Ceat (500878) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 consolidated revenue reached Rs. 3,529.4 crore, up 10.5% YoY and 3.2% QoQ, driven by strong OEM and replacement segment growth.

• Standalone net profit was Rs. 135.4 crore; consolidated PAT was Rs. 112.3 crore, up QoQ but down YoY.

• EBITDA margin stood at 10.9%, down 56 bps QoQ and 122 bps YoY, impacted by higher raw material and marketing costs.

• Recognized among the top 10 strongest global tyre brands and awarded the EcoVadis Silver Medal for sustainability.

• Growth was supported by high capacity utilization and market share gains in premium and two-wheeler categories.

Financial highlights

• Gross margin for Q1 FY26 was 36.8%, down 68 bps QoQ and 245 bps YoY, mainly due to increased raw material costs.

• EBITDA for Q1 was Rs. 386 crore, with consolidated EBITDA margin at 10.9%.

• PAT for Q1 was Rs. 112.3 crore, up 13.8% QoQ but down 27.2% YoY.

• Capex for the quarter was Rs. 231 crore, fully funded through internal accruals.

• Debt reduced to Rs. 1,814 crore, with debt/equity at 0.40x and debt/EBITDA at 1.2x.

Outlook and guidance

• Double-digit revenue growth expected for FY26, with higher growth in two-wheeler and commercial vehicle replacement segments.

• International business is expected to rebound in Q2, especially in Europe, as destocking ends and seasonal demand picks up.

• Management anticipates benefits from premiumisation, electrification, and international recovery as geopolitical stability returns.

• Raw material costs are expected to decline by 1-2% in Q2, supporting margin improvement.

• Capex guidance for FY26 is around Rs. 1,000 crore, including maintenance and expansion projects.