CEAT Ltd shares surged 9% on the NSE, marking their sharpest single-day rally in over four months and hitting a four-month high. The Board approved a ₹30 per share dividend, subject to shareholder approval. CEAT also announced ₹946 crore in capex for capacity expansion.
Indian equity benchmark indices were seen trading in a capped range during the afternoon session.
Despite the constrained movement in the broader market, one stock that clearly stood out was CEAT Ltd. As of 12:49 PM on the NSE, CEAT’s share price surged by 9%, marking its highest single-day gain in over four months. With this strong up-move, the stock touched a four-month high.
The surge follows the company’s robust operational performance for the quarter ended March 2025 (Q4FY25). CEAT reported consolidated revenue of ₹3,420.6 crore, up 3.7% quarter-on-quarter (QoQ) and 14.3% year-on-year (YoY). EBITDA margin improved by 101 basis points QoQ to 11.5%. A largely stable raw material (RM) basket compared to Q3FY25 led to a gross margin expansion of 64 basis points to 37.5%.
Management attributed the margin improvement of over 120 basis points in Q4 to a favourable revenue mix and stringent cost controls across the value chain. The company incurred a capital expenditure of ₹946 crore during the year, primarily for capacity expansion to support its growth plans for FY26. Additionally, ₹37 crore was spent during the quarter on a voluntary separation scheme for employees at one of its high-cost plants, as part of its ongoing efforts to enhance manufacturing efficiency.
The Board of Directors, in its meeting held today, has approved a dividend of ₹30 per equity share (300%) for FY24-25, subject to shareholder approval.
Established in 1958, CEAT is the flagship company of RPG Enterprises and ranks among India’s leading tyre manufacturers. The company has a strong global presence and produces over 41 million high-performance tyres annually, catering to two- and three-wheelers, passenger and utility vehicles, commercial vehicles, and off-highway vehicles.
Disclaimer: The article is for informational purposes only and not investment advice.
For android only