CEAT Steps Up Capex as Strong FY26 Performance Meets Rising Cost Pressures
- By Sharad Matade
- May 05, 2026
CEAT Limited plans to invest INR 13-14 billion in fiscal 2027 to expand capacity and support growth, as the tyre maker rides strong momentum from a record FY26 while preparing for a near-term squeeze from raw material inflation.
The capital expenditure programme—up roughly 25 percent from the previous year—comes as capacity utilisation remains elevated at 85–90 percent across categories, necessitating incremental investments to meet demand.
Chief Executive Arnab Banerjee said the company would remain “careful” in the first quarter amid volatile input costs and macro uncertainty, before scaling up spending as conditions stabilise.
Additional investments are also being channelled into integrating the CAMSO off-highway tyre business, with about USD 30 million earmarked for upstream capabilities such as compound mixing and calendering. The integration is expected to be completed by the end of FY27, unlocking margin benefits from FY28.
Record year underpins expansion
The investment push follows a strong FY26 in which CEAT delivered double-digit growth across segments.
Standalone revenue rose 15.5 percent for the full year, while fourth-quarter revenue grew 18.2 percent, crossing INR 150 billion in annual revenue for the first time.
Growth was driven by a combination of volume expansion and pricing, aided by GST rationalisation that improved affordability and boosted demand across replacement and OEM channels.
Replacement demand remained robust, particularly in two-wheelers, while OEM growth was led by passenger vehicles and farm equipment. International operations also rebounded strongly, with high growth in Europe and the U.S.
Profitability milestones
CEAT crossed a key profitability threshold, with EBITDA exceeding INR 20 billion for the first time and margins holding at 13.4 percent for the full year.
Net profit stood at INR 8.12 billion, supported by operating leverage, cost discipline and an improved product mix.
Finance chief Kumar Subbiah said the company’s balance sheet remains “strong enough to provide growth capital”, with debt levels stable at around INR 30 billion and leverage metrics improving.
Global expansion and premium focus
CEAT is deepening its international footprint, setting up local entities in Germany, the UK, France and Poland to strengthen distribution and customer engagement.
Exports now account for over one-fifth of standalone revenue, rising further when including CAMSO, as the company expands in higher-margin markets.
The tyre maker is also focusing on premiumisation, with increased sales of larger passenger vehicle tyres and high-performance two-wheeler tyres, alongside a growing presence in electric vehicle segments.
Digital and EV strategy
The company is investing in digital infrastructure, including a centralised data lake and AI-led analytics capabilities, aimed at improving operational efficiency and decision-making.
In electric mobility, CEAT holds about 29 percent share in passenger EV OEM tyres and 18% in electric two-wheelers, positioning itself to benefit from the sector’s growth.
Cost headwinds loom
Despite strong fundamentals, CEAT faces mounting cost pressures.
Raw material costs—linked to crude oil and natural rubber—are expected to rise sharply, with management guiding for a 15 percent increase in the first quarter of FY27.
To mitigate the impact, the company is implementing price increases of up to 10 percent in the replacement market, though pass-through in OEM and international segments will occur with a lag.
Executives cautioned that demand may moderate as higher prices take effect, particularly in price-sensitive categories such as commercial vehicles.
Outlook
CEAT expects demand to remain broadly supportive, underpinned by rural cash flows, replacement cycles and ongoing economic activity, though growth is likely to moderate from FY26 levels.
“Structural demand drivers remain in place,” Banerjee said, adding that the company is positioned to navigate near-term volatility while sustaining long-term growth.
Bridgestone Appoints Stefano Sanchini As President Of Europe Sales
- By TT News
- September 19, 2026
Bridgestone has announced a European leadership appointment aimed at sharpening customer focus, streamlining engagement across product groups and supporting its ongoing growth plans. Stefano Sanchini will become President, Europe Sales, effective 1 October 2026, leading the company’s European sales organisation across both Consumer and Commercial segments.
The expanded role unites sales activities spanning passenger car, truck and bus, agriculture, off-the-road, motorcycle and original equipment. Sanchini brings over 20 years of international leadership experience in the automotive and tyre sectors, with a career covering Europe, Middle East, Africa and India. Since joining Bridgestone in 2017, he has held several senior positions, including Managing Director of Bridgestone India.
Most recently, as Vice President for Consumer Replacement in Europe, he helped strengthen customer engagement, commercial performance, profitability and regional market growth. Bridgestone said the appointment underscores its commitment to customer relationships, commercial execution and simpler cross-market operations. Sanchini will pursue sustainable growth while developing capabilities and partnerships supporting the company’s long-term European strategy.
