CEAT shares slip 9% as Q1 FY27 net profit plunges 96% following West Asia crisis impact

CEAT shares declined 9.3% to touch an intraday low of ₹3,471.10 apiece on Friday, July 17, as the tyre maker’s earnings for the June quarter disappointed the market investors.

The RPG Group firm reported a 96.4% decline in its consolidated net profit at ₹4 crore for the quarter ending June 30 of the financial year 2026-27 (Q1 FY27). The company had seen a profit of ₹112 crore in the same quarter of the previous fiscal year.

CEAT’s revenue from operations for the quarter under review stood at ₹4,318 crore, marking a growth of 22% from ₹3,529 crore reported in the first quarter of FY26.

For Q1 FY27, the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) slipped 6% year-on-year (YoY) to ₹365 crore as against ₹387 crore in Q1 FY26. Its margin contracted at 8.45% in contrast to 10.97% YoY.

The company said its board of directors has approved a ₹1,205-crore investment plan for capacity expansion in the two-wheeler segment to support future growth opportunities. It also plans to add capacity by 53,000 tyres per day in a phased manner by FY31, up from the current 80,000 tyres per day.

The proposed expansion would be funded through a mix of internal accrual and debt, CEAT said. It also said that existing capacity utilisation is around 95% of installed capacity.

“Q1 was a challenging quarter for the industry. The continuing West Asia crisis led to significant raw material cost inflation, which weighed on our gross and operating margins. We responded with calibrated price increases to partly offset the impact, while staying focused on demand and market share,” said Arnab Banerjee, MD & CEO, CEAT Limited.

Banerjee said that as the company enters Q2, it will continue to maintain a disciplined approach to pricing while remaining focused on driving profitable growth.

The company said on a standalone basis, its revenue stood at ₹4,163 crore, 18% YoY and EBITDA margin stood at 9.13%, while net profit was reported at ₹98 crore.

Kumar Subbiah, CFO of CEAT Limited, said that commodity cost inflation due to the West Asia War had a significant impact on the company's raw material costs, leading to a drop in its Q1 margins.

CEAT share price trends

At 12:25 PM, CEAT shares were trading at ₹3,552 apiece on the National Stock Exchange, falling 7.25%.

From the beginning of the year, CEAT shares have lost nearly 6%. Over a month’s time, the stock has surged 2%, while it has declined 8% in the past six months.

Shares of the firm had hit a 52-week high of ₹4,438 on October 23, 2025, and a 52-week low of ₹3,000.50 on August 26, 2025.

According to NSE data, as of July 17, 2026, CEAT has a total market capitalisation of ₹14,416.82 crore.