Quick Takeaways
- CEAT Limited Q3 FY26 results highlight strong revenue momentum driven by demand recovery
- The tyre maker reports margin stability and steady profits despite labour code provisions
On December 31, 2025, CEAT Limited reported a strong financial performance for the third quarter of FY26, posting a 26% year-on-year increase in consolidated revenue to ₹4,157 crore. The growth was supported by improved traction across business segments and favorable market conditions in both domestic and select international markets.
CEAT Limited Q3 FY26 results driven by broad-based revenue growth
During the quarter, the RPG Group company recorded an EBITDA margin of 13.66%, reflecting improved operating efficiency. Consolidated net profit stood at ₹155 crore, supported by higher volumes and better cost absorption as revenues expanded across key product categories.
On a standalone basis, CEAT delivered equally robust performance. Revenue rose 20% year-on-year to ₹3,957 crore, while EBITDA margin improved to 14.08%. Standalone net profit for the quarter came in at ₹192 crore, highlighting stronger profitability in the core domestic business.
Management commentary on CEAT Limited Q3 FY26 results
Arnab Banerjee, Managing Director and Chief Executive Officer of CEAT Limited, said that the quarter benefited from consistent revenue growth across segments. He noted that the reduction in GST rates helped improve sentiment in the domestic market, while select opportunities emerged in international markets. He added that the company expects the current momentum to continue into the next quarter and through the remainder of the financial year.
Margin performance, costs, and capital expenditure outlook
Chief Financial Officer Kumar Subbiah said that higher revenue improved operating leverage, leading to better operating margins during the quarter. He highlighted that stable commodity prices supported gross margins, although the company recognised a provision of ₹58 crore in Q3 related to the impact of new labour codes.
Subbiah added that CEAT continued capital expenditure initiatives to support future growth, largely funded through internal accruals. As a result, the company’s debt levels remained broadly unchanged compared to the previous quarter, reflecting a balanced approach to growth and financial stability.
Established in 1958, CEAT manufactures tyres across multiple categories, including two- and three-wheelers, passenger vehicles, commercial vehicles, and off-highway vehicles. The company continues to serve both domestic and international markets, positioning itself to benefit from sustained demand recovery and disciplined cost management in the coming quarters.
CEAT Limited Q3 FY26 results driven by broad-based revenue growth
During the quarter, the RPG Group company recorded an EBITDA margin of 13.66%, reflecting improved operating efficiency. Consolidated net profit stood at ₹155 crore, supported by higher volumes and better cost absorption as revenues expanded across key product categories.
On a standalone basis, CEAT delivered equally robust performance. Revenue rose 20% year-on-year to ₹3,957 crore, while EBITDA margin improved to 14.08%. Standalone net profit for the quarter came in at ₹192 crore, highlighting stronger profitability in the core domestic business.
Management commentary on CEAT Limited Q3 FY26 results
Arnab Banerjee, Managing Director and Chief Executive Officer of CEAT Limited, said that the quarter benefited from consistent revenue growth across segments. He noted that the reduction in GST rates helped improve sentiment in the domestic market, while select opportunities emerged in international markets. He added that the company expects the current momentum to continue into the next quarter and through the remainder of the financial year.
Margin performance, costs, and capital expenditure outlook
Chief Financial Officer Kumar Subbiah said that higher revenue improved operating leverage, leading to better operating margins during the quarter. He highlighted that stable commodity prices supported gross margins, although the company recognised a provision of ₹58 crore in Q3 related to the impact of new labour codes.
Subbiah added that CEAT continued capital expenditure initiatives to support future growth, largely funded through internal accruals. As a result, the company’s debt levels remained broadly unchanged compared to the previous quarter, reflecting a balanced approach to growth and financial stability.
Established in 1958, CEAT manufactures tyres across multiple categories, including two- and three-wheelers, passenger vehicles, commercial vehicles, and off-highway vehicles. The company continues to serve both domestic and international markets, positioning itself to benefit from sustained demand recovery and disciplined cost management in the coming quarters.
Company Press Release
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