Mete Ekin, Group President EMEA, said, "Our customers increasingly operate across multiple product categories and expect a consistent experience wherever they engage with Bridgestone. By bringing our sales activities together under one European structure, we are creating a simpler, more connected organisation that will help us respond faster, collaborate more effectively and continue building strong partnerships with our customers."
Yokohama Europe Appoints Giuseppe La Iacona To Lead Southern Operations
- By TT News
- September 18, 2026
Yokohama Europe has appointed Giuseppe La Iacona to a series of senior leadership roles as the company seeks to strengthen its position across the region.
La Iacona joined the business on September 15 and will assume responsibility for supporting growth and organisational consolidation in the European market.
He brings more than 20 years’ experience in the tyre industry, spanning sales, marketing, business development, country management and international customer relations. He has held senior roles across several European markets, developing experience in managing local dynamics while driving cross-border business expansion.
Reporting to Takashi Maki, La Iacona has been appointed General Manager for southern Europe, where he will lead a newly created regional cluster covering Italy and France. The role is intended to improve coordination and operational synergies between the two markets.
He will also serve as Chief Executive of Yokohama Italia, with overall responsibility for the Italian subsidiary, alongside taking on the role of head of international customers. In that capacity, he will oversee the management and development of clients operating across multiple European markets, with the aim of creating a more consistent commercial approach and strengthening collaboration between subsidiaries.
His remit includes improving organisational alignment and fostering closer cooperation between markets and customers as the company expands its European operations.
“I am very pleased to welcome Giuseppe to YOKOHAMA Europe at an important stage in our development,” said Maki. “His extensive international experience, deep knowledge of the tyre industry and ability to work across different markets will be valuable assets as we continue to strengthen our European organisation and pursue sustainable growth.”
La Iacona said: “I am excited to join YOKOHAMA Europe and to contribute to the company’s next phase of growth in Europe. YOKOHAMA has a strong heritage, a distinctive brand and significant opportunities across the European market. I look forward to working closely with our teams, customers and partners across countries to further develop the business and strengthen our presence in the region.”
Özka Tyre Appoints Mehmet Yüksel As New Chief Operating Officer
- By TT News
- September 18, 2026
Özka Tyre, a prominent Turkish manufacturer of tyres for agricultural and construction equipment, has reinforced its leadership team as part of a broader push towards global expansion and technological modernisation in production. The company has appointed Mehmet Yüksel as its new Chief Operating Officer, bringing aboard an executive with extensive senior experience from Goodyear’s Luxembourg-based international organisation.
In his new role, Yüksel will oversee functions central to Özka’s production and operational strength. His responsibilities encompass production, quality, research and development, planning, investment and projects, electricity and maintenance, occupational safety and quality management systems, positioning him to steer critical areas of the company’s industrial performance.
Driven by investments and a focus on advancing its manufacturing strength, Özka continuously monitors shifts in the worldwide tire sector, particularly technological progress in Europe, and uses those insights to shape its future production infrastructure. As new investments prepare to elevate its output capacity and technical systems, the firm is simultaneously bolstering its organisational framework to sustain that transformation.
Cabot Names Steve Delahunt As Interim CFO
- By TT News
- September 16, 2026
Cabot Corporation has named Steve Delahunt, currently Vice President and Corporate Treasurer, to assume the Chief Financial Officer role on an interim basis starting 1 October 2026. He will hold the position while Cabot continues searching for a permanent finance chief.
The interim appointment follows the previously disclosed leadership transition in which Erica McLaughlin, Executive Vice President, Chief Financial Officer and Head of Corporate Strategy, will become President and Chief Executive Officer on the same date. McLaughlin succeeds Sean Keohane and will relinquish her CFO duties at that time.
Delahunt brings over three decades of finance and treasury experience, including nine years leading Cabot's investor relations function through January 2026. As Corporate Treasurer, he oversees global treasury operations, capital markets strategy, liquidity management, banking relationships, risk management and pension investments. He has been central to Cabot's capital allocation, financing, investor engagement and strategic growth initiatives, as well as strengthened shareholder relations during his investor relations tenure.
McLaughlin said, “Steve is a highly respected finance leader with deep knowledge of our business, strong relationships across our global organisation and a proven track record of disciplined financial leadership. As we continue executing our strategy and building on our strong financial position, Steve’s experience, judgment and understanding of our business make him exceptionally well suited to lead our finance organisation while the Company conducts its search for our next Chief Financial Officer.”
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