The company reported a double-digit revenue growth of over 11%, surpassing market expectations and setting a positive tone for the entire tyre sector.
Despite a slight year-on-year dip in its earnings before interest, tax, depreciation and amortisation (EBITDA) and margin, Ceat’s performance exceeded estimates by brokerage house Nuvama. The company posted an EBITDA of ₹388 crore, well above the forecast of ₹342 crore, while margin stood at 11.3%, compared to the expected 10%.
Looking ahead to FY26, Ceat remains upbeat, projecting continued double-digit growth, driven largely by its premium tyre segment.
The company has recently launched three new premium tyre models, which are currently contributing modestly to volumes but are expected to scale up significantly. Ceat believes these high-end offerings will be crucial in expanding its market share and boosting profitability in the quarters ahead.
Another positive for the industry has been stable raw material costs in the March quarter. The trend is expected to hold through the first quarter of the financial year 2026, but the real margin tailwind is projected to emerge from the second quarter onwards, as raw material prices are anticipated to cool off more substantially. “While in Q1, the raw material basket may see a minor dip, from Q2 we expect a bigger drop that should support margin expansion,” Ceat said.
Currency dynamics are also turning favourable. The rupee has appreciated notably in recent weeks, climbing to its strongest level since December 2024. This comes after a period of rupee depreciation in the first quarter of the calendar year, which had inflated import costs and impacted inventory valuations across the sector. With the rupee now hovering around 85 against the Q4 average of 87, companies are expected to benefit from improved input cost economics moving forward.
Major tyre players, Ceat, Apollo Tyres, MRF and Balkrishna Industries are trading higher in the range of 3-9%.
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