Auto Tyres & Rubber Products company Ceat announced Q2FY27 results Consolidated Financial Results: Revenue from operations: Stood at Rs 4,762 crore in Q2FY27, representing a growth of 10.28% QoQ from Rs 4,318 crore in Q1FY27, and an increase of 26.21% YoY from Rs 3,773 crore in Q2FY26. Total Income: Reached Rs 4,767 crore in Q2FY27, up 10.25% QoQ from Rs 4,324 crore in Q1FY27, and increased by 26.21% YoY from Rs 3,777 crore in Q2FY26. Net Profit: Reported at Rs 112 crore in Q2FY27, showcasing a significant surge of 2,700% QoQ from Rs 4 crore in Q1FY27, but a decline of 39.78% YoY compared to Rs 186 crore in Q2FY26. EBITDA Margin: Recorded at 9.5% for Q2FY27. Standalone Financial Results: Revenue from operations: Stood at Rs 4,548 crore in Q2FY27, registering a growth of 9.25% QoQ from Rs 4,163 crore in Q1FY27, and an increase of 22.89% YoY from Rs 3,701 crore in Q2FY26. Total Income: Reached Rs 4,588 crore in Q2FY27, up 9.63% QoQ from Rs 4,185 crore in Q1FY27, and increased by 23.40% YoY from Rs 3,718 crore in Q2FY26. Net Profit: Reported at Rs 164 crore in Q2FY27, increasing by 67.35% QoQ from Rs 98 crore in Q1FY27, while witnessing a decline of 18.81% YoY compared to Rs 202 crore in Q2FY26. EBITDA Margin: Recorded at 10.14% for Q2FY27. Business & Segment Highlights: Segment Performance: The company delivered strong double-digit revenue growth primarily led by growth in premium segments across various Business Units (BUs). Operational Resilience: The ongoing crisis and conflict in West Asia kept commodity and raw material costs elevated during Q2FY27. The company effectively responded to these challenges through tighter cost controls, disciplined execution, and a focus on calibrated pricing actions to improve the product mix. Capital Expenditure: Debt levels increased during Q2FY27, largely driven by dividend payouts and a higher capital expenditure of close to Rs 490 crore. This investment was aimed at increasing capacities where utilization has been high to meet demand and drive profitable growth. Acquisitions & Investments: The company acquired the Camso brand's Off-Highway construction equipment tyre and tracks business from the Michelin Group through its wholly-owned subsidiary, CEAT OHT Lanka (Private) Limited. The deal was valued at USD 225 million, which included a commitment to acquire the Camso trademark for a pre-determined value of USD 44 million and inventories of approximately USD 44 million. For this transaction, the company initially remitted Rs 274 crore as an investment in equity and Rs 719 crore as a loan to the subsidiary. Further, during Q2FY27, a USD 24.5 million loan given to the subsidiary was converted into equity equivalent to Rs 234 crore. Arnab Banerjee, MD & CEO, CEAT, said: “In Q2, we delivered a strong double-digit revenue growth of 26% YoY, continuing the momentum of the past several quarters, led by growth in premium segments across BUs. The West Asia crisis kept raw material costs high and did present challenges, but we responded with tighter cost controls and disciplined execution. In the second half of the year, we shall look at delivering double digit growth again, alongside further price hikes." Kumar Subbiah, CFO, CEAT, said: “The continuing conflict in West Asia kept commodity costs elevated during the quarter. We will remain focused on calibrated pricing actions and improving our product mix, with moderate price increases. Debt increased during the quarter, largely due to higher capital expenditure of close to Rs 490 crore to increase our capacities where utilisation has been high and dividend payouts. In Q3, we expect cost pressures to persist into Q3 as the commodity prices continue to remain high. However, we will continue to maintain fiscal discipline while investing to meet demand and drive profitable growth.” Result PDF
