Ceat (500878) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 revenue grew 14.3% YoY to INR 3,420.6 crore, with full-year revenue at INR 13,218 crore, both record highs driven by volume and price growth; OEM and replacement segments led growth.

• Q4 standalone profit was INR 100.4 crore, up QoQ; consolidated Q4 PAT was INR 98.7 crore, with full-year PAT at INR 471.4 crore, down YoY.

• Volume growth in Q4 was 11%, with full-year volume growth at 7%.

• Board recommended a 300% dividend (INR 30/share) for FY25, subject to shareholder approval.

• Camso acquisition integration underway; results to be consolidated from Q2 FY26.

Financial highlights

• Q4 FY25 gross margin was 37.5%, up QoQ but down YoY; EBITDA margin at 11.5%, up 101 bps QoQ but down 189 bps YoY.

• CapEx for FY25 was INR 946 crore, mainly for capacity expansion; Q4 CapEx was INR 235 crore.

• Debt at end-Q4 FY25 stood at INR 1,928 crore, up INR 95 crore QoQ; Debt/EBITDA at 1.29x, Debt/Equity at 0.44x.

• EPS for FY25 at INR 116.84.

Outlook and guidance

• Tyre market expected to grow at 6-7% CAGR in volume terms till 2047; exports to grow at 10-11% long-term.

• Management expects continued growth, with Camso integration and capacity expansion as key drivers.

• Gross margin targeted to improve towards 40%+ in coming quarters.

• Q1 FY26 expected to see continued rural demand strength, with urban demand remaining soft.