CEAT Q1FY26: Revenue up 10.5% YoY; IPL marketing weighs on margins

The company has posted a net profit of Rs 112 crore

by e4m Staff
Published: Jul 18, 2025 10:35 AM | 2 min read

CEAT Limited, an RPG Group company, has reported its unaudited financial results for the quarter ended June 30, 2025. The first quarter marked a marketing-heavy period for the tyre manufacturer, with significant spends associated with the Indian Premier League (IPL) impacting operational margins.

On a consolidated basis, CEAT posted revenues of Rs 3,529.4 crore, registering a year-on-year growth of 10.5%. The company reported an EBITDA margin of 10.9%, while net profit stood at Rs 112.3 crore.

Arnab Banerjee, MD & CEO, CEAT Limited, attributed the company’s performance to strong demand in both OEM and replacement segments. “We continue to grow at a strong pace with double-digit growth in top-line. Looking ahead, we are well poised to ride the premiumisation and electrification trend in the domestic market, and renew our growth in international markets with stability in the geopolitical situation,” he said.

On a standalone basis, CEAT clocked revenue of Rs. 3,520.7 crore, up 11.1% YoY. EBITDA margin came in at 11.1%, while net profit stood at Rs. 135.4 crore.

Commenting on the quarterly performance, Kumar Subbiah, CFO, CEAT Limited, said, “Q1 saw strong growth and high-capacity utilisation at all our manufacturing facilities. This growth came on the back of increased demand from OEM and replacement segments. However, being a marketing-heavy quarter with substantial advertising and promotional spends during the IPL season, operational margins saw a slight dip.”

He added that efficient cash flow management enabled the company to reduce gross debt by Rs 100 crore during the quarter.