CEAT Limited Earnings Summary — Q4 FY2026
CEAT Limited Reports Record Quarterly Profits and Strong Revenue Expansion in Q4 FY2026
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 7 consecutive quarters.
- Revenue of ₹4,318 Cr is 22.4% higher year-on-year.
- Revenue has compounded at 17.7% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹4 Cr is 96.4% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -76.9% annualised across the period.
- Operating margin stands at 8.4% in Q1 FY2027.
- Operating margin compressed by 252 bps year-on-year.
- Over the last two years operating margin has contracted by 354 bps.
- PBT margin is 0.7%.
- Expenses grew 25.8% against revenue growth of 22.4%.
- Operating profit of ₹365 Cr is 5.7% lower year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 50/100 (Moderate) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 4,318 | 4,219 | 4,157 | 3,773 | 3,529 | 3,421 | 3,300 | 3,305 | 3,193 | 2,992 |
| Expenses | Improving | 3,953 | 3,626 | 3,594 | 3,269 | 3,142 | 3,033 | 2,959 | 2,942 | 2,810 | 2,600 |
| Operating Profit | Stable | 365 | 593 | 563 | 503 | 387 | 388 | 341 | 362 | 383 | 392 |
| Operating Margin | Softening | 8.4% | 14.1% | 13.6% | 13.3% | 11.0% | 11.3% | 10.3% | 11.0% | 12.0% | 13.1% |
| Other Income | Volatile | -1 | 16 | -52 | 4 | 2 | -33 | 3 | 3 | 14 | -55 |
| Interest | Strong Uptrend | 146 | 85 | 105 | 87 | 82 | 74 | 75 | 66 | 62 | 62 |
| Depreciation | Improving | 186 | 184 | 188 | 174 | 151 | 152 | 141 | 137 | 132 | 136 |
| Profit Before Tax | Improving | 32 | 340 | 218 | 246 | 156 | 129 | 128 | 162 | 203 | 139 |
| Tax | Improving | 33 | 101 | 68 | 68 | 42 | 36 | 36 | 46 | 54 | 46 |
| Net Profit | Volatile | 4 | 244 | 156 | 186 | 112 | 99 | 97 | 122 | 154 | 109 |
| Net Margin | Volatile | 0.1% | 5.8% | 3.8% | 4.9% | 3.2% | 2.9% | 2.9% | 3.7% | 4.8% | 3.6% |
Key Takeaways
- CEAT achieved its highest quarterly revenue in history, crossing the INR 4,200 crore mark in Q4 FY2026.
- Net Profit surged by 146% year-on-year, driven by operational efficiencies and improved product mix despite commodity headwinds.
- Operating Profit Margins (OPM) stabilized at 14%, showing a 300 basis point expansion compared to the same quarter last year.
- The company continues to face a heavy interest burden, with interest costs reaching INR 85 Cr in the latest quarter.
- Borrowings have significantly increased to INR 3,272 Cr by March 2026, up from INR 2,136 Cr in March 2025, to fund capacity expansions.
- Full-year FY2026 performance shows a strong recovery with ROCE improving toward the 19-20% range.
- Premiumization efforts in the 2-wheeler and passenger vehicle segments are contributing to resilient top-line growth.
Management Guidance
Management remains focused on increasing market share in the Off-Highway Tyres (OHT) and export segments to drive higher margins. Strategic emphasis is on digital transformation and maintaining cost-control measures.
Sentiment Shift
Improving
The company has transitioned from a cyclical low in early FY25 to consistent margin and profit growth over the subsequent four quarters.
Outlook
The outlook is positive driven by steady domestic demand and expansion into higher-margin international markets, though rising debt levels and commodity price volatility remain key monitorables.
From the Annual Report (Key Quotes)
“CEAT Limited is currently pivoting towards premiumization and higher-margin segments like Off-Highway Tyres (OHT) and exports.”
“Strategic vision is clear regarding digital transformation and sustainability goals.”
“Despite consistent sales performance, its bottom-line health remains sensitive to cyclical commodity cycles.”
Official Quarterly Documents
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This summary is AI-generated from CEAT Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.