CATL Q3 Profit Rises 14.5% to 21.25B Yuan as Revenue Jumps 58.6%

Net cash from operating activities fell 23.60% to 61.63 billion yuan. Accounts receivable rose 47.78% from the end of last year to 112.91 billion yuan, and inventories rose 53.15% to 144.77 billion yuan. CATL attributed both increases to business expansion. Research and development spending rose 22.89% to 18.52 billion yuan.

Why it matters for cell supply

CATL is the world's largest EV battery maker. SNE Research data cited by CnEVPost put its global EV battery installations at 333.0 GWh in the first eight months, up 25.2%, for a 39.4% share against 15.1% for second-placed BYD. In September it held 40.92% of China's power battery installations, at 35.49 GWh.

The same data shows where volume is heading. China's energy storage battery sales rose 104.4% year on year to 73.5 GWh in September, or 33.0% of combined power and storage battery sales, according to the China Automotive Battery Innovation Alliance. When the largest cell maker grows revenue at 58.58% but profit at 14.54%, buyers of utility-scale storage and EV packs should expect cell pricing and supply terms to stay under pressure from both cost and policy.

CATL's 2027 case

In an investor relations filing dated October 20, reported by Gasgoo, CATL said demand in 2027 remains promising. It argued that although China's passenger car sales dipped in 2026, the electrification rate and the average battery capacity per vehicle are both climbing. Domestic power battery installations rose 17% in the first nine months, while sales including exports rose 38%, which CATL tied largely to larger packs. It put the average capacity of new energy vehicles at 69.5 kWh, up 32%.

Gasgoo also described policy pressure. The value-added tax rebate on battery exports was cut from 9% to 6% on April 1, 2026, and is due to be eliminated on January 1, 2027. CATL said it is talking with customers about sharing that burden. Gasgoo reported that, as of October 21, CATL shares had halved from their peak and that several brokerages had trimmed 2027 profit forecasts. CATL's recent product push into heavy trucks, covered in Voltgrid's report on its swap system, is one place it is trying to add volume.

The quarterly figures come from CATL's own release as relayed by CnEVPost and TechNode. The gross margin is CnEVPost's calculation from revenue and cost of sales, not a figure CATL stated. Whether the export VAT rebate cut can be passed on to customers is what CATL has not yet settled.