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.”

Comments (0)

ADD COMMENT

Link Copied!

Hankook Tire is supplying its Ventus F200 racing tyre to the HWA EVO.R sedan, competing in the 2026 Nürburgring 24 Hours, taking place from 14 to 17 May in Germany. Serving as the Official Technology Partner of HWA AG, Hankook is providing technical assistance throughout the race weekend with the Ventus F200 fitted to the HWA EVO.R in the open SP-X class for high-performance tuned vehicles. The racing slick is engineered for dry conditions and aims to deliver stable performance under extreme endurance racing demands.

Recognised globally in motorsport, the Ventus F200 incorporates advanced compound technologies that enhance driving performance and achieve roughly a 10 percent weight reduction over its predecessor. The tyre offers strong grip, high-speed stability and precise handling under demanding race conditions. HWA AG, founded by former Mercedes-AMG Co‑Founder Hans Werner Aufrecht, is a noted global motorsport engineering company specialising in high‑performance vehicle development.

This collaboration expands an existing strategic partnership, following Hankook’s original equipment tyre supply for the limited‑production HWA EVO last year. Hankook currently provides several ultra‑high‑performance OE products for that model, including the Ventus evo Z, Ventus evo and Winter i*cept evo3. Moving forward, Hankook plans to strengthen its premium brand competitiveness by deepening cooperation with HWA AG in both OE and motorsport sectors.

Comments (0)

ADD COMMENT

Link Copied!

HS HYOSUNG ADVANCED MATERIALS has secured a place on the Dow Jones Best-in-Class (DJ BIC) Korea Index for three years running, marking consistent recognition from the S&P Global benchmark for corporate sustainability. This index, released by a major global financial information provider, is known as a highly trusted gauge of ESG performance. Membership is limited to the top 30 percent of companies per industry, drawn from the two hundred largest listed firms in South Korea by market value.

In a related achievement, the company also appeared in S&P Global’s Sustainability Yearbook 2026 for the second straight year. The latest assessment reviewed over 9,200 businesses across 59 industries worldwide, and HS HYOSUNG ADVANCED MATERIALS earned a Yearbook Member designation by placing within the top fifteen percent of its global industry.

To drive these results, the firm has built an ESG framework on four pillars: Zero Fatality for safety, Zero Emission for carbon reduction, Zero Waste for circular resource use and Zero Impact for stakeholder accountability. Senior management directly oversees a Sustainability Management Committee and specialised subcommittees, ensuring that ESG strategies are implemented across the entire organisation to boost corporate value.

Jim Jindal Lim, CEO, HS HYOSUNG ADVANCED MATERIALS, said, “Our inclusion in DJ BIC Korea for three consecutive years and our second consecutive listing in the S&P Global Sustainability Yearbook demonstrate that HS HYOSUNG ADVANCED MATERIALS has consistently implemented meaningful changes for sustainable management. We will continue strengthening our response to climate change and enhancing our corporate social responsibility.”

Comments (0)

ADD COMMENT

Link Copied!

Dr Suttipong Angthong, Secretary-General of the Association of Natural Rubber Producing Countries (ANRPC), attended the TRA & TLA Dinner 2026 on 8 May 2026. The high-profile gathering was jointly organised by the Thai Rubber Association (TRA) and the Thai Latex Association (TLA) at the Centara Grand at CentralWorld. The event brought together industry leaders, policymakers and key stakeholders from across the rubber and latex sectors to foster professional relationships and examine the shifting dynamics of the global natural rubber market.

The event served as a critical platform for Dr Angthong to engage in high-level discussions on market sustainability, trade relations and technological advancement. Particular attention was given to the long-term viability of rubber production, improving synergy between producers and exporters and the growing role of latex processing in the modern economy. His presence highlighted the ANRPC’s dedication to supporting member countries through close cooperation with national associations.

Thailand continues to hold a foundational position in the global natural rubber industry. The partnership between the TRA and TLA acts as a key driver of both innovation and regional stability, reinforcing the importance of collaborative efforts to navigate the evolving market landscape.

Dr Angthong said, "Events like the TRA & TLA Dinner are essential for maintaining the pulse of the industry. It is through these partnerships that we ensure the natural rubber sector remains resilient and forward-looking."

Comments (0)

ADD COMMENT

Link Copied!

Continental is preparing to appear at this year’s TOC Europe with a combined offering of advanced tyres and digital management tools. The company’s presence at the event will emphasise its drive to make port logistics both high-performing and resource-conscious.

The exhibition lineup is built around the theme ‘Driven by Excellence’, featuring the ContiConnect digital tyre platform alongside the new DockMaster Radial tyre. The latter is a purpose-built product for harsh port environments, including automated guided vehicles, reach stackers and heavy forklifts. A company representative has explained that every solution is tailored directly to real customer needs in port operations, blending tyre engineering with data services to enable more energy-efficient and digitally managed workflows.

TOC Europe 2026 will run from 19 to 21 May at the Hamburg exhibition grounds. Continental will receive visitors in Hall B6 at Booth B44, where the focus will fall on operational safety, sustainability and efficiency gains.

ContiConnect plays a central role in cutting tyre management costs and streamlining fleet operations. Properly managed tyre pressure can lower fuel use by up to two percent, while continuous monitoring extends tyre life by as much as 20 percent, simultaneously reducing carbon emissions and operating expenses. The system comes in two forms. ContiConnect Lite is a mobile, app-based entry tool requiring no extra infrastructure, whereas ContiConnect Pro delivers real-time data, automated reports and system integration for large fleets.

The DockMaster Radial tyre stands out for its durable, efficient and robust design. A large footprint and maximised tread volume prolong service life, while the radial build lowers heat buildup over long travel distances. Its rolling resistance is lower than that of bias-ply tyres, improving energy efficiency. An integrated sensor tracks both temperature and inflation pressure, while a specialised rubber compound resists cuts, abrasion and cracking. This makes the tyre especially suitable for intense applications with extended operating ranges and punishing ground surfaces.

Beyond products, Continental offers a data-led tyre consulting service to lower total ownership costs and improve resource use. Experts analyse operational data including distance, speed and active cycle time to advise on vehicle deployment, route planning and tyre selection. Detailed usage studies help match the right tyre to each application, reducing premature failures, extending tyre life and delivering clear efficiency improvements for port operators.

Federico Jiménez, Head of Business Development and Product Management for Continental’s Commercial Specialty Tires, said, “We consistently align our solutions with the requirements of our customers in port operations. With our combination of innovative tyre technology and data-driven services, we enable more energy-efficient, digital, and therefore more efficient operations.”

Comments (0)

ADD COMMENT

Link Copied!