CEAT Q3 Results: Profit jumps 60% YoY, plans ₹1,314 crore capacity expansion

CEAT Limited

delivered a robust Q3 performance, driven by strong volume growth across segments and improving market sentiment. The company’s consolidated net profit rose 60.3% to ₹155.7 crore, compared with ₹97.1 crore a year earlier.

Revenue climbed 26% to ₹4,157 crore, while EBITDA surged 65.2% to ₹563.3 crore, translating into an improved margin of 13.5% from 10.3% in Q3FY25.

Arnab Banerjee, MD & CEO, said the quarter was supported by strong revenue growth across all segments, aided by GST rate reductions that boosted domestic demand. He also pointed to emerging opportunities in international markets and expressed confidence that the positive momentum would continue into the next quarter, helping the company close the year on a strong note.

On a standalone basis, CEAT reported revenue of ₹3,957 crore, up 20% YoY, with EBITDA margin at 14.08% and net profit at ₹192 crore.

CFO Kumar Subbiah said strong top-line growth drove operating leverage and margin improvement, supported by stable commodity prices. He added that the company recognised a ₹58 crore provision in Q3 for the impact of new labour codes, and maintained capex to support growth, largely funded through internal accruals.

In a separate announcement, CEAT proposed a ₹1,314 crore capacity expansion at its Chennai plant in Sriperumbudur, aiming to add 35 lakh tyres per annum by the first half of FY28.

The company currently has an installed capacity of about 95 lakh tyres per annum, with utilisation around 80% (excluding ongoing expansions). The investment will be funded through a mix of internal accruals and debt, reflecting CEAT’s expectation of strong demand growth in the PCUV category.

Ahead of the results, CEAT shares closed at ₹3,895 on the NSE, up 2.68%.