CEAT Ltd Results: How did the company perform in Q3?

Synopsis: The tyre stock moved sharply after Q3FY26 results, supported by margin expansion to 13.7%, lower leverage, and multiple growth triggers. Key updates include a 35-lakh tyre capacity expansion, ₹1,314 crore capex by FY28, and a ₹361 lakh investment to strengthen digital auto services.

The shares of the prominent tyre manufacturer gained up to 3 percent in today’s trading session after the company announced its Q3FY26 earnings and also planned to expand its Chennai tyre plant.

With a market capitalisation of Rs 15,493.80 crore, the shares of Ceat Ltd were trading at Rs 3,830.35 per share, decreasing around 1.32 percent as compard to the previous closing price of Rs 3,881.55 apiece.

Q3FY26 highlights

The shares of CEAT Ltd have seen significant movement after announcing its financial performance in Q3FY26, in which revenue increased by 26 percent on a year-on-year basis from Rs 3,300 crore in Q3FY25 to Rs 4,157 crore in Q3FY26. However, on a Quarter-on-Quarter basis, revenue zoomed by 10 percent from Rs 3,773 crore in Q2FY26 to Rs 4,157 crore in Q3FY26.

Moreover, net profit increased by 60 percent on a yearly basis from Rs 97 crore in Q3FY25 to Rs 155 crore in Q3FY26, meanwhile, on a quarter-on-quarter basis, net profit decreased by by 17 percent from Rs 186 crore in Q2FY26 to Rs 155 crore in Q3FY26.

The company reported an improved Q3 FY26 performance with EBITDA margin rising to 13.7%, up 13 bps QoQ and 317 bps YoY, despite higher raw material costs. Debt stood at ₹2,931 crore with leverage ratios improving sequentially. Capex outflow was ₹254 crore, while working capital increased marginally during the quarter.

Moreover, the company plans to expand its Chennai tyre plant by adding 35 lakh tyres per year, taking advantage of strong demand in the PCUV segment. With current utilisation near 80%, the  Rs 1,314 crore capex, funded through internal accruals and debt, is targeted for completion by H1 FY2028.

Additionally, CEAT Limited has approved an investment of up to ₹361 lakh in its wholly owned subsidiary, Tyresnmore Online Private Limited, through a rights issue. The move maintains 100% ownership and supportsthe expansion of its auto-ancillary services platform, which reported a turnover of ₹3,225.73 lakh in FY25, with allotment expected by February 2026.

CEAT is one of India’s leading tyre manufacturers with a strong presence across passenger vehicles, two-wheelers, trucks, buses, and off-highway segments. Part of the RPG Group, the company focuses on innovation, safety, and expanding its product portfolio to serve both domestic and global automotive markets.

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