Tyre major CEAT Ltd delivered a strong performance in the March quarter of FY26, reporting a sharp surge in profitability alongside robust revenue growth, driven by momentum across segments and improved operating efficiencies.
Profit surges on strong operational momentum
The RPG Group company posted a 146% year-on-year jump in net profit at ₹244 crore in Q4 FY26, compared with ₹99 crore in the same period last year. The sharp rise in profitability was supported by scale benefits, better cost control, and improved operating performance.
Revenue growth remains robust
Consolidated revenue for the quarter stood at ₹4,219 crore, marking a healthy 23% YoY increase. The company reported an EBITDA margin of 14.18% during the quarter, reflecting improved operating leverage and disciplined cost management.
FY26 closes on a high note
For the full year, CEAT reported consolidated revenue of ₹15,678 crore, up 18.6% from ₹13,218 crore in FY25. Net profit for the year stood at a record ₹697 crore, as compared to ₹471 crore, underscoring strong execution across business cycles, while EBITDA margin came in at 13.16%.
Milestone year
Managing Director & CEO Arnab Banerjee said FY26 marked a milestone year for the company as it crossed ₹15,000 crore in revenue, backed by market share gains in both replacement and OEM segments. He highlighted that the company delivered strong growth across segments, including international markets, despite geopolitical challenges, and successfully completed the CAMSO acquisition during the year.
Chief Financial Officer Kumar Subbiah noted that operating margins improved in Q4, driven by efficiencies, scale, and disciplined cost management. He added that CEAT achieved its highest-ever annual profit while maintaining a strong balance sheet and healthy leverage ratios to support future growth.
Cost pressures and growth outlook
The company flagged near-term challenges from rising raw material costs and supply chain pressures but said it plans to mitigate these through calibrated pricing actions and tighter cost controls. CEAT also remains focused on capacity expansion aligned with its long-term growth strategy.
Dividend reward for shareholders
Reflecting its strong financial performance, the board has approved a dividend of ₹35 per equity share (350%) for FY26, subject to shareholder approval.