Ceat Q1 FY26 results: Profit falls 27% to ₹112 crore, revenue up 10.5%

The company's revenue for the quarter rose to ₹3,529.41 crore, up 10.5 per cent y-o-y from ₹3,192.82 crore and 3.2 per cent sequentially from ₹3,420.62 crore

Ceat on Thursday reported a consolidated net profit of ₹112.45 crore for Q1 FY26, down 27 per cent year-on-year (y-o-y) from ₹154.16 crore in Q1 FY25. However, the tyre maker’s profit improved sequentially from ₹99.49 crore in Q4 FY25, according to a BSE filing by the company.

 

The company's revenue for the quarter increased to ₹3,529.41 crore, up 10.5 per cent y-o-y from ₹3,192.82 crore and 3.2 per cent sequentially from ₹3,420.62 crore.

 

On the expenditure end, the company spent ₹3,375.10 crore in the quarter, up 12.4 per cent from ₹3,003.56 crore in the same quarter last year. Sequentially, the expenses increased 3.6 per cent from ₹3,259.26 crore.

 

 

Commenting on the quarter performance, Arnab Banerjee, managing director and chief executive officer at Ceat, said, “We continue to grow at a strong pace with double-digit growth in top-line, driven by OEM and replacement segments. Looking ahead, we are well poised to ride the premiumisation and electrification trend in the domestic market, and renew our growth in international markets with stability in the geopolitical situation.”

 

The company also announced the re-appointment of Banerjee for a further term of two years, starting April 1, 2026.

 

Adding to it, Chief Financial Officer Kumar Subbiah said that the revenue growth came on the back of an increase in demand from original equipment manufacturers (OEM) and replacement segments.

 

"As Q1 is a marketing-heavy quarter with significant marketing costs associated with IPL, operational margins saw a slight dip. Efficient cash flow management helped in gross debt coming down by ₹100 crore during the quarter," Subbiah said.

 

Ceat plans ₹450 crore capex for plant expansion

 

Separately, the company proposed a capital expenditure of ₹450 crore to expand capacity at its Chennai plant by around 35 per cent in the passenger car and utility vehicle (PCUV) segment. The expansion, expected to be completed by the end of FY 2027, will be funded through a mix of internal accruals and debt, according to the BSE filing.

 

Currently, the Ceat's Chennai plant has the capacity of 700,000 tyres per annum, while the existing capacity utilisation stands at 80 per cent.

 

Shares of Ceat closed at ₹3,855.25 apiece on the BSE on Thursday.

 

Ceat Q1 result highlights

 

• Revenue from operations: ₹3,529.41 crore
• Net profit for the period: ₹112.45 crore
• Earnings per share (EPS): ₹27.8 (basic and diluted)