CEAT Ltd (CEATLTD) Q1 FY27 Results Analysis: Margin Slips 541 bps, PAT Plunges 96%

CompoundingAI Research Updated July 16, 2026 2 min read

Negative

CEAT Ltd's Q1 FY27 numbers came in soft, with revenue of Rs. 4,163.00 Cr (+18.20% YoY) and PAT growth of -27.40% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	July 16, 2026
Quarter	Q1 FY 2026-2027
Revenue (Q1)	Rs. 4,163.00 Cr (+18.20% YoY)
PAT (Q1)	Rs. 98.00 Cr (-27.40% YoY)
EBITDA margin	9.13% (-197 bps YoY)
EPS (Q1)	Rs. 24.41 (-27.00% YoY)
Market cap	Rs. 15,466.28 Cr
CMP	Rs. 3,829.30

Quarter Snapshot

Revenue grew 18% YoY but EBITDA margin collapsed 541 bps QoQ to 9.13% as raw material costs surged. PAT fell 27% standalone and 96% consolidated, with CAMSO acquisition dragging consolidated earnings. Near-term headwinds persist with elevated raw material costs, though capacity expansion and credit rating stability provide some long-term support.

Key Investment Insights

Key Positives

Standalone revenue grew 18.2% YoY to Rs.4,163 Cr; consolidated revenue grew 22.4% YoY to Rs.4,318 Cr.
Price increases in replacement (~5%) partially offset input cost inflation.
Standalone inventory turnover improved to 12.24x from 11.19x QoQ.
Board approved Rs.1,205 Cr capex for two-wheeler capacity expansion, reflecting demand optimism.
India Ratings affirmed NCDs at IND AA/Positive and CP at IND A1+.
Standalone net worth increased QoQ from Rs.5,067 Cr to Rs.5,126 Cr.

Risk Factors

Standalone EBITDA margin compressed 541 bps QoQ to 9.13% due to raw material cost spike (cost of materials consumed +20.8% QoQ).
Consolidated PAT collapsed 96.4% YoY to Rs.4 Cr, dragged by CAMSO losses including Rs.48 Cr FX reclassification.
CFO stated raw material costs likely to remain at inflated level in Q2, suggesting no near-term relief.
Consolidated D/E rose to 0.65x from 0.60x QoQ due to higher debt.
Standalone PAT fell 27.4% YoY to Rs.98 Cr despite strong revenue growth.