CEAT Limited — Q3 FY26
CEAT delivered a strong Q3 FY26 with standalone revenue of ₹3,957 crore (+20.1% YoY) and EBITDA margin of 14.08% (+364 bps YoY), driven by robust volume growth of 20.9% across s...
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
79%Questions answered0Evaded / deflected12Questions auditedContradictedNumbers vs filing
Partial answer
High priority
Impact of raw material increase due to natural rubber and INR depreciation
Asked by MUK Mandlesa, Anandraati Institutional Equities
Acknowledged potential impact but did not confirm the 100-150 bps figure or give specific timing.
no quantificationvague timing
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Question
you said going ahead there could be a 100 to 150 dips kind of impact on the raw material increase due to natural rubber prices going up and INR dep is it right sir?
Kumar (management)
we have visibility and cover in advance... going into the future Considering the rupee has depreciated and little bit of movement in the prices of natural rubber particularly international rubber it could come in due course of time.
Answered
Medium priority
Labor code impact on future quarters
Asked by MUK Mandlesa, Anandraati Institutional Equities
Provided a specific range for future quarterly impact (1-2 crore).
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Question
this 50 cr was mainly for the past period. So anything from the Q3 and going ahead how much one should factor the impact sir?
Kumar (management)
our estimate is for a quarter is coming to very small number... less than two about a maybe a core or two per quarter.
Answered
High priority
Camso Q3 financial performance revenue and margin
Asked by MUK Mandlesa, Anandraati Institutional Equities
Provided specific revenue and margin figures for Camso.
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Question
on the Camzo side can you share how was the Q3 financial performance for the Camzo in terms of revenue and sir?
Amit (head of specialty division)
the top line for the quarter is roughly at 20 million USD which is 182 183 crores and sir I think double digit EBITDA margin operating profit right sir
Partial answer
Medium priority
US market sales and tariff pass-through
Asked by MUK Mandlesa, Anandraati Institutional Equities
Addressed tariff pass-through but did not provide sales figures or quantify demand.
no sales numbers given
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Question
on the US market how's the sales going there sir and has the Michelin or basically they have taken the price to pass on this duty sir
Amit (head of specialty division)
necessary price increases have been taken in the market but as you're aware that Sri Lanka has a favorable tariff compared to India it's at 20% versus 50%.
Partial answer
High priority
Split of new 1350 crore capex and future capex plans
Asked by MUK Mandlesa, Anandraati Institutional Equities
Provided future capex range but did not split the 1350 crore by year.
no split by year given
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Question
this new 13 billion capex for the PCR sir how would be split of that capex in 27 and 28 and going for next year do you see any more capex planned other than for PCR?
Kumar (management)
our current annual capex is about 1,000 to 1,050 crores rate... it's likely that capex estimate from the next year onwards would move from 900 to 1,000 crores level to maybe 1,000 to 1,100, 1,200 crores level.
Answered
High priority
Sustainability of strong replacement segment growth
Asked by Rashi Bora, Kotak Securities
Provided clear outlook for replacement growth in FY27.
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Question
we have seen a very strong growth... is it something to do with channel filling or post GST cut... how should we think about this category growth going into FY27 overall replacement?
Arnab (management)
there was some channel filling... but the growth is much more than channel filling there's a genuine improvement in sentiment... we can expect high single digit growth in replacement through FY27.
Partial answer
High priority
Camso revenue decline and margin discrepancy
Asked by Rashi Bora, Kotak Securities
Explained transition impact but revenue run rate still below earlier guidance; margin discrepancy attributed to one-time costs not separately disclosed.
revenue figure revised downwardmargin explanation uses adjusted numbers
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Question
last quarter management had highlighted Camso annualized revenues roughly 140-150 million dollars... this quarter annualized run rate is around $80 million... why revenue collapsed? And margins: you said double digit but consolidated minus standalone shows 3%.
Amit and Kumar (management)
we have been saying it is 120-125 million actually... in the transition phase we are selling to Michelin... the markdown realization is around 90-100... as far as margins... we have recorded double digit and it includes one-time transition cost... most of those costs have been already incurred.
Answered
High priority
Timing of Camso business transfer from Michelin
Asked by Rashi Bora, Kotak Securities
Provided specific timeline for customer transfer and revenue normalization.
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Question
when would this complete transfer from Michelin take place? So like today you said that there is a markdown which happens. So when should we expect that business transfer to happen?
Amit (head of specialty division)
customer transfer has started... it will accelerate in quarter four and maybe by quarter 1, quarter two we should be done with it. So then realization should normalize by second quarter next year.
Answered
High priority
Clarification on PCR capex: whether new 1350 cr includes previous 450 cr
Asked by Mir Va, Aquir Securities
Clearly stated the two capex are separate.
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Question
in July we had announced a capex of around 450 cr on passenger car tires capacity in Chennai... now we have announced another 1350 cr. So is this including the 450 or that is a separate one?
Kumar (management)
this is independent of that. what we announced in July was taking our capacity to about 30,000 tires per day. This 30,000 tires to 40,000 tires is over and above that.
Partial answer
Medium priority
Higher capex cost per ton for PCR expansion
Asked by Mir Va, Aquir Securities
Explained higher weight but did not provide a direct cost per ton comparison.
no specific cost per ton provided
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Question
when we do back of the envelope calculation the capex cost per TPD comes out to be higher this time. So what is changed in the capex here?
Kumar (management)
this translates to about 140 tons a day... average weight of tires is progressively going up... if you look at total capex divided by tonnage it'll be broadly in line with what we have incurred so far.
Answered
High priority
Camso margin trajectory: low teens to 20%
Asked by Sai Pande, Noama
Provided specific margin progression from low teens to mid-teens to 20%.
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Question
when you say double digit margin for Camso is it like 10-12% or high teens or more than 15%? Because Camso in general will be at around 20% EBITDA margin right.
Amit (head of specialty division)
in quarter three it was just about low teens... gradually it will trend towards mid-teens and we did talk about 20% and above that will come when we take complete control of customers and material supply.
Answered
Medium priority
Quantification of one-time expenses in Camso
Asked by Agnesh Ayar, Sequent Investments
Provided percentage of revenue for one-time expenses.
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Question
I heard you say that there is a one-time expense in Camso this quarter not expected to repeat in Q4. Can you quantify the amount?
Kumar (management)
overall for the quarter it would have been about four to 5% of the revenue was the kind of expenses that we incurred on quarter 3 that we wouldn't incur in quarter 4 onwards.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Camso Q3 revenue 20 million USD (182-183 crore) | ₹183 cr | ₹4,157 cr | Understated vs filing |
| Camso EBITDA margin double digit | 10% | 14% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.