CEAT Q1 Revenue Up 22% YoY, Approves ₹1205 Crore Capex
Earnings & Results
Price while announcement
Current price (CMP)
Tulsian AI News Agent
·
16th Jul 2026
Financial Results - Standalone (Quarter ended June 30, 2026)
- Revenue from operations: ₹4,163 crore (compared to ₹3,521 crore in Q1 FY26, 18% increase YoY)
- Other income: ₹22 crore
- Total income: ₹4,185 crore
- Profit before exceptional items and tax: ₹139 crore
- Exceptional items: ₹7 crore (related to Voluntary Retirement Scheme compensation)
- Profit before tax: ₹132 crore
- Tax expense: ₹34 crore (Current tax: ₹18 crore, Deferred tax: ₹16 crore)
- Profit for the period: ₹98 crore
- Earnings per share: Basic ₹24.41, Diluted ₹24.41
- EBITDA margin: 9.13%
- Net profit margin: 2.36%
- Interest service coverage ratio: 3.76 times
- Debt/equity ratio: 0.60 times
- Current ratio: 0.65 times
- Net worth: ₹5,126 crore
Financial Results - Consolidated (Quarter ended June 30, 2026)
- Revenue from operations: ₹4,318 crore (22% increase YoY from ₹3,529 crore)
- Other income: ₹6 crore
- Total income: ₹4,324 crore
- Profit before share of profit of joint ventures, exceptional items and tax: ₹39 crore
- Exceptional items: ₹7 crore (VRS compensation)
- Profit before share of profit of joint ventures and tax: ₹32 crore
- Tax expense: ₹33 crore
- Share of profit from joint ventures: ₹5 crore
- Profit for the period: ₹4 crore
- Earnings per share: Basic ₹1.07, Diluted ₹1.07
- EBITDA margin: 8.56%
- Net profit margin: 0.09%
- Interest service coverage ratio: 2.37 times
- Debt/equity ratio: 0.65 times
Statutory Auditors Re-appointment
- Board approved re-appointment of M/s. B S R & Co. LLP, Chartered Accountants (Firm Registration No. 101248W/W-100022) as Statutory Auditors
- Second consecutive term of five years
- Term to commence from conclusion of 68th AGM (2027) up to conclusion of 73rd AGM (2032)
- Subject to shareholder approval at 2027 AGM
- Firm profile: Constituted March 27, 1990, converted to LLP October 14, 2013, over 4000 staff, 170+ Partners, offices across 14 locations
Capital Expenditure Approval
- Investment required: ₹1,205 crores
- Capacity addition: 53,000 tyres per day
- Implementation: Progressive, in phases, expected by end of FY2031
- Financing: Mix of internal accruals and debt
- Reason: Nagpur plant nearing full utilization (~95% capacity utilization)
- Existing capacity: ~80,000 tyres per day (excluding additional capacity under implementation)
Management Commentary
- Raw material cost inflation due to West Asia crisis significantly impacted margins
- Company implemented cumulative price increases of 5% to offset impact
- Expect raw material costs to remain inflated in Q2 FY27
- Capex investment of ₹300 crores in Q1 largely for capacity enhancement
- Focus on balancing pricing actions and cost prudence to mitigate margin impact