Ceat Q3FY26 results: Profit soars 60% to ₹156 crore, revenue up 26%

Ceat's profit, however, slumped 16.2 per cent sequentially due to costs related to the implementation of new labour codes and an exceptional-item profit in Q2FY26

Tyre manufacturer CEAT on Monday reported a 60 per cent jump in its consolidated net profit to ₹155.77 crore in the third quarter of the financial year 2025-26 (Q3FY26). During the same quarter last year, the company reported a profit of ₹97.11 crore. On a sequentail basis, however, profit slumped 16.2 per cent from ₹185.95 crore. The Q2FY26 profit surge was due to the full integration of Camso – a premium brand in construction equipment tyres and tracks –  into Ceat's profile. 

Ceat’s revenue from operations for the quarter stood at ₹4,157.05 crore, up 26 per cent from ₹3,299.9 crore. Sequentially, revenue increased 10.2 per cent from ₹3,772.65 crore. Ceat’s earnings before interest, taxes, depreciation and amortisation (Ebitda) margin stood at 13.66 per cent, the company said in a BSE filing.

 

“It’s been a good quarter, supported by strong revenue growth across all segments. Reduction in GST rates has improved sentiment in the domestic market, and we have had some opportunities opening up in international markets as well. We expect the positive momentum to sustain in the coming quarter and help us close the year strongly,” said Arnab Banerjee, managing director and chief executive officer of Ceat.

 

The Centre introduced new goods and services tax (GST) rates in September, reducing the rate on most tyres from 28 per cent to 18 per cent and on tractor tyres from 18 per cent to 5 per cent.

 

The company also reported a one-time exceptional cost of ₹58 crore related to the implementation of India’s new labour codes.

 

“Strong top-line growth in Q3 drove operating leverage, leading to an improvement in operating margins. Stable commodity prices helped sustain gross margins. We have recognised a provision of ₹58 crore in Q3 towards the impact of new labour codes. We maintained our capex to support our growth during the quarter, largely funded by internal accruals, leading to debt sustaining at the previous quarter level,” said Kumar Subbiah, chief financial officer of Ceat.

Capacity expansion

Ceat’s board also approved a ₹1,314 crore investment to expand its Kancheepuram plant’s production capacity from 9.5 million to around 13 million tyres annually. “This investment will be funded by a mix of internal accruals and debt,” the Mumbai-based company said.

 

Shares of Ceat closed at ₹3,881.55 apiece on the BSE on Monday.