CEAT Shares Slide 9% on Weak Q1 Profit

CEAT shares fell 9% on Friday, 17 July 2026, hitting a day low of Rs 3,471.10 after weak Q1 FY27 profit despite a 22% jump in revenue.

CEAT’s net profit for the quarter ended June 2026 dropped 96% to around Rs 4 crore, down from Rs 112 crore a year earlier. Revenue climbed 22% to Rs 4,318 crore.

Profit and sales moved in opposite directions, and that mismatch is exactly what rattled the market this morning. The pressure came from costs, not demand.

Raw material prices, especially rubber and crude derivatives, rose sharply through the quarter and squeezed margins hard. Operating profit fell nearly 6% to Rs 365 crore, while the operating margin slipped to 8.5% from 11% a year ago.

Gross margin also slid by around 300 basis points. Managing director and CEO Arnab Banerjee called it a ‘challenging quarter’ and pointed to the West Asia crisis for the spike in input costs.

He told that raw material prices could rise another 8 to 10% in the September quarter, with fresh price hikes planned for July and August, and said the company is watching the situation closely.

Margins, he said, should stay near current levels before improving in the second half of FY27. The company is not standing still despite the rough quarter.

CEAT’s board approved a Rs 1,205 crore expansion at its Nagpur plant to add 53,000 two-wheeler tyres a day in capacity, with the project expected to be completed by FY31.

The RPG group firm also expects to close its Camso acquisition by September 2026, with integration work starting in the second half of the year. The stock has had a rough week.

CEAT has fallen more than 8% in the past week and is down 6.4% since the start of the year, though it remains sharply higher than where it traded three years ago.

As of 11:22 am, CEAT shares were trading at Rs 3,535.60 on the NSE, down 7.68% from the previous close of Rs 3,829.60.

It’s trading well below its 52-week high of Rs 4,438, hit in October 2025, but still comfortably above the 52-week low of Rs 3,000.50 from August 2025.

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