CEAT Ltd

- No explicit mention of new fundraising through equity in the call. - Debt levels have been stable around INR 3,000 crores for the last 3 quarters. - The company plans capex of INR 1,350-1,400 crores for standalone Indian operations and an additional ~$25-30 million for CAMSO upstream business in FY '27. - For FY '27 Q1, the company will be cautious with cash generation and margins; debt levels are expected to remain stable initially. - If margins normalize from Q2 onward, the company may allow slight increases in debt levels to support capex. - The company emphasizes maintaining responsible leverage while funding growth capital needs, so incremental debt may be utilized if required. - No clear mention of planned equity issuance to fund capex or operations.

- Standalone capex for FY '27 is estimated at INR1,300 to INR1,400 crores to ensure adequate capacities for demand, up about 25% from INR1,076 crores in FY '26. - Initial capex in Q1 FY '27 will be cautious (INR200-250 crores), with scaling up expected in later quarters as conditions normalize. - Additional capex of around $25-30 million (~INR200+ crores) planned for CAMSO upstream facility, especially mixers and calenders, mostly to be spent in FY '27. - CAMSO capex forms part of the earlier business case; about three-quarters expected to be spent in the current year. - Capital investments aim at capacity expansion, upstream integration, and improving service capabilities, particularly in CAMSO operations. - Capex decisions to be aligned with cash flow generation and debt management to maintain leverage responsibly.

- FY '27 expected to see moderation in certain segments due to price hikes (e.g., truck bus radial replacement demand to moderate to low single digits but not degrowth). - PCR replacement growth expected to gradually improve from 1-2% to around 3-5%. - 2-wheeler replacement growth to remain in single to high single digits despite possible moderation from price increases. - CAMSO business turnover expected to ramp up in second half of FY '27, with margins improving by FY '28 as upstream manufacturing is brought in-house. - OEM demand growth to normalize to single digits; aftermarket for CAMSO expected to grow faster in second half FY '27. - International business showed strong comeback with high-teens growth; continued momentum anticipated. - Overall, structural demand drivers remain in place, supporting resilient and sustained growth.

- FY '27 outlook indicates near-term headwinds from input cost inflation but structural demand drivers remain strong, supporting future growth. - Q1 expected to be turbulent with cautious capex (INR200-250 crores) and steady debt; higher capex planned later in the year (INR1,300-1,400 crores). - Margin pressures expected in Q1 due to 15-20% raw material cost increases; price hikes (total 10% replacement price increase planned by June) to aid margin recovery. - EBITDA margin steady around ~13.4% in FY '26; expected normalization and improvement from Q2 FY '27 with better margins. - Profit after tax for FY '26 was INR812.7 crores (standalone) with EPS of INR201.17; growth influenced by international and replacement market expansions. - CAMSO integration is transitional; full operational control expected by end FY '27, with potential margin improvement over time. - Replacement segment outlook: 2-wheeler growth in single to high single digits; PCR modest growth of 3-5%; truck bus radial replacement to moderate to low single digit.

- Current quarter order visibility, including imports, is reasonable based on inventory and raw materials ordered. - Raw material cost increase expected at about 15% in Q1; actual replacement cost may be higher. - Price increases planned: around 5% taken between March-April; additional 5% staggered through May-June, totaling a 10% replacement price hike. - OEM price hikes lag, with a low single-digit increase on April 1 and a larger hike expected July 1, indexed to raw material costs. - International business price hikes totaling up to 10% progressively passing through over 30-45 days. - CAMSO business is in transition with anticipated full control of the value chain by end FY '27; sales interface expected under control by first half FY '27. - Quarter 1 faces challenges, but order base outlook for Q1 looks good after discounting Middle East uncertainties.