CEAT Q1 FY26 Concall Decoded: Revenue Crosses ₹3,500 Cr, Net Profit Deflates 27%

1. Opening Hook

Tyres don’t get enough credit. They spin, they grip, they sometimes burst—but CEAT’s Q1 FY26 call proved they can also bore analysts into silence with rubber tariffs and Camso chatter. IPL ads burned cash, OEM growth zoomed, exports stalled, and margins deflated like a puncture on NH44. Yet management insists “premiumisation + EV tyres = future goldmine.” Investors are left wondering—are they inflating the growth story, or just patching it with brand cricket plaster? Stick around, the ride gets bumpier than an Indian highway after monsoon.

2. At a Glance

• Revenue up 10.5% – ₹3,529 Cr; first time crossing ₹3,500 Cr, celebrated like winning Ranji Trophy.
• Volume up 9% – Mostly OEM; replacement market crawled like an autorickshaw uphill.
• EBITDA ₹386 Cr, margin 10.9% – Down 122 bps YoY; rubber ate the profits, literally.
• Net Profit ₹112 Cr – Down 27% YoY; dividend optics from Sri Lanka couldn’t save it.
• Debt down ₹115 Cr – Balance sheet fit, but Camso deal ahead means more carbs coming.
• Capex guidance ₹1,000 Cr – Plus ₹450 Cr Chennai PCR project; tyres getting fatter, wallet thinner.

3. Management’s Key Commentary

Quote: “EV-specific tyres, run-flats, and smart tyres are the future.”
(Translation: Don’t look at falling margins, look at shiny new buzzwords 😏.)

Quote: “OEM growth was strong in the 20s, replacement muted.”
(Read: Carmakers love us, but aam aadmi still stretching his old tyres another 5,000 km.)

Quote: “International business was flat due to tariffs, Europe slow, US uncertain.”
(Translation: Blame geopolitics, not us.)

Quote: “Gross margins contracted 245 bps YoY, but RM basket will ease in Q2.”
(Read: Pray global rubber doesn’t bounce back harder than Virat Kohli.)

Quote: “We’re dominant in 2-wheeler EV fitments, though share dipped to 12%.”
(Translation: Ola and Ather went shopping elsewhere, but we’ll claw back.)

Quote: “Camso will add $150M revenue run rate once deal closes.”
(Read: Mid-teens margin dreams, but first let’s survive Sri Lanka tariffs.)

Quote: “50% of sales come via CEAT Shoppes.”
(Translation: We bribed your local tyre-wala into selling only CEAT.)

4. Numbers Decoded