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CEAT shares drop after Q1 standalone net profit falls 27% YoY
The tyre maker posted ₹98 crore standalone net profit for June quarter, down from ₹135 crore, even as revenue rose 18% and the board approved a ₹1,205-crore two-wheeler capacity expansion.
CEAT shares fell more than 9% on 17 July after the company reported a 27% year-on-year decline in standalone net profit for the June quarter (Q1 FY27), even though revenue grew.
CEAT said standalone net profit came in at ₹98 crore, down from ₹135 crore a year earlier. Revenue from operations rose 18% year-on-year to about ₹4,163 crore, supported by demand across its segments.
In parallel with the results, CEAT’s board approved a ₹1,205-crore capital expenditure plan to expand manufacturing capacity in the two-wheeler tyre segment. The company aims to increase production by 53,000 tyres per day in phases by FY31, raising total daily capacity from 80,000 tyres to 1.33 lakh tyres, and said the investment will be funded through internal accruals and debt.
LiveMint Markets also noted that the company’s facilities are running at about 95% capacity utilisation, and that Motilal Oswal Financial Services said earnings were below expectations due to sharply higher interest costs, with consolidated profit at ₹4 crore versus its estimate of ₹50.2 crore.