CEATLTD
Large CapCEAT Limited
Auto
CEAT Limited is a leading Indian tyre manufacturer, ranked among the top 10 global brands across two platforms. It holds the #1 position in India's 2W & 4W tyre aftermarket segments and has a 15% share in Commercial Radials aftermarket. The company is focused on premiumization, electrification, and international expansion.
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 is neutral, and recent execution is consistent.
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 31 Mar 2026
Excellent · 90/100Rev +23% YoY · PAT +146% YoY · margin expansion · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,219 Cr | +23.3% | +1.5% |
| EBITDA | ₹593 Cr | +52.8% | +5.3% |
| Operating margin | 14.0% | +300 bps | +0 bps |
| PAT | ₹244 Cr | +146.5% | +57.4% |
| PAT margin | 5.8% | +289 bps | +205 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
CEAT reports FY26 revenue of Rs. 15,678 Cr with 13.2% EBITDA, driven by strong growth and strategic initiatives. Debt ratios remain healthy at 1.46x Debt/EBITDA and 0.60x Debt/Equity.
CEAT demonstrates robust financial performance in FY26 with strong revenue growth and healthy profitability. Strategic moves like the CAMSO acquisition, focus on premiumization, and EV segment penetration position the company for continued growth, aligning with its vision for industry-leading profitability by 2031.
CAMSO Acquisition & Integration
Acquired $150 Mn Compact Construction business in Dec'24; full portfolio unlocks by 2028, targeting $1.0 Bn revenue potential.
Electrification
Supplier to all major EV OEMs in India, with 31% and 19% share of business in specific EV categories.
Premiumization
Achieved #2 position in India for PCUV 17"+ in Q4FY26, up from #5 in Q1FY25, and offers Premium Motorcycle TBR.
Digital Transformation & AI
Implementing AI/GenAI tools like 'Chanakya' for procurement (5-7% cost savings), Intelligent Mixing Control (20% faster cycle time), and 'Ruby' for R&D (30% faster knowledge access).
CAMSO Manufacturing Control
Mixer and calendar to be delivered and industrialized by Apr 2027, achieving 100% manufacturing control for CAMSO.
Strong Aftermarket Position
#1 in 2W & 4W Tyre Segments in India Aftermarket provides a stable base.
Premium Segment Growth
Improved ranking to #2 in Premium PCUV 17"+ during Q4FY26 indicates strong traction in higher-value segments.
Cost Optimization through Digitalization
AI-driven initiatives like 'Chanakya' for procurement and Intelligent Mixing Control are expected to yield cost savings and efficiency gains.
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.
The presentation primarily highlights FY26 results and compares them to previous fiscal years (FY22-FY25) to demonstrate long-term trends and CAGRs, making YoY the most relevant comparison basis.
FY26 Revenue
Rs. 15,678 Cr
5-yr Revenue CAGR
15.6%
FY26 EBITDA
13.2%
Debt / EBITDA
1.46x
Vision 2031
Aims for 'Industry Leading Profitability' by 2031.
Growth Ambition
Management intends to 'Grow The Fastest FY26 – FY31'.
Capital Allocation Strategy
Approach includes 'Bite Size Capex', 'Maintain Double Digit ROCE', and 'Healthy Leverage Ratios'.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Revenue Growth vs. Peers | 13.1% CAGR (FY22-FY26), fastest among peers. | Sustained outperformance in revenue growth compared to competitors. |
| EBITDA Margin | 13.2% in FY26. | Progress towards 'Industry Leading Profitability' and further margin expansion. |
| CAMSO Integration Milestones | Production takeover Sep 2025, Sales takeover Oct 2026, 100% manufacturing control Apr 2027, Brand transfer Sep 2028. | Timely achievement of integration steps and realization of $1.0 Bn revenue potential. |
| Premium PCUV 17"+ Market Share | #2 in Q4FY26. | Continued market share gains and leadership in premium segments. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
45NeutralSMA20 -12.1% / mo · near 52W low
Technical chart
CEATLTDweekly · 3Y+9.5%Technical trend read
NeutralTrend is undirectional — long-term trend unclear. RSI 40.
- SMA20 falling (~13.7% over last month) — short-term momentum negative.
- RSI(14) at 40 — sideways, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- Within 5% of 52-week low — testing support.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
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 54.0%.
- Growth contributes 14/25 to the score.
Main drags
- Cash flow is weaker at 4/10; verify the latest quarterly trend.
- Valuation is weaker at 14/30; verify the latest quarterly trend.
- Balance sheet is weaker at 7/15; 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: +0 points.
Factor attribution
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 70th percentile of the scored universe and 56th 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: 56th pctile, median 71 · Large: 47th pctile, median 74
225 documents indexed, 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.
Intrinsic value
Fundamentals
Valuation
- P/E
- 16.80
- P/B
- 2.49
- EV/EBITDA
- 7.29
- Market Cap
- 12569.00Cr
Profitability
- ROE
- 15.90%
- ROCE
- 18.70%
- ROA
- 5.01%
- Dividend Y
- 0.97%
Growth (CAGR)
- Revenue 5Y
- 16.00%
- EPS 5Y
- 10.00%
- Revenue 3Y
- 11.00%
- EPS 3Y
- 53.00%
Balance Sheet
- Debt/Equity
- 0.65
- Interest Coverage
- 4.11×
- Altman Z
- 2.96
- Book Value
- 1247.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 7/5
- OCF
- 1786.00 Cr
- EPS TTM
- 172.56
Shareholding
- Promoter Hold
- 47.29%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 7%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%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.