Ceat (500878) investor relations material

Executive summary

• Consolidated revenue for Q3 FY26 reached INR 4,157 crore, up 26% YoY, with strong volume growth across all segments and EBITDA margin at 13.7%.

• Standalone revenue grew 20.1% YoY to INR 3,957 crore, with EBITDA margin at 14.08% and net profit at INR 191.6 crore, despite a one-time labor code provision.

• Net profit (PAT) for Q3 FY26 stood at INR 155.4 crore, up 60% YoY, with consolidated PAT at INR 155.4 crore and standalone PAT at INR 191.6 crore.

• Camso integration is progressing, with Q3 revenue at $20 million (INR 182-183 crore); transition costs impacted Q3 but are expected to normalize from Q4.

• Board approved INR 1,314 crore CapEx for Chennai plant to add 3.5 million passenger car tire capacity by H2 FY2028.

Financial highlights

• Consolidated EBITDA at INR 568 crore (13.7% margin), up 317 bps YoY; standalone EBITDA at INR 556 crore (14.08% margin), up 364 bps YoY.

• Gross margin for Q3 FY26 was 39.9%, down 109 bps QoQ but up 310 bps YoY.

• Standalone working capital remained marginally negative; inventory dropped by INR 212 crore, while net working capital increased by INR 38 crore QoQ.

• Standalone gross debt at INR 2,954 crore; debt-to-EBITDA improved to 1.25x, debt-to-equity to 0.63.

• Finance cost increased 20.7% QoQ and 39.8% YoY to INR 105 crore.

Outlook and guidance

• Consistent margin profile expected with benign commodity prices, though a 1-1.5% margin headwind is anticipated in Q4 due to currency and raw material costs.

• Replacement segment expected to sustain high single-digit growth through FY2027.

• Camso margins to normalize to double digits from Q4, trending toward mid-teens and potentially 20% as integration completes.

• International business continues to recover with strong demand from key clusters.

• Growth in the PCUV category is expected, with capacity expansion planned to meet future demand.