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Informist, Wednesday, Jan. 14, 2026

By Prateem Rohanekar

MUMBAI – CEAT Ltd. is expected to post a substantial year-on-year rise in its net profit for the December quarter on the back of a rise in net sales, according to brokerages. Reduced operating expenses due to a fall in domestic natural rubber prices added to the rise in net profit, brokerages noted in their reports.

The tyre manufacturer is likely to post a standalone net profit of INR 2.06 billion for the December quarter, according to the average of estimates from 10 brokerages. This is a rise of over 114% on year, and a nearly 2% sequential rise. The tyre manufacturer is expected to post net sales of INR 39.73 billion, up 21% on year and a sequential rise of over 7%.

The highest estimate for the company's net profit is INR 2.94 billion by Elara Securities (India) Pvt. Ltd. while, the lowest estimate is INR 1.62 billion by Nomura Equity Research. The highest estimate for the company's net sales is INR 40.99 billion by Motilal Oswal Financial Services Ltd., while the lowest is INR 38.13 billion by Elara Securities.

"CEAT is expected to record high-double digit volume growth YoY with ~300bps margin expansion aided by lower NR costs and better scale," Nirmal Bang said in a report.

The positive effect of lower input costs on the company's profit in the reporting quarter were also noted by Motilal Oswal. "All automobile-based tyre companies under our coverage are expected to register healthy margin expansion given the lower input costs," the brokerage said in a report.

The tyre manufacturer is expected to post earnings before interest, tax, depreciation, and amortisation of INR 5.28 billion, according to the average of the estimates. This represents a rise of around 54% on year and of over 4% quarter-on-quarter. The highest estimate for the company's EBITDA is INR 5.55 billion by Emkay Global Financial Services Ltd., while the lowest is INR 5.13 billion by Nirmal Bang.

Of the 11 brokerage reports available with Informist on CEAT, nine have a 'buy' recommendation on the stock with an average target price of INR 4,233 per share. This is nearly 10% higher than the current market price. One brokerage has a 'hold' recommendation with a target price of INR 3,240 per share, while one has a 'sell' rating on the stock with a target price of INR 3,153 per share.

The company is scheduled to detail its earnings on Monday.

At 0951 IST, shares of the company were nearly 1% higher at INR 3883.30. The shares are up nearly 2% since the company announced its September quarter earnings.

Following are the December quarter earnings estimates for CEAT Ltd. from 10 brokerages in descending order of the estimate of net profit, in INR billion:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Avishek Dutta

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