The company’s revenue increased 22.4% year-on-year to ₹4,318 crore in Q1 FY27 from ₹3,529 crore in Q1 FY26.
Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at ₹365 crore during the quarter, down 5.7% from ₹387 crore in the year-ago period. EBITDA margin declined to 8.5% from 11% in Q1 FY26.
The company reported exceptional items of ₹7 crore during Q1 FY27.
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On a standalone basis, CEAT’s revenue stood at ₹4,163 crore in Q1 FY27, registering an 18% year-on-year growth. The company reported an EBITDA margin of 9.13% and a net profit of ₹98 crore during the quarter.
CEAT has proposed a capital expenditure plan to expand its tyre manufacturing capacity. The company currently has an existing capacity of about 80,000 tyres per day, excluding additional capacity under implementation, with capacity utilisation at around 95%.
Under the proposed expansion plan, CEAT will add about 53,000 tyres per day of capacity. The additional capacity is expected to be completed by the end of FY2031 and will be implemented in phases.
The company has estimated an investment of about ₹1,205 crore for the proposed capacity addition. The investment will be funded through a mix of internal accruals and debt.
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Arnab Banerjee, MD and CEO, CEAT Ltd, said, “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.
Despite these pressures, CEAT delivered strong double-digit revenue growth of 22% year-on-year, supported by healthy demand across segments and high-capacity utilisation. As we enter Q2, we will continue to take a disciplined approach to pricing while staying focused on profitable growth.”
Kumar Subbiah, CFO of CEAT Lts, said, “Commodity cost inflation due to the West Asia War had a significant impact on our raw material costs, leading to a drop in our Q1 margins. We have taken cumulative price increases of 5%.
We expect raw material costs to likely remain at inflated levels in Q2 and hence, we will continue to balance our pricing actions and cost prudence to progressively mitigate the impact on our margins. Our performance across other key parameters, however, remained satisfactory.
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We stayed invested in our capex to the tune of ₹ 300 crores, largely to enhance our capacities to meet our business plan while maintaining tight control over discretionary expenses and routine capex to conserve cash and ensure profitability.”
Shares of CEAT Ltd ended at ₹3,829.30, up by ₹34.50, or 0.91%, on the BSE.
