Strong Q2 FY26 Performance
CEAT Limited reports robust Q2 FY26 results with 53% YoY profit growth and 14% revenue increase, achieving significant margin expansion and completing strategic Camso acquisition.
Q2 FY26 Results Snapshot
Results Date: October 17, 2025 | Quarter: Q2 FY26 (July-September 2025)
Half-Yearly Performance: CEAT achieved ₹7,302 crore revenue in H1 FY26, marking 12.4% growth YoY with improved operational efficiency.
Strategic Milestone: Camso Acquisition Completed
CEAT successfully completed the acquisition of Camso's Off-Highway construction equipment tyre and tracks business for $225 million, marking a significant step in global premiumisation strategy.
Official Q2 FY26 Results Document
Download the complete CEAT Q2 FY26 results presentation for detailed financial analysis and management commentary.
Download Q2 FY26 Results PDFBusiness Segments & Market Mix
Product Mix (H1 FY26):
Technical Parameters - CEAT Limited
| Parameter | Value | Parameter | Value |
|---|---|---|---|
| Market Cap | ₹15,098 Cr | Current Price | ₹3,732 |
| 52 Week High/Low | ₹4,049 / ₹2,322 | Stock P/E | 28.8 |
| Industry P/E | 30.1 | Book Value | ₹1,080 |
| Dividend Yield | 0.80% | ROCE | 15.4% |
| ROE | 11.8% | Face Value | ₹10.0 |
| EPS | ₹122 | Debt to Equity | 0.49 |
| Total Debt | ₹2,136 Cr | PEG Ratio | 0.36 |
| Free Cash Flow | ₹149 Cr | OPM (Q2 FY26) | 13.5% |
Peer Comparison - Tyre Sector
| Company | Current Price | P/E Ratio | Market Cap | ROCE % | Debt/Equity | Dividend Yield |
|---|---|---|---|---|---|---|
| CEAT Limited | ₹3,732 | 28.8 | ₹15,098 Cr | 15.4% | 0.49 | 0.80% |
| MRF Limited | ₹1,42,850 | 18.5 | ₹60,245 Cr | 18.2% | 0.05 | 0.28% |
| Apollo Tyres | ₹485 | 16.3 | ₹29,150 Cr | 12.8% | 0.32 | 1.45% |
| Balkrishna Industries | ₹2,845 | 25.7 | ₹54,890 Cr | 19.3% | 0.18 | 0.70% |
CEAT Limited - Leading Tyre Manufacturer
CEAT, established in 1958, is one of India's leading tyre manufacturers and flagship company of RPG Enterprises. The company produces over 48 million high-performance tyres annually, catering to various segments including 2-3 Wheelers, Passenger and Utility Vehicles, Commercial Vehicles and Off-Highway Vehicles.
Business Segments & Operations
Product Portfolio: CEAT offers a comprehensive range of tyres across all vehicle segments with strong presence in both domestic and international markets. The company has 61,000+ touchpoints and relationships with 50+ OEMs.
Manufacturing Excellence: CEAT is the first Deming Grand recipient in the tyre industry and has 2 Light House certified factories by World Economic Forum, demonstrating strong manufacturing capabilities and quality standards.
Global Footprint: With the recent Camso acquisition, CEAT has strengthened its position in the global off-highway tyre market, particularly in construction equipment segments.
Key Strengths & Advantages
- Strong Brand Equity: Established brand with 65+ years of heritage in the tyre industry
- Diverse Product Portfolio: Comprehensive range across all vehicle segments
- Extensive Distribution: 61,000+ touchpoints providing wide market reach
- OEM Relationships: Strong partnerships with 50+ automotive manufacturers
- Manufacturing Excellence: Deming Award and Light House certifications
- RPG Group Backing: Part of the reputed RPG Enterprises conglomerate
- Global Expansion: Strategic Camso acquisition enhancing international presence
Technical Analysis & Metrics
CEAT Limited (CEATLTD)
India's Leading Tyre Manufacturer
Q2 FY26 Performance Highlights:
- Revenue: ₹3,773 Cr (+14.2% YoY)
- PAT: ₹186 Cr (+53% YoY)
- EBITDA: ₹511 Cr (+39% YoY)
- EBITDA Margin: 13.5% (+240 bps YoY)
- EPS: ₹45.98 (Consolidated)
Price Performance
ESG & Sustainability Initiatives
Achievements & Recognition:
- Committed to science-based Net-Zero targets with SBTi
- Launched SecuraDrive CIRCL - India's first passenger car tyre with up to 90% sustainable materials
- Sustainability Certificate in Progressive Category by CII
- "Great Indian ESG Organization of the year (Manufacturing)" award
- Recognized as Value Chain Partner by ŠKODA AUTO Volkswagen India
Investment Considerations
Positive Factors:
- Strong Q2 Performance: 53% profit growth and margin expansion
- Strategic Acquisition: Camso integration enhances global footprint
- GST Benefit: Reduced GST rates expected to boost demand
- Market Leadership: Strong position in replacement and OEM segments
- ESG Focus: Strong sustainability initiatives and recognition
Risks & Challenges:
- Increased Debt: Debt rose due to Camso acquisition and dividend payout
- Competitive Intensity: Highly competitive tyre industry
- Raw Material Volatility: Exposure to rubber and crude oil price fluctuations
- Economic Sensitivity: Performance linked to automotive industry cycles
- Integration Risk: Successful integration of Camso business crucial
Disclaimer
This is not a recommendation to buy or sell. The information presented in this blog post is for educational and informational purposes only. It should not be construed as investment advice or a recommendation to buy, sell, or hold any security. The stock market is subject to risks, and past performance is not indicative of future results. Readers are strongly advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions.
Source: CEAT Limited Q2 FY26 Results dated October 17, 2025
Management Commentary
Arnab Banerjee - MD & CEO:
"We have maintained strong double-digit growth this quarter, with revenue rising by approximately 12%. One of the key developments in this quarter has been reduction in GST rates on tyres and vehicles, which we hope will have positive impact on demand across domestic categories. We have also been excited with Camso fully integrating into the CEAT family effective Sept, marking a significant milestone in our global premiumisation strategy. Looking ahead, with a positive growth momentum, we look forward to double-digit growth in the second half of the year."
Kumar Subbiah - CFO:
"Overall, Q2 has been a strong quarter for us, marked by topline growth and expansion of margins. Our debt has increased largely due to acquisition of Camso's assets and the payout of dividends. Our balance sheet continues to be healthy even after the increase in debt level and well-positioned to provide necessary capital to support future growth."
Key Management Insights: