C

CEAT Ltd

Q2 FY26

CEAT Q2 FY26 earnings call: Revenue & Margins

Q2 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹3,295

Market cap₹13.3K Cr

P/E21.0

Updated16 Oct 2026

Read4 min read

The short version

CEAT expects continued double-digit growth momentum in sales and revenues. CEAT expects continued double-digit growth momentum in the near term, driven by favorable tax policies like the GST rate reduction and rural demand strength (Page 5, 6).

From CEAT Ltd's Q2 FY26 earnings-call transcript · updated 16 Oct 2026.

Revenue & Sales Performance

CEAT expects continued double-digit growth momentum in sales and revenues.
Replacement demand is anticipated to move in the mid-single-digit range for MHCV and truck bus tyres.
Two-wheeler segment projected growth is around 7-8%.
Passenger car segment growth is expected to be zero to very low single-digit, with some uplift due to GST reduction.
OEM MHCV growth is forecasted at zero to low single-digit.
OEM passenger car segment is optimistic with 6-8% growth outlook.
International business is growing strongly, driven by demand in Europe, Africa, and LATAM, with mid-teens growth in key clusters.
CAMSO acquisition to drive premium OHT segment expansion, with full control of value chain expected in 5-6 quarters.

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Profitability & Margins

CEAT expects continued double-digit growth momentum in the near term, driven by favorable tax policies like the GST rate reduction and rural demand strength (Page 5, 6).
The CAMSO acquisition is projected to be margin-accretive in the medium term, supporting operating earnings growth once full control of the value chain is established in about six quarters (Pages 4, 12).
Raw material costs are expected to remain stable or slightly lower in Q3 and Q4, aiding margin sustainment (Pages 6, 9).
Debt levels, though temporarily higher due to CAMSO acquisition and CAPEX, are planned to be managed with target debt-to-EBITDA not exceeding 3x and debt-equity below 1x, supporting financial stability (Page 12).

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Capital Expenditure Plans

Total CAPEX in H1 FY'26: Rs. 415 crores.
Rs. 185 crores spent in Q2, part of Rs. 415 crores for H1.
CAMSO acquisition: Rs. 236 crores toward intangibles (trademarks, patents).
Rs. 100 crores allocated to R&D, IT, plant maintenance, molds.
Truck and Bus Radial tyre expansion ongoing with Rs. 50 crores spent; capacity planned to increase to ~2,000 tyres.
Rs. 70 crores spent on Ambernath plant expansion; Rs. 160 crores combined for passenger car downstream & MCS, plus Rs. 40 crores for debottlenecking.
Total expected CAPEX for FY'26 is around Rs. 1,000 crores.

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Fundraising & Capital Structure

CEAT's consolidated debt stood at Rs. 2,944 crores as of September 30, 2025, up by about Rs. 1,130 crores from June 30, primarily due to funds raised for capital expenditure and the CAMSO acquisition.
During Q2 FY '26, the company invested Rs. 272 crores through equity capital and Rs. 702 crores through debt.
The management indicated they have sufficient leverage to provide necessary growth capital going forward.
They have a framework to keep peak debt-to-EBITDA ratio below 3x and debt-equity below 1x.
Current debt-to-EBITDA is around 1.7x and debt-equity between 0.6-0.7x.

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Order Book & Pipeline

The transcript does not explicitly provide specific details about CEAT Limited's current or expected order book or pending orders.
However, insights on capacity utilization and ramp-up plans are shared:
CAMSO plant capacity utilization currently at 50%, expected to ramp up gradually over the next few quarters.
Full control of CAMSO value chain expected in around 5-6 quarters.
Expansions ongoing, including truck and bus radial tyre capacity targeted to reach about 2,000 tyres progressively.
Overall capacity utilization across CEAT is around 80% to 85%.
Growth outlook:

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CEAT Ltd — Quarterly revenue & net profit

Revenue Net profit

Dec 2024

Mar 2025

Jun 2025

Sep 2025

Dec 2025

Mar 2026

Reported quarterly figures (₹ Cr). Latest: revenue ₹4.2K Cr, net profit ₹244 Cr. Revenue and profit are scaled separately — hover a quarter for exact figures.

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Frequently Asked Questions

What were CEAT Ltd Q2 FY26 results?

CEAT expects continued double-digit growth momentum in sales and revenues. CEAT expects continued double-digit growth momentum in the near term, driven by favorable tax policies like the GST rate reduction and rural demand strength (Page 5, 6).

What is CEAT Ltd share price analysis?

CEAT Ltd currently shows a neutral. The stock trades at a P/E of 20.9 with a market cap of ₹13,328 Cr. Investors should review the full earnings analysis for detailed insights.

Is CEAT Ltd planning capital expenditure?

Total CAPEX in H1 FY'26: Rs.

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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.