India · Delayed Price · Currency is INR CEAT Limited Earnings Call Transcripts
Fiscal Year 2026
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FY 2026 delivered strong double-digit revenue and profit growth, driven by GST rate cuts and robust demand across segments. Raw material inflation and geopolitical risks pose near-term challenges, but price hikes and cost controls are planned to sustain margins.
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Q3 FY2026 saw record revenue and strong growth across all segments, with EBITDA margin expansion and robust replacement and OEM demand post-GST cut. Camso integration is on track, with transition costs set to normalize, and major CapEx approved for capacity expansion.
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Q2 FY26 saw 14.2% revenue growth and over 11% volume growth, with gross margin up 400+ bps YoY. Camso acquisition completed, integration on track, and GST cuts boosted demand. Debt and CapEx rose for expansion, while U.S. tariffs and rupee depreciation remain key risks.
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Q1 FY26 delivered strong revenue growth, led by OEM and replacement segments, with market share gains in premium and two-wheeler categories. Margins contracted due to higher raw material costs, but lower input prices and international recovery are expected to support future profitability.
Fiscal Year 2025
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The acquisition secures premium brand access, two Sri Lankan plants, and a global customer base, with a $225 million deal structure and phased integration over 18 months. Initial margins and turnover will be lower during transition, but long-term benefits include higher capacity utilization and margin accretion by FY 2028.
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Q4 FY25 saw record revenue and 11% volume growth, with strong performance in replacement and OEM segments. Gross margin improved QoQ, but full-year profit declined YoY. Camso integration, premium product launches, and ESG progress are key focus areas.
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Q3 FY25 delivered 11.6% YoY revenue growth and strong double-digit gains in international and replacement segments, though margins contracted due to raw material inflation. High capacity utilization, ongoing brownfield expansions, and the upcoming Camso acquisition are set to drive further growth, especially in exports.
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Achieved record revenue and volumes with strong double-digit growth in replacement and export segments, while OEM declined. Margins contracted due to higher raw material costs, but further price hikes and moderating input inflation are expected to support margin recovery in H2.
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Q1 FY25 delivered record revenue and strong volume growth, led by replacement and export segments, but margins contracted due to a sharp rise in raw material costs. Price hikes and continued investments in R&D, premiumization, and capacity expansion are expected to support double-digit growth and margin recovery in coming quarters.
Fiscal Year 2024
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The $225 million acquisition of Camso’s OHT business aligns with premiumization and global expansion, adding high-margin tracks and tires, 750+ SKUs, and 200+ distributors. Integration is planned over six months, with full brand ownership after three years and significant market share gains expected.