₹3,701.1 crore, up 12.2% Y-o-Y, while EBITDA margin improved slightly to 13.7%.
Standalone net profit came in at ₹202.2 crore, underscoring the company’s strong operational performance.
Commenting on the results and market environment, Arnab Banerjee, MD & CEO, CEAT Limited, said,
“We have maintained strong double-digit growth this quarter, with revenue rising by approximately 12%. One of the key developments in this quarter has been reduction in GST rates on tyres and vehicles, which we hope will have positive impact on demand across domestic categories.
"We have also been excited with Camso fully integrating into the CEAT family effective Sept, marking a significant milestone in our global premiumisation strategy. Looking ahead, with a positive growth momentum, we look forward to double-digit growth in the second half of the year.”
The integration of Camso, a global off-highway tyre manufacturer, marks an important milestone in CEAT’s premiumisation and global expansion strategy.
The company expects this move to strengthen its position in overseas markets and improve its product mix.
CFO Kumar Subbiah said the quarter was marked by both topline growth and margin expansion, despite higher debt levels.
“Overall, Q2 has been a strong quarter for us, marked by topline growth and expansion of margins. Our debt has increased largely due to acquisition of Camso’s assets and the payout of dividends," Subbiah said.
"Our balance sheet continues to be healthy even after the increase in debt level and well-positioned to provide necessary capital to support future growth,” he added.
With continued momentum in vehicle sales, festive demand, and tax incentives, CEAT expects to maintain double-digit growth in the second half of FY26.
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