{"id":25200,"date":"2026-04-29T12:40:00","date_gmt":"2026-04-29T07:10:00","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=25200"},"modified":"2026-04-29T12:52:55","modified_gmt":"2026-04-29T07:22:55","slug":"ceat-q4fy26-profit-145pc-shares-rally-12pc","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/ceat-q4fy26-profit-145pc-shares-rally-12pc\/","title":{"rendered":"CEAT Q4 FY26: Net Profit Surges 145% to \u20b9244 Crore, Shares Jump 12%"},"content":{"rendered":"

RPG Group’s tyre maker posts record annual profit of \u20b9697 crore, declares highest-ever \u20b935\/share dividend as revenue crosses \u20b915,000 crore for full year<\/strong><\/p>\n

CEAT Limited<\/a>, the RPG Group’s tyre manufacturing arm, reported a 145.1% year-on-year jump in consolidated net profit to \u20b9243.85 crore for the January\u2013March quarter (Q4 FY26), compared to \u20b999.49 crore in the same period last year. The results were announced after market hours on Tuesday, April 28, 2026, and triggered a sharp rally in the stock the following morning.<\/p>\n

Revenue from operations climbed 23% year-on-year to \u20b94,219 crore in Q4 FY26, against \u20b93,421 crore in Q4 FY25. EBITDA margin stood at 14.18% for the quarter. Operating income rose nearly 53% to \u20b9593 crore, with the EBIT margin widening to 14% from 11.3% a year ago.<\/p>\n

The profit surge was driven by strong operating performance, led by the international business and an improved product mix. CEAT also completed the full integration of Camso, the off-highway tyre brand it had acquired, into its portfolio during the year.<\/p>\n

For the full year FY26, CEAT crossed \u20b915,000 crore in revenue and reported a record annual net profit of \u20b9697 crore, with market share gains across both replacement and OEM segments.<\/p>\n

Dividend at Record High<\/strong><\/h2>\n

CEAT’s board has recommended a final dividend of \u20b935 per equity share for FY26, the highest in the company’s history, amounting to a total payout of approximately \u20b9142 crore. The dividend is subject to shareholder approval at the upcoming Annual General Meeting.<\/p>\n

Management Commentary<\/strong><\/h2>\n

CFO Kumar Subbiah said the company improved operating margins by over 51 basis points during the quarter, “driven by a sharper focus on operating efficiencies, scale, and disciplined cost management.” He added that the balance sheet remains strong and leverage ratios are healthy, even as gross debt has increased. Subbiah stated that the company remains “committed to maintaining a cautious leverage profile with adequate liquidity.”<\/p>\n

Raw Material Headwind Ahead<\/strong><\/h2>\n

Despite the strong quarterly showing, management flagged a near-term challenge. CEAT CEO Arnab Banerjee noted that the company has already initiated price hikes to counter rising input costs, with around a 5% increase implemented between March and April. However, this remains insufficient against a sharp 13\u201315% surge in raw material prices, making further calibrated hikes necessary.<\/p>\n

For FY27, CEAT expects continued momentum on the top line but anticipates short-term supply chain and cost pressures. The company plans to mitigate these through calibrated pricing actions and cost management, while continuing capacity expansion.<\/p>\n

Sector Tailwinds Supporting Demand<\/strong><\/h2>\n

According to Motilal Oswal, tyre demand has continued to improve following GST rate cuts, with recovery visible across both replacement and OEM segments. OEM demand is expected to remain healthy, with high single-digit growth overall, while the truck and bus segment is seeing a revival supported by e-commerce activity, infrastructure spending, and improved fleet utilisation.<\/p>\n

ICICI Securities has flagged that export demand is expected to remain robust, supported by India’s increasing role as a sourcing hub for global markets, particularly across Europe, Latin America, and Africa. However, the Camso integration could continue to weigh on margins in the near term, while geopolitical risks and demand slowdown in developed markets remain key risks to watch.<\/p>\n

