India’s leading tyremaker CEAT Ltd on Tuesday reported a consolidated net profit of Rs 243.80 crore in Q4FY26 compared to Rs 98.71 crore during the same period FY25, a rise of 145%. The growth is driven by steady prices of raw material, following the Q1, aiding the company in sustaining high gross margin and GST reduction helping it to gain momentum.
The Mumbai-based tyre manufacturer’s operating revenue grew from Rs 3,420.62 crore in Q4FY25 to Rs4,218.89 crore in the last quarter. Kumar Subbiah, CFO of CEAT Ltd, said, “Our International business in the last two quarters grew at 20%.” The huge order pipeline has helped the company to compensate for the West Asia crisis. “Exports to West Asia has impacted starting March. West Asia demand will have impact in the future until the situation normalised. We didn’t have problem in fulfilling our orders for other geographies in March and April,” he added. The company generates 20-25% of its revenue from the West Asia region, Europe brings in 30%, US 3-4%, South East Asia, including South Asia, is 16-18%. The company has been able to divert its product to other geographies in order to compensate for its inability to export to the West Asia.”
The company is expanding its Chennai plant capacity from 24,000 tyres per day to 30,000 tyres and eventually 40,000 tyres by September 2027. The company is planning to invest over Rs 4,500 crore over a period of time for this expansion. This expansion will focus on producing both EV and IC engine vehicles. “For now, EV tyres are less than 5% of revenue share. The share is small because it is only for OEMs that we are manufacturing. The replacement orders have not come yet.”
Speaking about the investment in other manufacturing plants, Subbiah said, “We are expanding our two-wheeler tyre producing capacity from 80,000 to 1 lakh per day at Nagpur plant; truck and bus radial tyres from 1,500 to 2,000 by the end of Q2FY27 and 3,000 by Q1 FY28.” The company is planning for capex of more than Rs 1,070 crore in the current financial year. The Board of Directors has approved a dividend of Rs 35, i.e. 350% per equity share for FY25-26. This is subject to approval of shareholders.