Claim Ledger
75% answered
Did management answer the analysts?
12 analyst questions audited.
View Claim Ledger →
CEAT Limited — Q4 FY26
CEAT delivered a strong Q4 FY26 with standalone revenue growing 18.2% YoY to ₹4,219 crore, driven by broad-based demand across replacement, OEM, and international segments.
neutral
medium
✓ Verified against BSE filing
2-Minute Summary
✦ AI-Generated from Full Transcript
CEAT delivered a strong Q4 FY26 with standalone revenue growing 18.2% YoY to ₹4,219 crore, driven by broad-based demand across replacement, OEM, and international segments. EBITDA margin expanded 299 bps YoY to 14.6%, aided by operating leverage and cost control. PAT surged to ₹283.6 crore (vs ₹100.4 crore last year). However, the outlook is clouded by a sharp 15%+ raw material cost inflation in Q1 FY27, with crude above $100/bbl and natural rubber up 30% QoQ. Management plans 10% price hikes in replacement and index-based OEM increases, but pass-through will lag. The Camso acquisition remains in transition, with full value chain control expected by FY28. Demand moderation is anticipated in H1 due to price hikes, but structural drivers (GST cuts, aging fleet) provide a floor. Key risk: if competitive dynamics delay price hikes, margins could compress significantly.
Promises0 met · 2 missedRisks4 trackedTranscriptfull text
Research workspace
Focused Modules
Promises
2 promises
Promise Tracker
0 delivered, 0 close, 2 missed.
View Promises →
Risks
4 risks
Risk Intelligence
Raw material cost inflation may compress margins
View Risks →
Transcript
Full text
Call Transcript
Full transcript text is available on this route.
Read Transcript →Quarter Snapshot
Volume Growth (YoY)
20%
+20% YoY
Overall standalone volume growth in Q4 FY26.
International Business Share
20.4%
+1.4pp YoY
Share of standalone revenue from international markets in Q4 FY26.
Capacity Utilization
85-90%
flat
Utilization across categories remains high, limiting near-term volume upside without capex.
EV Market Share (Passenger)
29%
flat
CEAT's share in passenger EV OEM fitments, a strategic focus area.
What Changed vs Last Quarter
NEW
Price hikes of ~10% in replacement by June 2026
Management plans to implement ~5% price increase already taken in March-April, with another ~5% staggered through May-June to offset raw material inflation.
NEW
OEM price index hike on July 1, 2026
A heavier index-based price increase is expected in OEM segment on July 1, following a smaller hike on April 1.
NEW
Capex of ₹1,350-1,400 crore for India in FY27
Planned capex for Indian operations, with Q1 spending kept frugal and scaling up if conditions normalize.
NEW
Camso upstream equipment operational by March 2027
Mixers and calendars to be installed by end of FY27, completing the value chain and enabling margin improvement from FY28.
DROPPED
Replacement growth high single-digit for FY27
Management expects replacement demand to sustain high single-digit growth through FY27, driven by GST rationalization.
DROPPED
Capex guidance of ₹1,000-1,200 crore per annum
Annual capex is expected to move from ₹900-1,000 crore to ₹1,000-1,200 crore from next year, including PCR capacity expansion at Chennai.
DROPPED
CAMSO margin to trend to low double-digit from Q4
Reported CAMSO margins should reach double-digit from Q4 onwards as one-time transition costs are eliminated.
DROPPED
Raw material cost headwind of 1-1.5% in Q4
Management expects a 1-1.5% sequential increase in raw material basket cost in Q4 due to currency and natural rubber.
NEW RISK
Raw material cost inflation may compress margins
Crude oil surged past $100/bbl and natural rubber prices rose ~30% in Q4, with full impact hitting Q1 FY27. Management expects 15%+ RM cost increase, and only partial pass-through via price hikes.
NEW RISK
Competitive pricing pressure could delay price hikes
Analyst raised concern that competitors like MRF may not fully pass on costs. Management acknowledged market is competitive and price increases are delayed by some players, which could force CEAT to absorb costs.
NEW RISK
Middle East geopolitical disruption impacting exports
Sales to Middle East were severely impacted in Q4 (practically zero). While management expects to compensate via other regions, any escalation could hurt international revenue.
RISK GONE
Currency depreciation and raw material inflation
Rupee depreciation from ₹87 to ₹91/USD and rising natural rubber prices could impact margins by 1-1.5% in Q4 and beyond.
RISK GONE
US tariff headwinds on exports
US tariffs of 25% on on-road tires and 50% on OHT persist, limiting growth in the US market; India-US trade deal uncertainty remains.
RISK GONE
Replacement demand sustainability post-GST
Strong replacement growth may partly reflect channel restocking; sustainability beyond a couple of quarters is uncertain.
Fast read
Guidance and risk preview
Management plans to implement ~5% price increase already taken in March-April, with another ~5% staggered through May-June to offset raw material i...
Crude oil surged past $100/bbl and natural rubber prices rose ~30% in Q4, with full impact hitting Q1 FY27.
View Risks →