Ceat (500878) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated revenue reached a record INR 4,762 crore, up 26.2% YoY; growth reflected strong volumes, pricing and mix.

• Consolidated EBITDA was INR 452 crore with a 9.5% margin, down 403 bps YoY; consolidated PAT was INR 112 crore, down 39.6% YoY.

• Strong demand and premium-segment growth supported sales, while raw-material inflation pressured margins; further pricing and Camso integration remain priorities.

Financial highlights

• Consolidated Q2 revenue was INR 4,762 crore, up 26.2% YoY; ~40% of growth came from volume, with the balance from price and mix.

• Consolidated EBITDA was INR 452 crore, down 11.4% YoY; standalone revenue was INR 4,548 crore, up 22.9%, and standalone EBITDA was INR 461 crore.

• Consolidated PAT was INR 112 crore versus INR 186 crore YoY; standalone PAT was INR 164 crore, down 19.0% YoY.

• Consolidated gross margin was 34.6%, down 635 bps YoY and up 66 bps QoQ; gross profit rose 6.6% to INR 1,646 crore.

• Consolidated 6M FY27 revenue was INR 9,080 crore, up 24.3%; EBITDA was INR 822 crore, down 8.4%, and PAT was INR 116 crore, down 61.0%.

Outlook and guidance

• Q3 raw-material costs are expected to rise 3%-3.5% QoQ; cumulative costs by December are expected to be 27% above March exit prices.

• Further frequent, low-dose price increases are planned through Q3 across replacement and international markets; Q4 pricing plans remain undecided.

• H2 target is double-digit revenue growth; replacement outlook is double-digit for two-wheelers, mid-single-digit for CVs, low-single-digit for passenger vehicles and low growth for farm.

• Q3 demand may moderate on a high base, El Niño and higher interest rates; MHCV growth is expected in the mid-single digits.

• FY CapEx guidance is INR 1,400 crore for standalone operations, plus INR 100-150 crore for Camso upstream equipment.