CEAT Shares Surge 12% Following 145% Profit Increase in Q4 FY26
CEAT shares rally 12% after Q4 net profit soars 145% to Rs 244 crore. Should you buy?
The Economic TimesImage: The Economic Times
CEAT Ltd. shares rose 12% after reporting a 145% increase in consolidated net profit to ₹243.85 crore for Q4 FY26. The company's revenue also grew by 23% year-on-year, reaching ₹4,219 crore. Analysts maintain a 'Buy' rating, citing strong growth across all segments despite supply chain challenges.
- 01CEAT's net profit surged by 145% to ₹243.85 crore in Q4 FY26.
- 02Revenue from operations rose by 23% year-on-year to ₹4,219 crore.
- 03The company announced a dividend of ₹35 per equity share, up from ₹30 in previous years.
- 04Analysts at Motilal Oswal maintain a 'Buy' rating on CEAT shares.
- 05CEAT's market capitalization stands at ₹15,059 crore.
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CEAT Ltd. experienced a 12% rise in its share price following the announcement of a 145% increase in consolidated net profit, reaching ₹243.85 crore for the fourth quarter of FY26, compared to ₹99.5 crore in the same quarter of the previous year. The company's revenue from operations also saw a significant increase of 23%, amounting to ₹4,219 crore. Total expenses rose by over 19% to nearly ₹3,895 crore, while the EBITDA margin was reported at 14.18%. CEAT's CEO, Arnab Banerjee, highlighted strong growth across all segments, including international business, despite facing supply chain challenges and rising raw material costs. The company plans to mitigate these challenges through effective pricing and cost management strategies. Additionally, CEAT announced a dividend of ₹35 per equity share, subject to shareholder approval, which is an increase from the ₹30 dividend paid in previous years. Analysts from Motilal Oswal have maintained a 'Buy' rating on CEAT shares, noting the company's robust growth and improved EBITDA margin. Currently, CEAT's market capitalization stands at ₹15,059 crore, with the stock having gained 140% over three years.
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The strong financial performance of CEAT could lead to increased investor confidence, potentially boosting the stock market and impacting the tyre industry positively.
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