Home / Results / CEAT Q4 Net Profit Down 8.5% YoY But Stock Surges 8% On Positive FY26 Guidence

CEAT Q4 Net Profit Down 8.5% YoY But Stock Surges 8% On Positive FY26 Guidence

2025-04-30 Ravi Mehta

India’s one of trusted tyre maker CEAT Ltd. rolled out its Q4 FY24 results Yesterday, revealing a performance that blends strong top-line growth with some pressure on margins. While profit dipped slightly, the company’s positive guidance for FY26 has charged up investor sentiment. Let’s take a closer look at the key numbers and what the road ahead looks like for CEAT.

Quarter 4 FY24 Results at a Glance:

Net Profit: ₹99.5 Cr

(Down 8.4% YoY from ₹108.6 Cr)

Revenue: ₹3,420.6 Cr

(Up 14.3% YoY from ₹2,991.9 Cr)

EBITDA: ₹388 Cr

(Marginally down 0.9% from ₹391.7 Cr)

EBITDA Margin: 11.3%

(vs 13.1% YoY – reflects cost pressure)

Dividend: ₹30 per share declared

Management Commentary (via CNBC-TV18):

While speaking with CNBC-TV18, CEAT's management CFO Kumar Subbiah remained upbeat about the company's long-term prospects. They shared that:

CEAT is targeting double-digit revenue growth in FY26, with strong momentum expected across segments.
Raw material (RM) costs, a major margin driver, are projected to ease from Q2FY26. For now, RM prices are expected to sustain at Q4 levels into Q1FY26, with a possibility of a minor correction (~1%).
If RM prices remain stable, margins could improve.
Commodity prices are also seeing some corrections, adding further relief.
CEAT aims to increase export contribution to 25% over the next 2 years, up from the current 20%. Currently, the US contributes less than 5% to revenue.
The company continues to guide for double-digit export growth.
If the company wants to restore gross margins to 40–41%, a price hike may be necessary in the near term.

Following the guidance update, CEAT shares surged 7%, Trading at ₹3,284.90 on Wednesday, April 30.

Meanwhile, broader markets remained mostly flat:

Nifty 50 was trading at 23,431, up 3 points

Sensex stood at 80,318.72, up 17 points

This reflects selective buying interest, with CEAT clearly standing out among the gainers.

Despite a minor drop in profits, CEAT’s strong revenue growth, bold capex plans, and optimistic FY26 guidance make it a stock to watch. The management’s confidence in demand recovery and easing input costs add strength to its long-term growth narrative.

Disclaimer:

The information provided in this blog is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any securities.