Representation Photo

CEAT Ltd reported strong growth in the December quarter, supported by higher volumes, improving operating margins and continued investment in capacity expansion, while flagging near-term pressure from currency movement and raw material costs.

The tyre maker posted consolidated revenue of INR 41.57 billion for the third quarter of FY26, up about 26 percent year on year. Standalone revenue rose 20.1 percent to INR 39.57 billion, driven by growth across replacement, OEM and international markets.

“This was a good Q3 for us, with more than 20 per cent year-on-year growth on a standalone basis,” said Arnab Banerjee, Managing Director and Chief Executive Officer. “Volume momentum continued across segments, supported by GST rationalisation, improving consumer sentiment and steady recovery in OEM demand.”

Demand outlook remains supportive

Management said the Indian tyre market entered calendar 2025 on a stronger footing, aided by tax reforms, rising electric vehicle adoption and premiumisation. CEAT expects the industry to deliver healthy single-digit growth over the medium term.

“Increasing disposable income in rural markets following robust rabi sowing and kharif harvest completion has been supportive,” Banerjee said, adding that replacement demand for truck and bus radials is expected to remain in the mid-to-high single digits, with seasonal upside during the summer months.

Two-wheeler tyres continued to perform strongly, while OEM demand for medium and light commercial vehicles recovered following GST rationalisation. Passenger vehicle demand is expected to grow at double-digit rates in the near term, supported by easing financing conditions.

International demand for radial commercial vehicle and passenger car tyres remained firm, with India emerging as a credible sourcing base for global OEMs and distributors.

Margins improve despite cost headwinds

Standalone EBITDA rose to INR 5.56 billion, translating into a margin of 14.1 per cent. Consolidated EBITDA stood at INR 5.68 billion, with margins improving both sequentially and year on year.

Gross margins, however, contracted sequentially by about 109 basis points, largely due to currency depreciation and inventory adjustments.

“The depreciation of the rupee and a modest rise in international natural rubber prices could result in a 1 to 1.5 per cent cost headwind over the next few quarters,” said Kumar Subbiah, Chief Financial Officer. “While crude-linked inputs remain stable, currency remains the key variable to watch.”

Standalone profit after tax came in at INR 1.92 billion, compared with INR 2.02 billion in the previous quarter. The decline reflected a one-time provision of INR 578 million linked to new labour code implementation.

“This provision largely relates to past service costs,” Subbiah said. “The ongoing quarterly impact going forward is expected to be minimal.”

Camso integration on track

CEAT said the integration of its Camso off-highway tyre business is progressing broadly as planned. Quarterly revenue stood at about USD 20 million, reflecting the ongoing transition of customer relationships from Michelin to CEAT.

“Most existing customers have approved the business transfer, ensuring continuity,” Banerjee said. “There are some one-time transition and IT costs in Q3, which will not recur from Q4 onwards.”

Management said underlying operating margins at Camso are already in double digits and are expected to improve further as utilisation rises and CEAT gains greater control over sourcing and sales.

Capex remains elevated

Capital expenditure during the quarter stood at INR 2.54 billion, taking cumulative spend for the year to INR 6.73 billion, excluding acquisition-related intangibles.

The board approved an additional INR 13.14 billion investment at the Chennai plant to add 3.5 million passenger car tyres of annual capacity, with completion targeted for the second half of FY28. The project will be funded through a mix of internal accruals and debt.

“Our capex guidance remains broadly in line with earlier estimates,” Subbiah said. “We will continue to monitor leverage closely to ensure balance sheet strength.”

Standalone gross debt stood at INR 29.54 billion, with debt-to-EBITDA improving to 1.25 times.

EV, premiumisation and sustainability

CEAT maintained a strong position in electric vehicle tyres, with more than 30 per cent share in OEM passenger EV tyres and about 20 per cent in two-wheeler EVs. The company continues to invest in premium products, including larger rim-size, run-flat and ZR-rated tyres, to improve realisations.

On sustainability, CEAT announced a partnership with CleanMax to develop 59 MW of hybrid wind-solar capacity, targeting about 60 per cent renewable energy usage by FY27.

“Q3 closed on a strong note, supported by a robust product pipeline and improving customer confidence,” Banerjee said. “We remain focused on sustaining growth while maintaining margin discipline and investing for the long term.”

Citira has expanded its service network in western Sweden by acquiring TH Pettersson, a renowned tyre service company with two shops in the Gothenburg area. This acquisition adds two key service points positioned close to the region's major traffic and logistics hubs, significantly advancing Citira's coverage in this strategic area.

