Ceat shares rise 4% after Camso acquisition with $171 mn investment

Ceat shares jumped 4 per cent it acquired Michelin Group's Camso Construction Compact Line business, which includes two plants in Sri Lanka

Shares of Ceat Ltd. surged over 4 per cent on Tuesday after it acquired Michelin Group's Camso Construction Compact Line business, including its Midigama and Kotugoda plants in Sri Lanka. 

 

The tyre maker, Ceat stock rose as much as 4.16 per cent during the day to ₹3,336.4 per share, the biggest intraday rise since August 18 this year. The stock pared gains to trade 3.64 per cent higher at ₹3,319.8 apiece, compared to a 0.31 per cent advance in Nifty 50 as of 09:50 AM. 

 

Shares of the company rose for the fourth straight session and currently trade at 2 times the average 30-day trading volume, according to Bloomberg. The counter has risen 2.6 per cent this year, compared to a 4.4 per cent advance in the benchmark Nifty 50. Ceat has a total market capitalisation of ₹13,393.03 crore.  

  Track LIVE Stock Market Updates Here

 

Ceat Camso Acqusition

The company announced it acquired Michelin Group's Camso Construction Compact Line business, including its Midigama and Kotugoda plants in Sri Lanka, advancing its Off-Highway Tyres (OHT) growth strategy, according to an exchange filing. 

 

The transaction also grants the tyre maker's global ownership of the Camso brand, which will be permanently assigned after a three-year licensing period. Ceat will invest $171 million in Sri Lanka through this acquisition, securing 1,483 jobs and strengthening the country’s position as a global OHT hub, the statement said. 

 

With Camso's established equity in Europe and North America, Ceat will gain access to more than 40 global original equipment manufacturers (OEMs) and premium distributors, accelerating its ambition to become a leading global player in the high-margin OHT segment. Over the past decade, Ceat has expanded its agricultural portfolio, and with Camso's expertise in compact construction equipment tracks and tyres, the company will broaden its international footprint.

 

"We are confident that our enhanced strengths in products, capabilities, and markets will enable us to enter new geographies, expand our portfolio, and drive sustainable growth in the years ahead," Arnab Banerjee, managing director and chief executive officer, Ceat, said.  

 

Ceat Q1 results 

The company reported a 27.7 per cent year-on-year (Y-o-Y) decline in net profit, which dropped to ₹112 crore in Q1FY26, compared to ₹154 crore in the same quarter last year (Q1FY25). Its revenue, however, rose 10.5 per cent Y-o-Y to ₹3,529 crore, up from ₹3,193 crore, indicating continued growth in topline performance. 

 

Ebitda increased marginally by 1.3 per cent Y-o-Y to ₹387 crore in Q1FY26, against ₹383 crore in the corresponding quarter of the previous year (Q1FY25). Ebitda margin, meanwhile, declined 100 basis points (bps) to 11 per cent from 12 per cent Y-o-Y.