CEAT shares slide 7.43% after Q1 net profit drops 96.4% despite Rs 1,205 crore Nagpur expansion plan
AI Market Summary
CEAT's shares fell over 7% after FY2026 Q1 net profit collapsed 96% despite 22% revenue growth, as higher raw-material costs linked to the West Asia crisis compressed EBITDA margin to 8.5% from 11%. The market discounted the Rs 1,205 crore Nagpur capacity expansion, focusing on near-term profitability pressure and input-cost volatility, weighing on sentiment toward cost-sensitive industrial names.
Impact level
● Low
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▼ Bearish
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CEAT Ltd reported consolidated net profit of Rs 4 crore for FY2026 Q1 (April–June), down 96.4% year on year, even as revenue rose 22.4% to Rs 4,318 crore. EBITDA fell 5.7% and the EBITDA margin narrowed to 8.5% from 11% a year earlier, as the company cited higher raw material costs linked to the West Asia crisis. The stock fell 7.43% on the day, making it one of the biggest decliners in the BSE Smallcap index.
