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Ceat Q1FY26: Profit declines 27% on higher costs, revenue rises 10.5%
The decline in net profit was primarily attributed to higher marketing expenses and an increase in raw material costs.
Sequentially, both net profit and revenue saw an increase of 13 per cent and 3 per cent, respectively.
Arnab Banerjee, Managing Director and Chief Executive Officer, Ceat, stated, 'Looking ahead, we are well poised to ride the premiumisation and electrification trend in the domestic market, and renew our growth in international markets with stability in the geopolitical situation.'
Kumar Subbiah, Chief Financial Officer, Ceat, said, 'Q1 saw strong growth and high-capacity utilisation at all our manufacturing facilities. This growth came on the back of increase in demand from OEM and replacement segments. As Q1 is a marketing-heavy quarter with significant marketing costs associated with IPL, operational margins saw a slight dip.'
The results came after market hours on Thursday. Shares of the company closed at Rs 3,855.2, down 0.49 per cent.
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