CEAT Q1 Net Profit Falls 27%, Revenue Rises 10.5% YoY

CEAT Limited reported a net profit of ₹112.3 crore for the first quarter of FY26, registering a 27.2% decline from ₹154.2 crore in Q1 FY25. Despite the dip in profitability, the company posted a 10.5% year-on-year increase in consolidated revenue, which rose to ₹3,529.4 crore for the quarter ended 30 June 2025. EBITDA margin came in at 10.9%.

On a standalone basis, CEAT reported a net profit of ₹135.4 crore in Q1 FY26, a decline of 9.2% from ₹149.2 crore in the same quarter last year. Revenue rose 11.1% year-on-year to ₹3,520.7 crore. Reported EBITDA margin was 11.1%.

Commenting on the performance, Arnab Banerjee, Managing Director and CEO of 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.”

CFO Kumar Subbiah noted that Q1 saw high-capacity utilisation across all manufacturing facilities. “This growth came on the back of increased demand from OEM and replacement segments. As Q1 is a marketing-heavy quarter with significant promotional costs—especially due to the IPL—operational margins saw a slight dip. However, efficient cash flow management helped bring down gross debt by ₹100 crore during the quarter.”

CEAT is a leading global tyre manufacturer with a presence in over 110 countries. The company produces more than 41 million high-performance tyres annually for two- and three-wheelers, passenger cars, utility vehicles, commercial vehicles, and off-highway vehicles.