CEAT Share Price Surges 7% Post Q2 FY26 Results, Positive Domestic Demand Outlook

CEAT Ltd saw its shares soar 7.56% to ₹4,015 on the BSE on Monday after posting robust Q2 FY26 results. Driven by improved realisations, softer raw material costs, and strong momentum in OEM and replacement segments, the company also benefits from reduced GST rates and rising premiumisation, signalling sustained domestic growth.

CEAT Strong Q2 FY26 Performance

CEAT delivered an impressive Q2 FY26 performance, with an EBITDA margin of 13.3%. The quarter witnessed a 240 basis points quarter-on-quarter margin expansion, primarily fueled by higher realisations and a 410 bps reduction in raw material costs as a percentage of net sales.

The company experienced robust volume growth across both the original equipment manufacturer (OEM) and replacement equipment (RE) segments. Premiumisation trends in domestic tyres further contributed to the earnings upswing.

CEAT Share Price Performance

Shares of CEAT jumped 7.56% to ₹4,015.15, hitting a 52-week high of ₹4,050 during intra-day trade. The stock opened at ₹3,730 and maintained strong momentum throughout the session, with a volume-weighted average price (VWAP) of ₹3,965.38 and a market capitalisation of ₹16,241.32 crore.

Other tyre makers also witnessed gains of up to 8% on the BSE, reflecting positive sentiment in the sector post the quarterly results announcement.

Positive Demand Drivers

The management highlighted a favourable demand outlook, driven by:

• GST Rate Reduction: Lower goods and service tax on tyres and vehicles is expected to spur domestic demand.
• Rising Rural Sentiment: Strong rural consumption continues to support tyre sales, especially in two-wheeler and tractor segments.
• Premiumisation Trend: Increasing demand for higher-value tyres is boosting margins and volumes.

Internationally, CEAT’s exposure remains limited, minimising the impact of US tariffs on its overall performance.

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Conclusion

CEAT’s Q2 FY26 results have reaffirmed investor confidence, reflecting strong operational execution and positive demand trends. With favourable GST policies, rural consumption growth, and premiumisation supporting margins.

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