CEAT Limited Q3 FY26 Concall Decoded: Revenue jumps 26% YoY, margins flex—but profits trip on labour law speed-breaker

1. Opening Hook

Just when inflation was supposed to behave, raw materials quietly nudged up, labour laws said “surprise,” and CEAT decided this was the perfect quarter to post its best margin in years.
Yes, while most auto ancillaries are still blaming China, monsoons, and Mercury retrograde, CEAT casually printed 13.7% EBITDA margins and smiled through a ₹58 Cr exceptional hit.

Volumes grew, exports woke up from their nap, and debt politely stepped back.
PAT, however, tripped over compliance and fell face-first—temporarily, management insists.

If you thought tyre companies were boring, read on.
Because somewhere between Siberia hashtags and labour codes, this call actually gets interesting.

2. At a Glance

• Revenue up 26% YoY – Apparently tyres are now a growth asset class.
• EBITDA up 64% YoY – Operating leverage finally doing what it promised in PPTs.
• EBITDA margin at 13.7% – The highest flex in recent memory.
• PAT down QoQ – Labour laws entered the chat with a ₹58 Cr bill.
• Debt/EBITDA at 1.58x – Balance sheet went to the gym, quietly.
• Capex ₹254 Cr in Q3 – Growth isn’t free, but it’s being paid for.

3. Management’s Key Commentary

“We witnessed healthy volume growth across all segments.”