Shares of CEAT Ltd. fell around 4% on Thursday, Oct. 15, after the tyre maker reported a 39.8% year-on-year decline in its net profit for the second quarter of fiscal 2027.
The stock was trading at Rs 3,238.5 apiece on the NSE, slipping over 3.6% intraday today, compared to its previous close at Rs 3,357.9. Meanwhile, Nifty 50 gained over 1% today.
The company reported a decline in profitability despite a strong increase in revenue during the September quarter, while operating margins also contracted.
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CEAT Q2 Results
CEAT's net profit fell to Rs 112 crore in the September quarter from Rs 186 crore in the year-ago period, despite revenue from operations rising 26.2% to Rs 4,762 crore from Rs 3,773 crore.
Earnings before interest, taxes, depreciation, and amortisation (Ebitda) declined 9.1% to Rs 457 crore from Rs 503 crore a year earlier. The Ebitda margin contracted to 9.6% from 13.3% in the corresponding quarter last year.
The results reflect the divergence between revenue growth and profitability, with the company's earnings declining despite higher sales.
Separately, CEAT appointed Sumeet Narang as an Additional Director in the capacity of Non-Executive, Independent Director for a five-year term from Oct. 14, 2026, to Oct. 13, 2031, subject to shareholder approval.
CEAT Share Price Performance
The tyre maker's stock has been under pressure for over a year now. It has declined over 9% during the period.
Currently, it is trading at a price-to-earnings multiple of 26.36 times, with a market capital of Rs 13,166 crore.
Investors will track the company's ability to improve margins and restore profit growth amid rising revenue, along with its performance in the coming quarters.
Also Read: CEAT Q2 Results: Net Profit Slumps 40% To Rs 112 Crore, Margin Contracts
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