CEAT Stock Price Hits Record High After Q2 Results

CEAT Stock Price Jumps 13% to All-Time High

Shares of CEAT Ltd. surged nearly 13% on October 20, hitting a record high after the tyre manufacturer reported strong second-quarter results for FY26. The company delivered 14% year-on-year consolidated revenue growth, supported by an 11% increase in sales volumes and a 3% rise in average selling prices (ASP).

The robust performance led to broad gains across tyre sector stocks, with Apollo Tyres, MRF, and Balkrishna Industries also trading higher between 3% and 13%.

Key Financial Highlights

CEAT reported a sharp improvement in operating performance as its EBITDA exceeded market expectations. The company’s gross margins expanded 415 basis points quarter-on-quarter and 350 basis points year-on-year, aided by a 5% decline in raw material costs.

The management reaffirmed its double-digit revenue growth guidance for FY26, citing steady demand across segments and improving replacement and export markets.

Industry and Business Outlook

CEAT’s outlook for the tyre industry remains positive, with expectations of robust single-digit growth driven by recovery in the passenger vehicle (PV) and two-wheeler (2W) categories. The company is also witnessing market share gains in passenger vehicle OEMs, particularly for tyres above 17-inch rim size.

The integration of Camso, CEAT’s off-highway tyre subsidiary, is progressing as planned, with customer transition and capacity expansion expected to conclude over the next three to six quarters. The company anticipates stronger revenue growth and margin expansion post-integration.

Broader Sector Impact

CEAT’s strong results lifted sentiment across the tyre sector, benefiting leading peers such as MRF, Apollo Tyres, and Balkrishna Industries. The positive trend reflects improving demand, lower raw material prices, and steady export momentum across the industry.

Despite short-term challenges in Camso’s performance, CEAT is positioned to gain from domestic demand recovery, GST rate cuts, and long-term opportunities in the export and off-highway tyre (OHT) segments.