Ceat Limited has announced its financial results for the first quarter of FY2026-27, reporting a 22 per cent year-on-year increase in consolidated revenue despite margin pressures caused by rising raw material costs. The tyre manufacturer also announced a major investment of Rs. 1,205 crore to expand its two-wheeler tyre production capacity.
Ceat Q1 FY2026-27 financial performance
For the quarter ended June 30, 2026, Ceat reported consolidated revenue of Rs. 4,318 crore, up 22 per cent compared to the same period last year. However, profitability came under pressure as EBITDA margin stood at 8.56 per cent, while net profit was reported at Rs. 4 crore.
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On a standalone basis, the company posted revenue of Rs. 4,163 crore, marking an 18 per cent year-on-year growth. Standalone EBITDA margin came in at 9.13 per cent, while net profit stood at Rs. 98 crore.
Raw material costs weigh on margins
Commenting on the results, Arnab Banerjee, Managing Director and CEO of Ceat Limited, said the first quarter was challenging for the tyre industry due to rising raw material prices triggered by the ongoing West Asia conflict.
{{/usCountry}}Commenting on the results, Arnab Banerjee, Managing Director and CEO of Ceat Limited, said the first quarter was challenging for the tyre industry due to rising raw material prices triggered by the ongoing West Asia conflict.
{{/usCountry}}According to Banerjee, the company implemented calibrated price hikes to partially offset higher input costs while maintaining focus on demand and market share. He added that strong demand across product segments and high capacity utilisation helped Ceat deliver double-digit revenue growth despite pressure on operating margins.
Looking ahead to the second quarter, Banerjee said the company will continue to adopt a disciplined pricing strategy while focusing on profitable growth.
Ceat increases prices, continues capex
Chief Financial Officer Kumar Subbiah said commodity cost inflation significantly impacted the company's raw material expenses during the quarter, resulting in lower margins. He revealed that Ceat has already implemented cumulative price increases of 5 per cent and expects input costs to remain elevated through the second quarter.
Subbiah also stated that the company invested around Rs. 300 crore in capital expenditure during the quarter, primarily to expand manufacturing capacity. At the same time, Ceat maintained strict control over discretionary spending and routine capital expenditure to preserve cash and support profitability.
Rs. 1,205 crore investment approved for two-wheeler tyre capacity
The company's Board of Directors has approved an investment of Rs. 1,205 crore to expand its manufacturing capacity in the two-wheeler tyre segment. The expansion is aimed at supporting future growth opportunities as demand for two-wheeler tyres continues to rise.
Ceat currently manufactures over 41 million tyres annually, serving segments including two and three-wheelers, passenger vehicles, utility vehicles, commercial vehicles and off-highway vehicles.