CEAT Limited has granted 74,247 stock options to eligible employees under the CEAT Employees Stock Option Scheme 2025, marking a key step in its talent retention strategy. The Nomination and Remuneration Committee approved the grant during a meeting held on July 24, 2026, setting the exercise price at ₹2,842.83 per option. This pricing reflects a 15% discount on the market price as defined by the scheme, aligning with standard industry practices for employee incentives. The move aims to align employee interests with long-term shareholder value creation.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The committee confirmed that the scheme operates in compliance with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. Each option granted is convertible into one Equity Share of the company, carrying a face value of ₹10. The total number of shares covered by these options is 74,247.

Scheme Structure and Terms

The options are administered through a trust route, wherein the CEAT Limited Welfare Trust acquires existing shares via secondary acquisition from the market. This structure ensures that the grant does not result in immediate dilution of existing shareholders' stakes through fresh issuance. The Nomination and Remuneration Committee acts as the Compensation Committee for administering the scheme.

Employees may exercise their vested options wholly or partly within a maximum period of three years from the date of respective vesting. The exercise can be conducted via cash mechanism or cashless mechanism, subject to relevant provisions. The diluted earnings per share impact will be assessed only upon the actual exercise of these options.

What the Numbers Show

The exercise price of ₹2,842.83 indicates the market valuation baseline used by the committee at the time of grant. By applying a 15% discount, the company provides immediate intrinsic value to employees, contingent upon future vesting conditions. The use of secondary market acquisitions for fulfilling these obligations suggests a focus on maintaining capital efficiency without altering the company’s authorized share capital immediately. This approach balances employee motivation with shareholder protection against dilution.

CEAT Ltd has issued the notice for its 67th Annual General Meeting (AGM) scheduled for Monday, August 17, 2026, at 3:00 p.m. IST, to be held via Video Conferencing (VC) / Other Audio-Visual Means (OAVM). The meeting will also take up the declaration of a final dividend of ₹35 per equity share (350% of face value of ₹10 each) for the financial year ended March 31, 2026, subject to shareholder approval. The record date for dividend eligibility has been fixed as Friday, July 31, 2026, with payment expected on or before Wednesday, September 16, 2026. The dividend is the highest in the company's history, up from ₹30 per share in the previous year.

Financial Performance Highlights

CEAT delivered a landmark performance in FY 2025-26, crossing the Rs. 15,000 Crore revenue milestone. The following table summarises key standalone and consolidated financial metrics:

On a standalone basis, net profit stood at Rs. 81,272 Lakhs against Rs. 48,210 Lakhs in the previous year. The consolidated gross margin strengthened to 39.40% from 37.70%, an improvement of approximately 167 basis points. Consolidated EBITDA grew 38% over the previous year, and consolidated net profit grew 48%, reflecting disciplined execution and improved operating efficiencies. Consolidated gross debt increased to Rs. 3,01,079 Lakhs from Rs. 1,92,835 Lakhs, with a healthy debt-to-EBITDA ratio of approximately 1.46x.

Capital Expenditure and Strategic Acquisitions

During FY 2025-26, the company incurred capital expenditure of approximately Rs. 1,315 Crore towards capacity expansion across product segments. A significant milestone was the completion of the acquisition of the CAMSO brand's Off-Highway Construction Equipment bias tyre and rubber tracks business from Michelin Group, effective September 1, 2025. The total consideration for the CAMSO acquisition amounted to Rs. 1,18,556 Lakhs (excluding brand and finished goods), with goodwill of Rs. 724 Lakhs recognised. For the seven months ended March 31, 2026, the CAMSO acquired business contributed revenue from sales of Rs. 42,065 Lakhs. Additionally, approximately Rs. 239 Crore was invested towards acquisition of intangibles relating to the CAMSO business.

Business Segment and Operational Performance

The company's growth was broad-based across all segments. Replacement segment grew by 10.80%, OEM by 23%, and Exports by 18.49%. In FY 2025-26, the company manufactured more than 4.50 Crore tyres, up from 3.96 Crore in FY 2024-25, with capacity utilisation remaining robust at more than 80%. The Chennai plant emerged as one of India's largest four-wheeler radial manufacturing facilities. The company expanded its global presence by entering markets such as Japan, Australia, New Zealand, Estonia, and Lithuania.

AGM Business and Dividend Details

The 67th AGM will transact the following key business items: adoption of standalone and consolidated audited financial statements for FY 2025-26; declaration of a final dividend of Rs. 35 per equity share; re-appointment of Mr. Anant Vardhan Goenka as Director retiring by rotation; ratification of remuneration of M/s D.C. Dave & Co. as Cost Auditor; authorisation for issuance of Non-Convertible Debentures up to Rs. 1,000 Crore on private placement basis; and continuation of Mr. Paras Kumar Chowdhary as Non-Executive, Non-Independent Director pursuant to Regulation 17(1A) of SEBI Listing Regulations. The dividend will be subject to Tax Deducted at Source (TDS) at applicable rates, and shareholders have been advised to submit requisite documents on or before Friday, July 31, 2026.

Sustainability and ESG Highlights

CEAT continued to advance its sustainability agenda during FY 2025-26. Renewable energy contributed approximately 48% of total energy consumption, with a target to achieve approximately 60% renewable electricity by FY 2027-28. The company achieved approximately 26% reduction in Scope 1 and Scope 2 emissions intensity compared to the 2021 baseline. Sustainable materials used in tyres stood at 31.37%, progressing towards a target of approximately 40% by 2030. The company maintained 100% EPR compliance and diverted 99% of waste from disposal. CSR spend for FY 2025-26 was Rs. 7.34 Crore, benefiting 1,38,813 individuals. Government grants recognised as income amounted to Rs. 129 Crore in FY 2025-26, compared with Rs. 124 Crore in FY 2024-25.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE482A01020/b5f3df00-ec2e-4133-ace9-c2eb91f3c9bd.pdf