01 — At a Glance
The Tyre That Keeps Rolling Despite Rubber Drama
- 52-Week High / Low₹4,438 / ₹2,322
- Q3 FY26 Revenue₹4,157 Cr
- Q3 FY26 PAT₹155 Cr
- TTM EPS₹136.88
- Annualised EPS (Q3 Avg × 4)₹149.71
- Book Value / Share₹1,130
- Price to Book3.20x
- Debt / Equity0.68x
- ROCE15.4%
- 3-Month Return-4.75%
Flash Summary: CEAT delivered Q3 FY26 consolidated revenue of ₹4,157 crore (+26% YoY) — its highest-ever quarterly number — and PAT of ₹155 crore (+102% YoY). Volumes grew 20.9% standalone. CAMSO acquisition is already contributing, Chennai expansion of ₹1,314 crore just approved, yet the stock trades at 23.6x P/E with 15.4% ROCE. Rubber prices and rupee depreciation are the usual suspects trying to slow the tyre down. Classic Indian auto-ancillary plot twist.
02 — Introduction
The Tyre Company That Refuses to Go Flat
Picture this: you’re cruising on a Mumbai-Pune highway at 3 a.m. and your truck tyre decides to call it quits. Who do you curse first? Not the pothole. Not the monsoon. You curse the tyre brand. Then you remember CEAT — the RPG Group’s tyre arm that has been quietly stitching India’s roads together since 1958.
CEAT isn’t flashy like MRF or as rural as Balkrishna. It’s the middle-child tyre maker that somehow keeps gaining share in replacement (54%), OEM (27%) and exports (19%). Q3 FY26 was a blockbuster: revenue hit an all-time high, PAT doubled YoY, and the board dropped a ₹1,314 crore Chennai capex bomb right after the results. Meanwhile, the CAMSO acquisition (completed Sep 2025) is already in the books. The only villains? Natural rubber hovering around ₹188-190/kg and a rupee that weakened to ~91/USD. Same old, same old.
Concall (Jan 2026) was pure desi management honesty: “GST revision improved affordability… replacement demand mid-to-high single digit… we need a couple of quarters to judge sustainability.” Translation: tyres are rolling, but rubber is trying to puncture the party.
CARE Ratings (Jan 2026): AA (Positive) / A1+ reaffirmed. Liquidity strong, gearing 0.93x post-CAMSO, net debt/PBILDT 2.34x. They see CAMSO turning margin-accretive from FY28. Nothing to see here — just a tyre company with RPG DNA and big expansion plans.
03 — Business Model: WTF Do They Even Do?
They Make Rubber Meet Road. Literally.
CEAT buys natural rubber (the villain), synthetic rubber, carbon black, steel cords, and blends them into 2,000+ SKUs across trucks, buses, 2/3-wheelers, passenger cars, off-highway and LCVs. Six plants (Nashik, Halol, Chennai, Nagpur, etc.) churn out 3.5 crore tyres a year. Replacement market (54%) is the cash cow, OEMs (27%) give volume, exports (19%) give bragging rights in 110 countries.
They just bought Michelin’s CAMSO compact construction bias-tyre business for US$225 million — now selling under CEAT while sourcing semi-finished goods from Michelin. Smart move to jump into higher-margin off-highway without building from scratch. Plus, 50+ OEM approvals (Tata Motors, Ashok Leyland, Maruti, Royal Enfield — the usual suspects). Distribution? 5,500 dealers, 950 special channels, 1,115 CEAT Shoppe stores across 900 districts. Basically, every mechanic in India has CEAT stock somewhere.
Replacement54%of revenue
OEM27%of revenue
Exports19%of revenue
2W/3W28%segment share
Fun fact from concall: CEAT claims 30%+ share in OEM PCUV EV segment and ~20% in 2W EV. While everyone screams “EV will kill tyres”, CEAT is quietly fitting EVs and planning immersion-cooling-adjacent tech. Classic detective move — stay ahead of the plot twist.
💬 At 23.6x P/E with 15.4% ROCE and ₹1,314 Cr fresh capex, do you think CEAT is finally breaking out of the tyre-industry discount club? Or is rubber volatility the eternal villain? Comment below!
04 — Financials Overview
Q3 FY26: Revenue Record, PAT Doubles, Margins Under Rubber Attack
Result type: Quarterly Results | Q3 FY26 EPS: ₹38.51 | Q1 EPS ₹27.80 + Q2 ₹45.97 + Q3 ₹38.51 / 3 = ₹37.43 | Annualised EPS: ₹149.71
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 4,157 | 3,300 | 3,773 | +26.0% | +10.2% |
| Operating Profit | 563 | 341 | 503 | +65.1% | +12.0% |
| OPM % | 14% | 10% | 13% | +400 bps | +100 bps |
| PAT | 155 | 76 | 186 | +102% | -16.7% |
| EPS (₹) | 38.51 | 18.80 | 45.97 | +105% | -16.2% |
P/E Check: TTM EPS ₹136.88. CMP ₹3,640. P/E = 26.6x (screener shows 23.6x — minor rounding). Industry median 25.3x. CEAT trades at a slight premium but with CAMSO integration and Chennai capex, the market is still waiting for the full margin story. Concall confirmed 1-1.5% margin hit in Q4 from rupee and rubber — classic tyre industry plot.
💬 Q3 revenue record but QoQ PAT dip due to rubber/FX. Is this just a temporary puncture or the start of margin pressure? Tell us in comments!
05 — Valuation: Fair Value Range
What’s This Tyre Actually Worth?
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