TH Pettersson holds a distinguished place in Swedish commercial history as one of the oldest tyre shops in the country, having been founded in 1923. From modest origins, the business grew to achieve a strong national reputation under the guidance of three generations of entrepreneurs who maintained a long-term value creation and service-driven philosophy. The two well-situated shops will now form crucial new service points within the Citira network.

The business will continue operating with the same team in the same premises, ensuring continuity for customers and staff alike. David Heidenfors, the long-term manager, together with the broader TH Pettersson team, will continue managing daily operations while benefiting from Citira's resources for continued development. As part of this new chapter, both Max Petersfeldt and Mikael Petersfelt will become co-owners of Citira.

David Boman, CEO, Citira, said, “We are very excited that TH Pettersson will join Citira, as we have regarded them as a key player in the Gothenburg area for a long time. The team delivers great service to their customers, which will now come to the benefit of our customers as well. In TH Pettersson, we have a great partner on Sweden’s west coast, which we look forward to further developing and growing together with David, the TH team and Max as a senior advisor.”

Max Petersfeldt of TH Pettersson said, “Joining Citira and a group of like-minded colleagues marks an important milestone in our journey while also allowing us to be part of and contribute to this exciting development in our industry. I am confident that under the continued leadership of David Heidenfors, Citira and TH Pettersson will realise our full potential in the region while allowing us to stay true to our customers, who will find us in the same place with the same team which they have always trusted.”

Bridgestone has renewed its collaboration with game developer Milestone for the launch of RIDE 6, the latest title in the popular motorcycle racing franchise. This edition represents the most comprehensive instalment in the series to date, introducing new motorcycles, diverse terrains and authentic tracks. Continuing its role as the official tyre supplier, Bridgestone brings its real-world high-performance motorcycle tyres into the virtual environment. Players around the world can now experience the same grip and endurance that define the brand’s real-life products across roads, circuits and trails, thanks to the game’s updated dual-physics engine.

A major feature in this edition is the new RIDE Fest career mode, which immerses players in the journey of a professional rider competing against motorsport icons such as Casey Stoner and Troy Bayliss. Within this mode, a dedicated Bridgestone Challenge chapter allows users to test the brand’s tyres across various racing disciplines and surfaces, from endurance events to circuit racing. Bridgestone also sponsors the redesigned Riding School, a training module offering structured tutorials to help players refine their skills. The company’s motorsport expertise, particularly its success in the FIM Endurance World Championship, directly informs the tyre behaviour modelled in the game. Virtual riders must consider tyre degradation, respond to changing track conditions and make tactical choices, mirroring the strategic depth found in real-world racing.

The presence of Bridgestone has been expanded throughout RIDE 6, with enhanced branding featured across menus, tracks and gameplay elements. The tyre lineup itself has grown to include recent additions to the BATTLAX family, such as the RACING BATTLAX V03 slick, engineered for maximum circuit performance and faster lap times, alongside the road-legal RACING STREET RS12, which offers superior dry grip. For the first time in the series, off-road segments are included, enabling players to equip adventure-focused tyres like the BATTLAX ADVENTURECROSS AX41. Other available options include the ADVENTURE TRAIL AT41, the RACING BATTLAX W01 and the HYPERSPORT S23.

With more than 340 motorcycles from 21 manufacturers, all fitted with Bridgestone’s virtual tyre models, the game boasts the most varied selection in the franchise’s history. Built using Unreal Engine 5, RIDE 6 is now accessible on PlayStation 5, Xbox Series X|S and PC through Steam and the Epic Games Store.

Nico Thuy, Director Motorcycle at Bridgestone EMEA, said, “RIDE 6 is the most realistic and wide-ranging entry in the series so far, and that makes it the ideal platform to showcase our large premium motorcycle tyre portfolio and its performance. With expanded modes, new features and a stronger Bridgestone presence throughout the experience than ever before, the game takes our longstanding partnership with Milestone to the next level. Through the RIDE series, we’re both strengthening our leadership in motorcycle tyres and showcasing our racing legacy in a fun, engaging way to riders and gamers worldwide.”

Porsche Carrera Cup North America is entering a new chapter defined by a significant technical partnership and the introduction of an updated race car. A multi-year agreement has been established making Pirelli the official tyre supplier for the championship, marking the first time in the series' six-year history that it will compete on Pirelli rubber. This collaboration reinforces the connection between motorsport engineering and road car performance, a link demonstrated by the bespoke Pirelli P Zero R and P Zero Trofeo RS tyres developed for the road-going Porsche 911 GT3.

