CEAT slips 5.1% as Q2 profit falls 39.8% YoY

CEAT fell up to 5.1% to a four-month low after Q2 profit dropped 39.8%, with Rs 3,060 to 3,000 as key support. CEAT Limited [

] fell as much as 5.1% in morning trade on 15 October 2026. It hit a four-month low and ended a four-day winning streak. The trigger was Q2 results. Consolidated profit fell 39.8% year on year to Rs 112 crore from Rs 186 crore. Revenue grew 26.2% to Rs 4,762 crore from Rs 3,773 crore. An exceptional loss of Rs 13 crore, a one-time cost of voluntary retirement schemes, also hit the bottom line. Sales grew while profit fell. That suggests costs rose faster than revenue. The Rs 13 crore charge explains only a small part of the Rs 74 crore profit decline, so the market is looking at margins. My view is cautious. On the daily chart, the stock has made lower highs since the peak above Rs 4,400 and now sits near its weakest level in four months. I am watching the Rs 3,060 to Rs 3,000 support zone. A close below it would weaken the setup further. A recovery above Rs 3,435 resistance, or signs of margin repair in the next quarter, would change my mind. I stay cautious while the price trades below Rs 3,435. Disclosure: I do not hold any position in this stock. This is not a recommendation to buy or sell. Investments in the securities market are subject to market risks, so please read all related documents carefully and consult your advisor before investing.