Tyre share price movement
Shares of tyre makers rallied up to 12 per cent on the BSE in Wednesday’s intra-day trade amid heavy volumes after the sector major Ceat reported healthy performance for the January – March 2026 quarter (Q4FY26).
Share price of Ceat soared 12 per cent to ₹3,924 on the BSE in intra-day trade on the back of 10-fold jump in the average trading volumes. The stock had hit a 52-week high of ₹4,431.60 on October 23, 2025.
JK Tyre rallied 6 per cent to ₹424.80, followed by TVS Srichakra (5 per cent at ₹4,016), Apollo Tyres (4 per cent at ₹439.50), MRF (3 per cent at ₹133,800), Goodyear India (2 per cent at ₹799) and Balkrishna Industries (2 per cent at ₹2,235.75). In comparison, the BSE Sensex was up 0.5 per cent at 77,233.
Ceat Q4 results, declares 350% dividend
Ceat’s standalone net sales for the quarter came in at ₹4,036 crore (up 18 per cent year-on-year (YoY) and 2 per cent quarter-on-quarter (QoQ)). Gross margins for the quarter were down by 20 bps QoQ to 39.7 per cent while EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization) for the quarter stood at ₹587 crore with EBITDA margins at 14.6 per cent, up 50 bps QoQ. Profit after tax (PAT) for the quarter stood at ₹284 crore.
Ceat, an RPG Group company, recommended a dividend of ₹35, i.e. 350 per cent per equity share of face value of ₹10 each fully paid up, for FY2025-26.
In Q4, Ceat delivered high growth in all segments including international business, despite geopolitical tensions, the management said.
“Looking ahead, while there is a momentum on top line, we have short-term challenges on supply chain and costs due to steep increase raw material cost that we intent to mitigate through pricing and strong cost management. We intend to continue expanding our capacities in line with our growth plans,” Arnab Banerjee, MD & CEO, Ceat, said.
ICICI Securities view on Ceat, tyre sector
According to ICICI Securities, flattish gross margin performance came in as a positive surprise amidst inflated commodity prices. The company was also able to improve margins through operating leverage gains and disciplined cost management.
In Q4FY26, it delivered high growth in all segments including international business, despite geopolitical tensions. The company’s financials are not comparable on YoY basis on account of its recent acquisition of Camso tyres.
Looking ahead, while there is a momentum on top line, it does have short-term challenges on supply chain and costs due to steep increase raw material cost that it intends to mitigate through pricing and strong cost management.
“The stock trades at reasonable valuations of ~8x EV/EBITDA and ~16x P/E on TTM basis. Ceat results (limited gross margin erosion) are expected to have a positive rub off on other listed tyre players namely Apollo Tyres and Balkrishna Industries in our coverage universe,” ICICI Securities said in a note =========================================== Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.