Ceat Ltd (CEATLTD) Q2FY27 Concall Summary - Sep-2026 Qtr
Key Takeaways
- Management will continue frequent but small price hikes in Q3 to bridge a 7-8% gross margin gap and offset another anticipated 3% raw material cost increase.
- The CAMSO business is on track to be EBITDA positive in H2 FY27, with full integration benefits expected from FY28 after a capex of INR 100-150 crores.
- Management guides for potential demand moderation in Q3, with MHCV replacement growing mid-single-digits and passenger car replacement growing low-single-digits on a high base.
Performance Overview
- Ceat Ltd posted its highest-ever quarterly revenue, driven by strong volume and price growth across segments.
- Significant margin pressure continued due to sharp raw material cost inflation, which increased 8-9% in Q2 and is expected to rise another 3% in Q3.
- The company maintained leadership in the EV segment, with a 25% market share in OEM PCUV and over 30% in two-wheelers.
- International business showed strong recovery, with saliency reaching 24% on a consolidated basis, supported by the growing OHT segment.
- Substantial progress was made in the CAMSO business integration, with 85% of customers transitioned to Ceat's fold.
Financial Metrics
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Operating Performance / Business Segments
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Key Discussions & Insights
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Outlook and Guidance
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Challenges / Concerns
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Industry / Competitive Landscape
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Overall Summary
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Tone & Disclosure
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