Stock Performance and Valuation<\/strong><\/h2>\n

CEAT’s stock closed 0.52% lower at \u20b93,516.70 on the NSE on Tuesday before the results were declared. The scrip had declined 7% in the prior week and fallen 6% on a year-to-date basis, after hitting a 52-week high of \u20b94,438 on October 23, 2025. Following the results, the stock rallied approximately 12% in early trade the next day.<\/p>\n

Analysts broadly maintain a ‘Buy’ consensus on the stock, with average 12-month price targets implying a potential upside of 14\u201317% from current levels. A consensus of 15 recent research reports pegs the average target price at \u20b94,357.<\/p>\n

Should You Buy?<\/strong><\/h2>\n

The Q4 print clearly beat most pre-result estimates, and the full-year record profit of \u20b9697 crore gives CEAT strong fundamental footing. However, the 13\u201315% raw material cost spike is a genuine near-term margin risk. The stock’s 12% post-result pop already prices in much of the earnings surprise. Investors with a 12\u201318 month horizon and an appetite for raw material volatility may find the current levels reasonable, but short-term traders should note that the easy upside from this result may already have been captured in the opening surge.<\/p>\n

Also Read: Adani to Birla: Promoters Bought \u20b933,000 Cr of Own Stock in Q4 Crash<\/a><\/p>\n

FAQs<\/h2>\n

What was CEAT’s net profit in Q4 FY26?<\/strong><\/h3>\n

CEAT reported a consolidated net profit of \u20b9243.85 crore in Q4 FY26, a 145.1% jump year-on-year from \u20b999.49 crore in Q4 FY25.<\/p>\n

What is CEAT’s dividend for FY26?<\/strong><\/h3>\n

CEAT’s board has recommended a final dividend of \u20b935 per equity share for FY26, the highest in the company’s history, subject to shareholder approval at the AGM.<\/p>\n

What is the analyst target price for CEAT in 2026?<\/strong><\/h3>\n

A consensus of 15 research reports places the average 12-month target price for CEAT at \u20b94,357, implying a potential upside of 14\u201317% from pre-rally levels.<\/p>\n

What are the risks for CEAT in FY27?<\/strong><\/h3>\n

CEAT faces a 13\u201315% surge in raw material costs in FY27. The company has implemented a 5% price hike between March and April 2026 but has flagged the need for further calibrated increases to protect margins.<\/p>\n

Is CEAT a buy after Q4 FY26 results?<\/strong><\/h3>\n

Analysts maintain a broad ‘Buy’ consensus with a \u20b94,357 average target. However, the 12% post-result rally may have captured near-term upside. Investors with a 12\u201318 month horizon may still find value, while short-term traders should factor in raw material headwinds.<\/p>\n

Why did CEAT shares rally 12%?<\/strong><\/h3>\n

CEAT shares rallied approximately 12% after the company reported a 145% surge in Q4 net profit, record annual earnings, and its highest-ever dividend, all announced post-market hours on April 28, 2026.<\/p>\n","protected":false},"excerpt":{"rendered":"

RPG Group’s tyre maker posts record annual profit of \u20b9697 crore, declares highest-ever \u20b935\/share dividend as revenue crosses \u20b915,000 crore for full year CEAT Limited, the RPG Group’s tyre manufacturing arm, reported a 145.1% year-on-year jump in consolidated net profit to \u20b9243.85 crore for the January\u2013March quarter (Q4 FY26), compared to \u20b999.49 crore in the […]<\/p>\n","protected":false},"author":11,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615,1365],"tags":[],"ppma_author":[1523],"class_list":{"0":"post-25200","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news","8":"category-business-news"}," _eael_post_view_count":0,"authors":[{"term_id":1523,"user_id":11,"is_guest":0,"slug":"nikki","display_name":"Nikki Lodha","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/ae2e265bd56e0e890c866fbaa55d29846ba20cc5372adf666652268816af117e?s=96&d=mm&r=g","0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/25200","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=25200"}],"version-history":[{"count":4,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/25200\/revisions"}],"predecessor-version":[{"id":25205,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/25200\/revisions\/25205"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/25202"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=25200"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=25200"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=25200"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=25200"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}