CEAT Q2 FY27 results: net profit down 39.7% to ₹112 crore, revenue up 26.2%

How did CEAT perform in Q2 FY27?

CEAT reported consolidated revenue of ₹4,762 crore in Q2 FY27, up 26.2% from ₹3,773 crore in Q2 FY26 and 10.3% from ₹4,318 crore in Q1 FY27. Total income rose 26.2% year on year to ₹4,767 crore. EBITDA fell 9.2% year on year to ₹457 crore, while margin declined 3.7 percentage points to 9.6%. Against Q1 FY27, EBITDA rose 25.2% and margin improved 1.1 percentage points.

Consolidated PBT was ₹169 crore in Q2 FY27, down 31.4% from ₹246.43 crore a year earlier but up ₹137 crore from ₹32 crore in Q1 FY27. PAT fell 39.7% year on year to ₹112 crore and rose from ₹4 crore in the previous quarter. Profit attributable to owners was ₹26 crore, against ₹185.95 crore in Q2 FY26, while basic EPS was ₹27.79, down 39.6% year on year and up from ₹1.07. On the standalone basis, revenue was ₹4,548 crore and PAT was ₹164 crore.

What changed in CEAT's costs and profit?

Total expenses rose 29.9% year on year to ₹4,585 crore, outpacing the 26.2% increase in revenue. Cost of materials increased 39.5% by ₹915.43 crore to ₹3,234 crore, employee cost rose 22.6% by ₹59.26 crore to ₹321 crore, depreciation increased 11.0% by ₹19.15 crore to ₹193 crore, and other expenses rose 11.6% by ₹90.08 crore to ₹869 crore. Finance costs were ₹87 crore, up ₹0.04 crore from ₹86.96 crore.

The investor presentation said the raw-material basket cost increased by high single digits sequentially, while year-on-year EBITDA margin contraction was primarily driven by raw-material cost pressure. Other income rose 29.5% to ₹5 crore from ₹3.86 crore, and tax fell 23.5% to ₹52 crore from ₹67.95 crore. Q2 FY27 included a ₹13 crore exceptional charge, against no exceptional item in Q2 FY26; PAT margin was 2.4%, down 2.5 percentage points.

How did the first half of FY27 go?

In H1 FY27, consolidated revenue rose 24.3% to ₹9,080 crore from ₹7,302.06 crore in H1 FY26, while total income increased 24.4% to ₹9,091 crore from ₹7,310.65 crore. PBT fell 50.0% to ₹201 crore from ₹402.18 crore, and PAT fell 61.1% to ₹116 crore from ₹298.01 crore. Basic EPS declined 60.9% to ₹28.85 from ₹73.77.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹15,061 crore, compared with ₹13,902.24 crore on 31 March 2026, and total equity was ₹4,969 crore against ₹5,054.03 crore. Borrowings increased to ₹3,846 crore from ₹3,010.79 crore, while cash declined to ₹32 crore from ₹39.53 crore. Inventories rose to ₹2,597 crore from ₹1,783.37 crore, trade receivables to ₹1,964 crore from ₹1,838.9 crore, and trade payables to ₹3,887 crore from ₹3,447.82 crore.

H1 FY27 operating cash flow was ₹305 crore, compared with ₹873.77 crore in H1 FY26. Investing cash flow was negative ₹781 crore against negative ₹1,512.78 crore, while financing cash flow was ₹468 crore against ₹666.82 crore. Capital expenditure was ₹0 in the cash-flow figures, compared with ₹1,539.19 crore in H1 FY26.

How has CEAT done over the last 8 quarters?

Revenue has risen year on year in each of the last eight quarters. Across the supplied quarterly series, revenue peaked at ₹4,762 crore in Q2 FY27, up from ₹4,318 crore in Q1 FY27. PAT bottomed at ₹4 crore in Q1 FY27 and recovered to ₹112 crore in Q2 FY27, while the EBITDA margin rose from 8.5% to 9.6%.

The latest quarter remained below the recent peak in profitability: Q4 FY26 had PAT of ₹243.8 crore and an EBITDA margin of 14.0%. The margin had also reached 13.3% in Q2 FY26 before falling to 9.6% in Q2 FY27. The current direction shows higher revenue and profit than Q1 FY27, with margin recovering from 8.5% to 9.6%.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the period ended 30 September 2026 on 14 October 2026. It also appointed Sumeet Narang as an Additional Director in the capacity of Non-Executive, Independent Director for a consecutive period of 5 years from 14 October 2026, subject to shareholder approval, following a recommendation from the Nomination and Remuneration Committee. The same-day filings did not announce a dividend or fund raise.

What did CEAT's management say?

Management said the quarter recorded healthy year-on-year volume and realisation growth across segments, with marginal sequential volume growth led by OEM and International Business. It also said realisation growth was led by price hikes taken across segments, and that the raw-material basket cost increased by high single digits sequentially. The presentation said gross margin expanded by 66 basis points sequentially and contracted by 635 basis points year on year, while other operating costs were managed well. No earnings-call guidance, analyst questions or management risk comments were included in the available records.

How did CEAT shares react?

After the filing, CEAT’s shares fell 1.9% within 5 minutes, were up 0.1% after 15 minutes and fell 1.0% after 30 minutes. On the reaction day, the stock closed 4.6% below its previous close. By the next day’s close, it was down 2.1% from the pre-results close, and by the fifth session it was down 8.5%.

The industry median moved 0.1% on the reaction day, up 0.1% by the next day’s close and down 4.3% by the fifth session. CEAT’s move was therefore 4.5 percentage points below the industry median on the reaction day, 2.2 percentage points below it by the next day’s close and 4.1 percentage points below it by the fifth session. Earlier reaction-day moves included 7.4% on 16 July 2026, 2.8% on 28 April 2026 and 5.2% on 19 January 2026.