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

CEAT reported a 22% year-on-year increase in consolidated revenue to ₹4,318 crore for the quarter ended June 30, 2026, while profitability faced significant pressure due to rising raw material costs. The tyre manufacturer's net profit for the quarter stood at ₹4 crore, a sharp decline from ₹112 crore in the corresponding period of the previous year. Despite the top-line growth, operating margins contracted, with EBITDA margins settling at 8.56% compared to 10.94% in Q1FY26. The results have drawn mixed reactions from institutional analysts, with diverging views on the near-term recovery trajectory. The company has also made the transcript of its earnings call held on July 17, 2026, available on its website.

Financial Performance at a Glance

The following table summarises CEAT's key consolidated financial metrics for Q1FY27 compared to the same quarter last year:

*EBITDA is calculated as earnings before finance costs, tax expenses, depreciation and amortisation expenses, exceptional items and other income.

Revenue Growth Contrasts with Profit Decline

CEAT's consolidated revenue grew substantially on a year-on-year basis, rising to ₹4,318 crore from ₹3,529 crore. This growth was driven by healthy demand across segments and high-capacity utilisation. However, the company's consolidated net profit declined sharply to ₹4 crore from ₹112 crore in the year-ago period. This divergence between revenue growth and profit performance points to a significant increase in costs, primarily attributed to raw material cost inflation due to the continuing West Asia crisis.

EBITDA and Margin Contraction

At the operating level, CEAT's EBITDA declined to ₹369 crore from ₹386 crore in the same quarter last year. The EBITDA margin contracted to 8.56% from 10.94% on a year-on-year basis. The margin compression, despite higher revenues, suggests that cost pressures outpaced the benefits of increased sales volumes and the calibrated price increases implemented by the company.

Analyst Views: Nomura vs. Kotak

The Q1FY27 results have prompted contrasting assessments from institutional brokerages. The following table outlines the key positions taken by Nomura and Kotak Institutional Equities:

Nomura maintains a Buy rating with a target price of ₹4,266, acknowledging that Q1FY27 EBITDA missed estimates but expressing confidence that price hikes are expected to drive margin recovery in the second half of FY27. The brokerage also highlights CEAT's premium segment focus, export growth momentum, attractive valuations, and an expected 16% EBITDA CAGR over FY25–29 as key supports for its positive outlook.

Kotak Institutional Equities, in contrast, retains a Reduce rating with a target price of ₹3,350. The brokerage notes that Q1FY27 EBITDA missed its estimates by 13%, driven by weak performance in both the India business and Camso operations. Kotak expects profitability to remain under pressure in Q2 amid raw material and currency headwinds, and flags ongoing Camso integration risks as an additional concern, even as it acknowledges steady domestic execution.

Strategic Developments

The Board of Directors has approved a proposed capital expenditure of about ₹1,205 crore to add approximately 53,000 tyres per day of capacity, expected by the end of FY2031. This investment will be funded through a mix of internal accruals and debt. Additionally, the board approved the re-appointment of M/s. B S R & Co. LLP as the Statutory Auditors for a second consecutive term of five years, subject to shareholder approval.

Key Highlights

• Revenue increased to ₹4,318 crore from ₹3,529 crore YoY
• Net Profit declined sharply to ₹4 crore from ₹112 crore YoY
• EBITDA Margin contracted to 8.56% from 10.94% YoY
• Capex of ₹1,205 crore approved for capacity expansion
• Nomura maintains Buy with target price of ₹4,266; expects margin recovery in 2HFY27
• Kotak maintains Reduce with target price of ₹3,350; flags Q2 headwinds and Camso risks