The 2026 season will debut the new Type 992.2 Porsche 911 Cup car, an evolution of the brand's successful single-make racer with refinements focused on raceability and handling. It will compete in only four global championships, including the North American series. These cars will be fitted with the Pirelli P Zero DHG tyre, a control tyre already introduced across Pirelli’s global GT championships in 2025. For wet conditions, teams will use the Pirelli Cinturato WHB, the standard wet weather tyre for GT classes since last year.

The P Zero tyres used in the series will carry the Forest Stewardship Council logo, signifying a commitment to sustainable sourcing. This certification ensures the natural rubber originates from forests managed to preserve biodiversity and support local communities, with a supply chain that rigorously separates certified materials from non-certified sources.

The new partnership and the new car will make their on-track debut together during a series-wide test at Sebring International Raceway in mid-February. The 2026 championship season will officially commence at the same venue from 18th to 20th March, running in support of the IMSA WeatherTech Championship’s Mobil 1 Twelve Hours of Sebring.

Volker Holzmeyer, President and CEO, PMNA, said, “Porsche and Pirelli share a deep motorsport heritage and a commitment to innovation that carries from the track to the road. We’re excited to welcome Pirelli to our premier Porsche One-Make series as we usher in a new era with the 911 Cup and new Pirelli tyres beginning in 2026.”

Claudio Zanardo, President and CEO, Pirelli North America, said, “Pirelli is thrilled to partner with Porsche Motorsport North America as the tyre supplier for the Porsche Carrera Cup North America, adding to our extensive portfolio of top-level championships supported worldwide. This collaboration demonstrates Pirelli’s dedication to performance and innovation, bringing race-proven technology from the track to the road. Just as Porsche vehicles set the standard for driving excellence, our P Zero tyres define precision, handling and performance in both competition and everyday driving. With motorsport rapidly expanding across North America, attracting more fans and creating new opportunities to showcase high-performance engineering, we are excited to strengthen our presence and support this momentum. Taking on this challenge alongside Porsche, its teams, drivers and the iconic 911 Cup cars is an opportunity for continuous innovation, collaboration and growth throughout the season.”

Nova Motorsport has solidified its position within historic motorsport by agreeing a significant long-term contract extension with Peter Auto, a leading organiser in the field. This renewed agreement reinforces the British brand’s status as a principal technical collaborator, now with an expanded scope of official supply duties.

Under the terms of the multi-year deal, Nova Motorsport will continue as the exclusive tyre provider for several of Peter Auto’s premier series, including Group C Racing, both Classic Endurance Racing categories (CER1 and CER2) and the 2.0L Cup. The partnership has been formally broadened to now also encompass the Sixties’ Endurance series, a key addition to its portfolio. This season for Sixties’ Endurance is set to run from the Espíritu De Montjuïc event in late March through to the HSR Daytona Classic 24 Hour in November.

The arrangement is a cornerstone of Nova’s historic racing programme, underlining its dedication to supplying proven Avon Motorsport tyre products across Europe’s most esteemed historic platforms. This capability is underpinned by the intellectual property and experienced technical team that transferred to Nova following its 2024 acquisition of Avon Motorsport’s assets from Cooper Tire. Logistical and trackside support for competitors will once again be managed by Peter Auto’s exclusive service partner Sodipneu.

By extending and deepening this relationship, Nova Motorsport strengthens its commitment to the historic endurance racing community. The partnership is poised to support the continued growth and international prestige of Peter Auto’s renowned series, placing Nova at the very heart of the discipline.

Daniel Stanton, Head – Sales and Marketing, Nova Motorsport, said, “We are proud to extend our longstanding partnership with Peter Auto, one of the most respected names in the historic and classic automotive racing community, through a new long-term agreement. This relationship marks the successful transformation of Avon Motorsport into Nova Motorsport, as Peter Auto enters the ASO/ACO era under the leadership of Marc Ouayoun. Historic motorsport sits at the heart of the Nova Motorsport business, and partnering with Europe’s premier historic race championships is the perfect expression of that focus. Adding the Sixties’ Endurance series, which concludes with the HSR Daytona Classic 24 Hour at Daytona Speedway in November, to the Nova Motorsport portfolio accelerates our core strategy and further aligns with our growth targets for the Nova Motorsport brand and Avon and Nova tyre products in North America.”

Marc Ouayoun, Managing Director, Peter Auto, said, “We are delighted to continue and expand our partnership with Nova Motorsport. This collaboration reflects a shared vision based on technical excellence and reliability to ensure authentic and competitive racing across all our series. This partnership also highlights our commitment to historic motorsport and its development, both in Europe and internationally.”