CEAT Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 4,548.00 Cr (+22.90% YoY) and PAT growth of -18.80% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 14, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 4,548.00 Cr (+22.90% YoY) |
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| PAT (Q2) | Rs. 164.00 Cr (-18.80% YoY) |
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| EBITDA margin | 10.14% (-356 bps YoY) |
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| EPS (Q2) | Rs. 40.62 (-18.80% YoY) |
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| Market cap | Rs. 13,591.62 Cr |
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| CMP | Rs. 3,357.90 |
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Quarter Snapshot
CEAT delivered its highest-ever quarterly revenue with standalone growth of 22.9% YoY and consolidated growth of 26.2%, while EBITDA margin improved 101 bps QoQ to 10.14% as price increases began flowing through. However, raw-material inflation (cost of materials +38.2% YoY) compressed gross margin by 740 bps YoY, driving standalone PAT down 18.8% and widening the CAMSO transition drag to −Rs.52 Cr. Results were in line with management's own stated targets on revenue growth and capex, with the CFO flagging cost pressures to persist into Q3.
Key Investment Insights
Key Positives
- Standalone revenue grew 22.9% YoY to Rs.4,548 Cr — highest-ever quarterly revenue; consolidated revenue grew 26.2% YoY to Rs.4,762 Cr
- EBITDA margin improved 101 bps QoQ to 10.14% from 9.13% in Q1 as price increases began to flow through
- Consolidated PAT recovered to Rs.112 Cr from Rs.4 Cr in Q1 FY27
- Cost discipline: employee costs +6.9% YoY and other expenses +5.1% YoY vs revenue +22.9%
- H1 consolidated capex of Rs.802 Cr is on track against FY27 guidance of Rs.1,300-1,400 Cr
- CAMSO subsidiary revenue rose to Rs.214 Cr from Rs.72 Cr a year ago in its first full-quarter comparable
- Working capital efficiency improved: debtor turnover 9.99x (vs 8.74x YoY) and inventory turnover 12.36x (vs 9.54x YoY)
- Consolidated finance costs normalised to Rs.87 Cr from Rs.146 Cr in Q1 as the Rs.48 Cr LKR-depreciation impact did not recur
Risk Factors
- Gross margin collapsed 740 bps YoY to 33.6% with cost of materials at 69.4% of revenue (vs 61.7% a year ago)
- Standalone PAT fell 18.8% YoY to Rs.164 Cr; consolidated PAT fell to Rs.112 Cr from Rs.186 Cr
- CAMSO transition losses widened: subsidiary PAT drag of −Rs.52 Cr vs −Rs.16 Cr a year ago; subsidiary EBITDA negative at −Rs.9 Cr
- Consolidated debt rose Rs.835 Cr in H1, taking D/E to 0.78x from 0.60x
- H1 standalone CFO fell 34% YoY to Rs.613 Cr and consolidated CFO fell 61% to Rs.338 Cr; FCF negative at −Rs.173 Cr standalone and −Rs.464 Cr consolidated
- CFO flagged cost pressures to persist into Q3