Ceat Ltd, one of India's leading tyre makers, heads into its Q2 FY27 print with demand running at record levels but margins under pressure from raw-material inflation and a sharply weaker rupee. The key things this results will speak to are whether the 4-6% July-August price hikes offset the guided 8-10% cost headwind, and how far the CAMSO transition drag on consolidated earnings persisted.
| Results date | October 14, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 4,318 Cr (consolidated, Q1 FY27, +22.3% YoY) |
| Previous quarter PAT | Rs. 4 Cr (consolidated, Q1 FY27) |
| Previous quarter EBITDA margin | 8.6% (consolidated, Q1 FY27) |
| Market cap | Rs. 13,050.01 Cr |
| CMP | Rs. 3,226.2 |
Ceat Ltd is scheduled to report its Q2 FY 2026-2027 results on October 14, 2026.
Ceat has scheduled its Q2 FY27 earnings call for October 15, 2026, at 4:00 pm IST, to be held virtually. The call will feature MD & CEO Arnab Banerjee and CFO Kumar Subbiah.
Shareholders approved a dividend of Rs. 35 per share at the AGM on August 17, 2026, with 99.9999% of votes in favour. The FY26 annual report had earlier stated the recommended dividend of Rs. 35 per share.
The Q2 FY27 print will test whether Ceat's pricing actions can keep pace with an input-cost surge — natural rubber held above Rs. 280/kg for most of the quarter, Brent traded between $90 and $107 through August-September, and the rupee depreciated past 96/USD, against management's guided 8-10% cost headwind versus Q1 FY27. Management had implemented replacement price increases of 7-8% through June and said it would endeavour to take a further 4-6% in July and August, while stating there was no question of rolling back prices "at this moment". On demand, the backdrop stayed strong — FADA's first-half FY27 auto retail tally of 1,55,12,319 units was a record first half, up 20.77% — even as management had flagged some moderation in Q2 FY27, saying demand would not "fall off the cliff". The consolidated numbers will also reflect the CAMSO transition, where customer migration was 50% complete by end-June with a 90% target by end-September, and the business remained EBITDA negative on low volumes and third-party sales handling. The upcoming call is expected to cover the margin bridge, CAMSO migration status, capex phasing against the FY27 guidance of Rs. 1,300-1,400 Cr, and the Rs. 48 Cr Sri Lankan rupee finance-cost impact.
Margin recovery and input-cost pass-through: Q1 FY27 consolidated EBITDA margin fell to 8.6% from 14.2% in Q4 FY26 on raw-material inflation and rupee depreciation.
CAMSO transition status: CAMSO was EBITDA negative in Q1 FY27 on low volumes and third-party sales handling, with consolidated PAT of Rs. 4 Cr versus standalone Rs. 98 Cr.
FY27 capex and two-wheeler expansion execution: Q1 FY27 capex outflow was about Rs. 293 Cr against full-year guidance.
Sri Lankan FX exposure and finance costs: Q1 FY27 consolidated finance costs included a Rs. 48 Cr impact from Sri Lankan rupee depreciation on the parent-company loan to CEAT OHT Lanka.
Demand, exports and capital structure: Management had guided to some demand moderation in Q2 FY27 while flagging monsoon, El Nino and West Asia risks.
Consolidated revenue rose 22.3% YoY to Rs. 4,318 Cr, but consolidated PAT was just Rs. 4 Cr as the EBITDA margin fell to 8.6% from 14.2% in Q4 FY26. Management attributed the pressure primarily to raw-material inflation and rupee depreciation, with price increases lagging the cost increase.
The CEO said the increases remained inadequate relative to input-cost inflation and that the company would endeavour to take another 4-6% in replacement during July and August, agreeing with an approximate 16% price-hike requirement estimate. He also said there was no question of a rollback "at this moment", while noting further increases would depend on competitor price actions and market response.
Management expects customer and value-chain control in the second half of FY27, with customer migration targeted to reach 90% by end-September from 50% at end-June. Margin recovery is projected by FY28 as Ceat gains control of the full value chain, with a target of above 20% CAMSO margin after full customer and material-supply control.
The Board approved Rs. 1,205 Cr for additional two-wheeler capacity of about 53,000 tyres/day, planned by end-FY2031 and to be funded through internal accruals and debt. The CFO confirmed that Nagpur capacity would be roughly 100,000 tyres/day before the additional capacity, with existing two-wheeler capacity at about 80,000 tyres/day running at about 95% utilisation.
The CFO explained that the Rs. 48 Cr impact related to Sri Lankan rupee depreciation against the dollar on a parent-company loan to CEAT OHT Lanka, and said that excluding this impact, finance cost would have been the normal amount incurred. The company has since converted USD 24.5 Mn of the USD 80 Mn inter-company loan into equity, with the subsidiary remaining wholly owned.