CEAT Limited (CEATLTD)
Large CapAuto stocks · Large cap · NSE
CEAT Limited is an Indian tyre manufacturer, part of the RPG Group. It reported Rs. 15,678 Cr revenue and 13.2% EBITDA in FY26. The company has 12k+ employees, 50+ OEM relationships, and 61k+ touchpoints, with Deming Grand and Light House certified factories.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Bad · 0/100PAT -96% YoY · margin compression · Rev +22% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,318 Cr | +22.4% | +2.4% |
| EBITDA | ₹365 Cr | -5.7% | -38.4% |
| Operating margin | 8.4% | -252 bps | -561 bps |
| PAT | ₹4 Cr | -96.4% | -98.4% |
| PAT margin | 0.1% | -308 bps | -569 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Q1 FY27 revenue grew 22.3% YoY to Rs. 4,318 Cr, but EBITDA margin contracted significantly by 562 bps QoQ and 238 bps YoY to 8.6% due to high-teens sequential increase in raw material costs. PAT plunged 98.3% QoQ and 96.3% YoY to Rs. 4 Cr.
Despite healthy YoY volume growth and price hikes, Q1 FY27 profitability was severely impacted by surging raw material costs. The sharp decline in EBITDA and PAT raises concerns about the company's ability to pass on costs or manage margins in a volatile input environment. Debt metrics also deteriorated sequentially.
Standalone Revenue by Segment (FY26)
Latest issuer-disclosed distribution across 3 reported categories.
Healthy Volume Growth
Healthy YoY volume growth across segments; QoQ volume growth led by Replacement segment.
International Business Recovery
International Business continues to recover well, and was the fastest growing segment on YoY basis.
Price Hikes
Realization was higher on both sequential and YoY basis, primarily led by price hikes taken in domestic as well as international markets.
Raw Material Cost Inflation
RM basket cost increased by high-teens on sequential basis. Gross margin contracted by 575 bps QoQ and 287 bps YoY, primarily driven by RMC pressure.
Raw Material Price Volatility
RM basket cost increased by high-teens on sequential basis, leading to significant gross margin contraction.
Profitability Erosion
EBITDA margin contracted by 562 bps QoQ and 238 bps YoY to 8.6%, resulting in a 98.3% QoQ and 96.3% YoY drop in PAT.
Increasing Debt Metrics
D/E ratio increased to 0.65x from 0.60x QoQ, and D/EBITDA ratio rose to 1.58x from 1.46x QoQ.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial for assessing overall growth and seasonal trends in the tyre industry. QoQ comparison is vital to track sequential momentum, the impact of raw material cost changes, and the effectiveness of price hikes.
Volume Growth
Healthy YoY volume growth across segments; QoQ volume growth led by Replacement segment.
Realization
Realization was higher on both sequential and YoY basis, primarily led by price hikes taken in domestic as well as international markets.
Exports
International Business continues to recover well, and was the fastest growing segment on YoY basis.
Raw-material pass-through
RM basket cost increased by high-teens on sequential basis. Gross margin contracted by 575 bps QoQ and 287 bps YoY, primarily driven by RMC pressure.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Raw Material Cost Trend | High-teens sequential increase | Stabilization or decline in raw material prices and effective cost pass-through. |
| EBITDA Margin | 8.6% (Q1 FY27) | Margin recovery towards previous levels (Q4 FY26: 14.2%, Q1 FY26: 10.9%). |
| Debt/EBITDA Ratio | 1.58x (Q1 FY27) | Improvement in debt leverage ratios, especially given increased capex and working capital. |
| International Business Growth | Fastest growing segment on YoY basis | Sustained recovery and growth momentum in international markets. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
30Bearishfull bear SMA stack · MACD − · sector -3.3pp vs Nifty (3M)
Technical chart
CEATLTDdaily · 1Y · AUTO-2.3%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 34.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- SMA20 roughly flat — short-term momentum stalled.
- RSI(14) at 34 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 25% off 52W high · 9% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is within 5.1% of the 30-week proxy.
- The 30-week proxy changed -0.8% over 20 sessions.
- The moving-average structure does not confirm Stage 2 or Stage 4.
Valuation & score drivers
U-Score 53 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 53 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 26.8%.
- Quality contributes 12/20 to the score.
Main drags
- Valuation is weaker at 10/30; verify the latest quarterly trend.
- Cash flow is weaker at 4/10; verify the latest quarterly trend.
- Balance sheet is weaker at 8/15; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +4 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 66th percentile of the scored universe and 44th percentile within Auto. No major sub-score weakness stands out.
Healthy Trust Lite: Promoter pledge is zero. Key concern: 1 of the latest 4 quarters had PAT decline worse than 25% YoY.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Auto: 44th pctile, median 74 · Large: 43rd pctile, median 73
225 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸7 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸3/4 latest quarters had positive YoY PAT growth.
Trust risks
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 21.20
- P/B
- 2.67
- EV/EBITDA
- 7.59
- Market Cap
- 13483.00Cr
Profitability
- ROE
- 16.10%
- ROCE
- 19.20%
- ROA
- 4.24%
- Dividend Y
- 1.05%
Growth (CAGR)
- Revenue 5Y
- 16.00%
- EPS 5Y
- 10.00%
- Revenue 3Y
- 11.00%
- EPS 3Y
- 54.00%
Balance Sheet
- Debt/Equity
- 0.65
- Interest Coverage
- 3.49×
- Altman Z
- 3.08
- Book Value
- 1247.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 7/5
- OCF
- 1786.00 Cr
- EPS TTM
- 145.79
Shareholding
- Promoter Hold
- 47.29%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 20%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
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Peers
Business-comparable peers in Auto — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.