CEAT share price jumps nearly 9% post Q4 numbers; other tyre stocks rally too

Shares of tyre companies soared high on Wednesday, April 30, during the intraday period after CEAT Limited posted its March quarter earnings.

However, investors remained confident about the firm on strong commentary from the management.

Commenting on the results as well as the outlook of the business, Arnab Banerjee, MD & CEO, CEAT Limited, said, “It was a very satisfying top-line performance for the quarter and overall for the year as we managed to deliver a double-digit growth across all key categories and business verticals. We crossed an important milestone of crossing ₹13,000 crores of revenue during the year.”

The company’s revenue from operations rose to ₹3,421 crore in the fourth quarter compared to ₹2,992 crore in the year-ago period.

"Our operating margins improved in Q4 by over 120 bps, largely driven by a favourable revenue mix and the result of strong cost controls across the value chain," Ceat CFO Kumar Subbiah said.

The company incurred capex of ₹946 crore during the year largely for capacity additions that would prepare it well to deliver growth plans in FY26, he added.

"During the quarter, we incurred ₹37 crore towards voluntary separation of employees in one of our high-cost factories as part of our continuous effort to keep our manufacturing units cost competitive," Subbiah said.

The company said its board has approved a dividend of ₹30 (300%) per share for FY24-25.

This led to the jump in its Apollo Tyres share price.

This month, Asia’s leading capital markets and investment firm CLSA released a report on the tyre sector.

A key insight from the report is the expected shift in market composition. While truck and bus tyres (T&B) currently account for 50% of the market, CLSA foresees a gradual transition towards high-margin passenger car radials, fuelled by India's growing passenger car base. This change is likely to lift industry margins and align players with global profitability benchmarks, CLSA noted.