CECEAT500878Tyres

CEAT's Q2 results showed 26% revenue growth but 40% profit decline due to higher raw material costs, with brokerages giving mixed to positive ratings and an analyst recommending a long-term buy

By ScoutQuest · Fri 16 Oct 2026, 12:42 PM IST · 1 min read

Revenue growth

26 percent

Profit decline

40 percent

Raw material to sales increase

634 basis points

Stock move yesterday

4 percent dip

International business target in 5 years

33 percent of revenue

Heard on business television between 12:51:30 - 12:54:30 IST.

• CEAT reported revenue up 26% but profit down 40% in the quarter, with raw material to sales ratio rising 634 basis points.
• Stock fell 4% yesterday on results but recovered today after management's commentary in the post-results con call.
• Management said demand remains strong across categories but could moderate Y-o-Y due to high base; replacement volumes hit in Q2 due to de-bottlenecking issues, expected to recover from Q3.
• Company targets international business share of 33% of revenue in five years versus 24% now, led by Camso; two-wheeler EV market share currently at 30%, where CEAT is market leader.
• Kotak and IIFL upgraded the stock to 'add' rating; Motilal and most brokerages maintained estimates; Nomura said CEAT is a key beneficiary of premium tyre and EV focus.
• Analyst Girish Sodhani said investors can buy but with a 3-4 year holding horizon given near-term margin pressures.

The call above is Girish Sodhani's, reported here as they made it. Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.

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