CEAT Q2 FY27 result: Net profit drops 40%; revenue from operation rises to ₹4,762 crore YoY

The RPG Group firm’s revenue from operations for the quarter under review stood at ₹4,762 crore, marking a growth of 26% from ₹3,773 crore reported in the second quarter of FY26.

For Q2 FY27, the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) slipped 9% year-on-year (YoY) to ₹457 crore as against ₹503 crore reported in the same quarter of FY26. Its margin contracted at 9.60% in contrast to 13.33% YoY.

On a standalone basis, the company’s revenue stood at ₹4,548 crore, 23% YoY and the EBITDA margin stood at 10.14% and net profit was reported at ₹164 crore.

For half a year (H1 FY27), CEAT’s net profit declined 61% to ₹116 crore as compared to ₹298 crore on a YoY basis. Its revenue from operations for H1 FY27 stood at ₹9,080 crore as against ₹7,302 crore in H1 FY26, marking a growth of 24%.

CEAT CFO Kumar Subbiah said the continuing conflict in West Asia kept commodity costs elevated during the quarter. He added that the company would focus on calibrated pricing actions, improving its product mix and moderating price increases.

Debt increased during the quarter, largely due to capital expenditure of close to ₹490 crore to expand capacities where utilisation had been high and dividend payouts, Subbiah said.

“In Q3, we expect cost pressures to persist into Q3 as the commodity prices continue to remain high. However, we will continue to maintain fiscal discipline while investing to meet demand and drive profitable growth,” added Subbiah.

Along with its earnings, CEAT’s board approved the appointment of Sumeet Narang as an additional director in the capacity of a non-executive independent director for a five-year term, from October 14, 2026, to October 13, 2031.

Commenting on the outlook of the business, Arnab Banerjee, MD & CEO, CEAT Limited, said, “The West Asia crisis kept raw material costs high and did present challenges, but we responded with tighter cost controls and disciplined execution. In the second half of the year, we shall look at delivering double digit growth again, alongside further price hikes.”

On Wednesday, October 14, CEAT shares closed at ₹3,357.90 apiece on the National Stock Exchange, rising 2.03%. The company has a market capitalisation of ₹13,582.74 crore.