Ceat (500878) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue grew 11.6% YoY to Rs. 3,299.9 Cr, with strong volume growth in international and replacement segments; standalone profit at INR 96 crores and consolidated PAT at INR 97 crores.

• EBITDA margin declined to 10.5%, down 387 bps YoY, due to higher raw material costs; PAT dropped 46.5% YoY to Rs. 97.0 Cr.

• Major capex plan approved to expand Nagpur plant capacity by 30% by FY2027-28, with an investment of ₹400 crores.

• Camso acquisition agreement signed for $225 million, expected to close in Q1 FY26, boosting international business saliency to 26%.

• Incorporation of a subsidiary in Indonesia is underway, shifting to majority-owned due to local regulations.

Financial highlights

• Consolidated revenue for Q3 was nearly INR 3,300 crores (+11.4% YoY), with EBITDA at INR 346.3 crores (10.5% margin), and PAT at INR 97 crores.

• Gross margin contracted by 450 bps YoY to 36.8%.

• CapEx for Q3 was INR 283 crores; nine-month CapEx at INR 713 crores; FY25 guidance at INR 1,050 crores.

• Debt-to-EBITDA at 1.22; debt-to-equity at 0.43; debt reduced to Rs. 1,835 Cr.

• Working capital reduced by INR 84 crores in Q3.

Outlook and guidance

• Q4 expected to see further acceleration in growth, with raw material costs projected to be flat to up 1%.

• Capacity expansion at Nagpur plant targets growth in the Indian 2/3-wheeler tyre market.

• International and replacement segments expected to continue growth; OEM segment on recovery trajectory.

• CapEx to remain bite-sized and focused on brownfield expansions.

• Investment for expansion to be funded through internal accruals and debt.