Revenue from operations rose more than 23% YoY to Rs 4,219 crore during the quarter under review, from Rs 3,421 crore reported in the Q4 of FY25. Total expenses grew over 19% year-on-year (YoY) to nearly Rs 3,895 crore, while EBITDA margin stood at 14.18%.
Along with the Q4 results, the tyre-maker recommended a dividend of Rs 35 per equity share (350% over a face value of Rs 10), subject to shareholders’ approval. This is higher than the Rs 30 dividend it paid in 2025 and 2024.
Speaking about the company’s performance in the fourth quarter, CEAT CEO and MD Arnab Banerjee said that the company delivered high growth in all segments, including international business, despite geopolitical tensions. “Looking ahead, while there is a momentum on top line, we have short-term challenges on supply chain and costs due to steep increase raw material cost that we intend to mitigate through pricing and strong cost management. We intend to continue expanding our capacities in line with our growth plans,” he added.
Overall, FY26 has been a strong year where the company delivered robust growth in top line as well as in bottom line, Banerjee said, adding, “We crossed an important milestone of Rs 15000 crores of revenue, accompanied by market share gains in replacement and OEMS. We successfully closed the CAMSO deal during the year.”
Motilal Oswal on CEAT
Motilal Oswal maintained a ‘Buy’ rating on the shares of CEAT, noting that the company’s net sales grew 23.3% (largely in line with its estimates) in Q4, aided by healthy YoY volume growth across all segments and slightly better realisations. Management expects growth momentum to continue going forward, it highlighted.
The domestic brokerage added that the company’s EBITDA margin expanded to 14%, ahead of its estimate, led by operating leverage benefits. It further said that the strong PAT beat was driven by higher other income.
CEAT share price
CEAT shares later pared some gains to trade around 6% higher at Rs 3,720 apiece, as seen at 11.20 am. The stock has fallen around 2% in one week, but gained more than 7% in one month and 22% in one year.
In the longer term, the shares of the company have jumped 140% in three years and 173% in five years. The company currently has a market capitalisation of Rs 15,059 crore.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
