CEAT Q2 Revenue Rises 26% to Rs 4,762 Crore Amid Higher Input Costs
CEAT Limited (NSE:CEATLTD) posted a 26% year-on-year increase in consolidated revenue to Rs 4,762 crore for the second quarter ended September 30, 2026. Standalone revenue grew 23% to Rs 4,548 crore. Despite top-line momentum driven by strength in premium tyres, consolidated net profit stood at Rs 112 crore with an EBITDA margin of 9.5%, while standalone net profit reached Rs 164 crore with a 10.14% margin.
Profitability remained under pressure as elevated raw material costs, driven in part by conflict in West Asia, offset strong sales performance. To manage expenses, the tyre maker focused on strict operational discipline while continuing heavy investments. Capital expenditure reached nearly Rs 490 crore during the quarter to expand manufacturing capacity in high-demand product lines, while dividend distributions and capex spending contributed to increased debt levels.
Looking ahead to the third quarter and the second half of FY2026-27, management expects input cost pressures to persist. To counter these headwinds, the company plans to introduce measured price increases, refine its product mix, and target double-digit revenue growth through the rest of the financial year.
Key points
- Consolidated Q2 revenue rose 26% year-on-year to Rs 4,762 crore, while net profit reached Rs 112 crore.
- Standalone revenue grew 23% to Rs 4,548 crore with a standalone net profit of Rs 164 crore.
- Premium product growth boosted sales, but higher raw material costs weighed on EBITDA margins.
- Capital expenditure totaled nearly Rs 490 crore to expand capacity in high-utilisation segments.
- Management plans calibrated price increases in H2 FY2026-27 to target double-digit top-line growth.
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What were CEAT Limited's Q2 revenue and net profit figures?
Consolidated revenue rose 26% year-on-year to Rs 4,762 crore for the second quarter ended September 30, 2026. Consolidated net profit stood at Rs 112 crore.
Why did raw material costs affect CEAT's margins in Q2?
Ongoing conflict in West Asia elevated raw material prices, creating cost pressures that squeezed consolidated EBITDA margins to 9.5%.
How does CEAT plan to handle rising input costs in the second half of FY26?
CEAT plans to implement calibrated price increases, optimize its product mix, and enforce tighter cost controls while aiming for double-digit revenue growth.