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CEAT Q2 Profit Drops 39 Percent on High Costs, Plans Price Hikes for Growth
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CNBC TV18•14-10-2026, 19:15
CEAT Q2 Profit Drops 39 Percent on High Costs, Plans Price Hikes for Growth
- •CEAT reported a 39.8% year-on-year decline in consolidated net profit to ₹112 crore for the second quarter due to elevated raw material costs.
- •Revenue from operations grew 26.2% year-on-year to ₹4,762 crore, driven by strong performance in premium segments.
- •EBITDA fell 9.1% to ₹457 crore, with margins contracting to 9.6% compared to 13.3% in the previous year.
- •MD and CEO Arnab Banerjee announced plans for further price increases and sustained double-digit growth in the second half of the financial year.
- •CFO Kumar Subbiah highlighted that higher capital expenditure of nearly ₹490 crore and dividend payouts contributed to increased debt during the quarter.
Key Questions Answered
CEAT reported a 39.8% year-on-year decline in consolidated net profit to ₹112 crore for the second quarter, primarily because elevated raw material costs driven by geopolitical tensions weighed heavily on profitability despite strong revenue growth.
Looking ahead to the second half of the financial year, CEAT aims to deliver double-digit growth by implementing further price hikes, exercising tighter cost controls, and improving its product mix to counter elevated commodity pressures.
CEAT's debt increased during the quarter largely due to higher capital expenditure of close to ₹490 crore to expand manufacturing capacity where utilization was high, alongside regular dividend payouts.
