Q2 2026 CEAT Ltd Earnings Call Transcript
Key Points
- Ceat Ltd (BOM:500878) reported a 12.2% year-over-year growth on a standalone basis for Q2 FY26.
- The company achieved a significant expansion in standalone gross margin by over 400 basis points quarter-on-quarter.
- International business showed strong performance with high double-digit growth, particularly in Europe, Africa, and Latin America.
- The company completed the acquisition of the CASA business, enhancing its position in the premium OSD segment.
- Ceat Ltd (BOM:500878) maintained a comfortable debt-to-EBITDA ratio of 1.8 and a debt-to-equity ratio of 0.64, indicating strong financial health.
- The US market faced challenges due to tariff uncertainties, impacting sales of OHD to the US, which slowed down to practically 0% by the end of the quarter.
- Replacement market growth was subdued in September due to trade down-stocking and deferred purchases in anticipation of the GST announcement.
- The passenger car segment showed concerns around growth, with expectations of 0 to very low single-digit growth.
- The company is facing a 50% punitive tariff on OSD exports to the US, affecting profitability.
- Capacity utilization for the newly acquired CASA business is currently at 50%, indicating underutilization.
Ladies and gentlemen, good day and welcome to CEAT's earning conference call hosted by Emkay Global Financial Services Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Chirag Jain from Emkay Global Financial Services Limited. Thank you and over to you, sir.
Good afternoon, everyone. On behalf of Emkay Global, I would like to welcome you all to the 2Q FY26 earnings conference call of CEAT Limited.
Today, we have with us from the management team Mr. Arnab Banerjee, MD and CEO; and Mr. Kumar Subbiah, CFO. We will start the call with opening comments from the management team, post which we will open the floor for the Q&A session.
Over to you, sir.
Good afternoon everybody. Welcome to CSQ2.
FY26 earnings call. I shall start the discussion and then hand over to
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
