This article first appeared on GuruFocus .
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Consolidated Net Revenue:INR 4,157 crore, 26% year-on-year growth.
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Stand-alone Revenue:INR 3,957 crore, 20.1% year-on-year growth, 6.91% quarter-on-quarter growth.
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Stand-alone EBITDA:INR 556 crore, 14.8% margin, 39 basis point improvement quarter-on-quarter.
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Consolidated EBITDA:INR 568 crore, 13.7% margin.
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Stand-alone Gross Margin:39.9%, 109 basis points contraction sequentially.
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Stand-alone Net Profit:INR 191.6 crore.
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Consolidated Profit After Tax:INR 155.4 crore.
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Volume Growth:20.9% year-on-year.
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Replacement Segment Growth:Mid-teens.
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OEM and International Business Growth:Over 20%.
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CapEx:INR 254 crore spent in Q3; INR 1,314 crore approved for Chennai plant expansion.
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Debt-to-EBITDA Ratio:1.52 times on a stand-alone basis.
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Debt-to-Equity Ratio:Improved from 0.65 to 0.63.
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Employee Costs:Increased to INR 252 crore from INR 244 crore in the previous quarter.
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Interest Cost:Increased by INR 17.88 crore due to higher average debt level.
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Provision for New Labor Codes:INR 57.81 crore.
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Release Date: January 20, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Ceat Ltd ( BOM:500878 ) reported a strong Q3 FY26 with a 20% year-on-year growth on a stand-alone basis.
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The company achieved a milestone by crossing INR 4,000 crore in revenue for the first time in a quarter.
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International business grew in the 20s due to improved channel access in several geographies.
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The company maintained a strong market position in the OEM PCUV EV segment with a 30% plus share.
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Ceat Ltd ( BOM:500878 ) is committed to sustainability, partnering with CleanMax to develop renewable energy projects.
Negative Points
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The company's stand-alone gross margin contracted by about 109 basis points quarter-on-quarter due to increased input costs.
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US tariff headwinds persisted, impacting growth in the international business segment.
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The transition of the Camso business incurred onetime costs, affecting margins.
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Natural rubber prices and INR depreciation are expected to impact raw material costs by 1% to 1.5% in the coming quarters.
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Sri Lankan operations faced challenges due to Cyclone Ditwah and intensified local competition.
Q & A Highlights
Q: Can you confirm the expected impact of raw material cost increases due to rising natural rubber prices and INR depreciation? A: Yes, we anticipate a 100 to 150 basis points impact on raw material costs due to these factors. This could materialize over the next two to three quarters. We have some visibility and cover in advance, but the rupee depreciation and international rubber price movements will affect costs in due course.
Q: What is the expected ongoing impact of the new labor codes on financials? A: The INR 58 crore provision is mainly for past periods. Going forward, the impact will be minimal, estimated at less than INR 2 crore per quarter.
Q: How did Camso perform financially in Q3, and what are the expectations for its margins? A: Camso's Q3 revenue was approximately USD 20 million (INR 182-183 crore), with operating profit margins in the low double digits. We expect margins to improve as transition costs decrease and operations stabilize.
Q: How is the demand in the US market, and have price hikes been implemented to offset tariffs? A: Necessary price increases have been implemented to offset tariffs. Demand remains cyclical, but it is tracking as per expectations.
Q: What is the outlook for the replacement segment in the domestic market post-GST cut? A: There was some channel filling post-GST cut, but genuine demand improvement is evident, especially in farm and 2-wheeler tires. We expect high single-digit growth in the replacement segment through FY27.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
