CEAT Ltd. is expected to report a sharp rise in March-quarter earnings, with revenue seen climbing 23% and profit nearly doubling, helped by strong domestic demand and the consolidation of Camso, even as higher raw material and freight costs weigh on sequential margin.
The quarter points to solid operating momentum, with Ebitda growth expected to outpace revenue growth and margin widening by nearly two percentage points from a year earlier. Analysts largely attribute the expansion to stronger scale, healthy demand in domestic original equipment and replacement channels, and the benefit of the Camso acquisition, though exports remained weak.
The key issue this quarter is whether CEAT can sustain margin as input costs rise. While year-on-year comparisons remain favourable, brokerages are divided on the sequential margin trend, with some expecting pressure from raw material inflation and freight costs, while others see price hikes and operating leverage helping protect profitability. That will shape views on earnings durability into the new financial year.
CEAT Q4 Bloomberg Estimates (Consolidated, YoY)
- Revenue seen 23% higher at Rs 4,206 crore versus Rs 3,420 crore
- Ebitda seen 44% higher at Rs 558 crore versus Rs 388 crore
- Margin seen at 13.26% versus 11.34%
- Profit seen 94% higher at Rs 193 crore versus Rs 99.49 crore
ALSO READ: Maruti Suzuki Q4 Preview: Profit Seen Up 10% as Volume Growth Lifts Revenue, Margin View Mixed
Here's what analysts expect from CEAT Q4 results
ICICI Securities
- Revenue may rise about 23% YoY on strong domestic volume growth and Camso consolidation
- Domestic volumes seen up about 17% YoY with healthy OEM and replacement demand
- Margin may fall sequentially due to higher raw material costs, freight costs and Camso mix impact
IIFL Capital
- Revenue expected to grow 26% YoY and 4% QoQ, including Camso
- Raw material basket seen lower YoY and broadly flat sequentially
- Margin may improve slightly QoQ on operating leverage
CLSA
- Margin may decline 34 basis points QoQ due to inflation in the raw material basket
Motilal Oswal
- Demand remained healthy across segments during the quarter
- OEM and replacement demand stayed firm, while exports were weak
- Revenue growth seen at 27% on Camso integration
- margin may remain stable QoQ as price hikes offset input cost inflation
- Profit likely to rise sharply YoY due to Camso integration and a low base
ALSO READ: India Auto Q4 Preview: Strong Volume Growth Seen, Margin Outlook Clouds FY27
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
