CEAT Share Price Jumps Over 10% After Q4 FY26 Results: Profit Jumps 145%, Revenue Up 23%

The stock touched a 52-week high of ₹4,438 on October 23, 2025, and a 52-week low of ₹2,984.50 on April 28, 2025. The company’s market capitalisation stood at ₹14,278.88 crore as of April 28, 2026.

CEAT Limited has performed well in its Q4 FY26 results with 145.1% jump in YoY consolidated net profit to ₹243.85 crore from ₹99.49 crore during Q4 FY25. The strong performance has been driven by high demand across segments and increased operational efficiency.

During the quarter, revenue from operations increased by 23% to ₹4,219 crore from ₹3,421 crore during the quarter last year. During the quarter, the company has posted EBITDA margin of 14.18%.

Full-Year FY26 Performance

For the entire financial year ending March 31, 2026, CEAT produced its best-ever results. The total revenue of the company reached ₹15,678 crore, registering a growth of 18.6% year-on-year, whereas the net profit figure was ₹697 crore. The company's EBITDA margin in the financial year was 13.16%.

The company achieved the ₹15,000-crore mark in terms of revenues for the FY26 year owing to its growth in market share in both replacement as well as OEM business segments.

Dividend Announcement

The directors have proposed an annual dividend of ₹35 for every equity share, equivalent to a dividend yield of 350% of the ₹10 face value per equity share. This proposal will come into effect only if approved by the shareholders at the next AGM.

Management Commentary and Outlook

Commenting on the results as well as the outlook of the business, Mr. Arnab Banerjee, MD & CEO, CEAT Limited, said, “FY26 has been a strong year where we delivered robust growth in top line as well as in bottom line. We crossed an important milestone of Rs 15000 crores of revenue, accompanied by market share gains in replacement and OEMS. We successfully closed the CAMSO deal during the year. 

In Q4, we delivered high growth in all segments including international business, despite geopolitical tensions. Looking ahead, while there is a momentum on top line, we have short-term challenges on supply chain and costs due to steep increase raw material cost that we intent to mitigate through pricing and strong cost management. We intend to continue expanding our capacities in line with our growth plans.” 

Mr. Kumar Subbiah, CFO of CEAT Limited, said, “In Q4, we improved operating margins by over 51 bps, driven by a sharper focus on operating efficiencies, scale and disciplined cost management. For the year, we delivered our highest-ever profit of ₹ 697 crore. 

Our balance sheet continues to be strong and leverage ratios remain healthy to provide growth capital to the business. While gross debt has increased, we remain committed to maintaining a cautious leverage profile with adequate liquidity. 

Looking ahead, we will stay focused on strengthening cash flows and disciplined capital allocation. In line with our commitment to deliver sustained value to our shareholders, supported by strong financial performance, the Board has recommended a dividend of 350% per equity share for the year, which is subject to shareholders' approval.” 

Capacity Expansion and Capex Plans

CEAT has laid out aggressive growth plans to achieve growth in the future. CEAT will be spending in excess of ₹4,500 crore to upgrade the production capacity at their Chennai plant from 24,000 tyres per day to 40,000 per day up until September 2027. This upgrade would take place in two stages, first reaching a capacity of 30,000 tyres per day, and would include both EV and internal combustion engine tyres.

Currently, only 5% of revenue comes from EVs due to less penetration into the replacement market. Over time, it is expected that this number will change.

Furthermore, CEAT will expand the two-wheeler tyre capacity in its Nagpur plant from 80,000 to 1 lakh per day. For truck and bus radial tyres, it will go from 1,500 to 2,000 per day until Q2 FY27 and then from 2,000 to 3,000 per day up until Q1 FY28. Capex for this year will amount to over ₹1,070 crore.

International Business and Market Exposure

CEAT’s international business has performed well, recording 20% growth in the last two quarters. However, its export business in West Asia has been affected from March onwards because of the geopolitical situation, and it is expected to stay weak until things settle down.

Its business contribution from West Asia is 20-25%, Europe is 30%, US is 3-4%, and Southeast and South Asia is 16-18%. In order to offset any disruption, CEAT is rerouting shipments to other destinations.

Conclusion

CEAT's Q4 FY26 performance is a result of high earnings momentum due to revenue and margin growth, alongside strict cost control measures. However, despite ongoing issues like increased costs of raw materials and geopolitical turmoil, the business is well-positioned for future growth because of its growth plans, healthy financials, and wide international reach.