CEAT shares tumble over 9% after Q1 FY27 profit crash
CEAT's stock dropped over 9% on Friday, hitting a low of ₹3,471.10 on the NSE.
The sharp fall came right after the tire maker revealed its net profit for the first quarter of fiscal 2027 crashed to just ₹4 crore, even though revenue jumped 22.4%.
By midmorning, shares were still trading well below yesterday's close.
Revenue ₹4,318 cr profit down 96.4%
While CEAT pulled in ₹4,318 crore in revenue this quarter (up from ₹3,529 crore last year), rising raw material prices and higher finance costs slashed profits by 96.4%.
It's a tough quarter for margins.
Board approves ₹1,205 cr manufacturing expansion
Even with these financial setbacks, CEAT's board approved a fresh ₹1,205 crore investment to expand manufacturing.
The plan? Boost daily production by 53,000 two-wheeler tires by fiscal 2031, showing they're betting on long-term growth despite short-term bumps.