Archive · 21 Jan 2026
CEAT Expects Double-Digit Growth in Q4
CEAT, a tyre company, is expecting good growth in the last quarter of the year.
They sold more tyres and made more money compared to last year.
However, the cost of making tyres is going up a bit, which might affect their profits.
The company is also investing in new factories to make more tyres.
They sell a lot of tyres in Europe and other places, but not much in the US.
Overall, they are hopeful about the future.
CEAT expects double-digit year-on-year growth in Q4 despite margin pressure from rising raw material costs and currency volatility.
The company reported a 20% year-on-year increase in standalone revenue in the December quarter, driven by volume-led growth.
Export growth was over 25% year-on-year, with Europe being the largest market.
GST rate cut in September led to a nearly 10% decline in tyre prices in the replacement market, reviving demand.
CEAT plans to expand production capacity for passenger vehicle and two-wheeler tyres.
- Who
- CEAT Ltd.
- What
- Expects double-digit growth in Q4 despite margin pressure
- When
- March quarter (Q4)
- Where
- India, with significant exports to Europe, Middle East, and other regions
- Why
- Due to volume-led growth, GST rate cut, and cautious optimism on demand
- Revenue Growth
- 20% year-on-year in December quarter
- Export Growth
- Over 25% year-on-year
- GST Rate Cut Impact
- Tyre prices in replacement market declined by nearly 10%
- Raw Material Costs
- Expected to rise by 1-1.5% in Q4
- Natural Rubber Prices
- Risen from $1,700 to $1,800 per tonne
- Currency Depreciation
- Rupee depreciated by 4-5% over recent months
- Key Markets
- Europe, Middle East, Latin America, Southeast Asia, Brazil
- US Exposure
- Under 4% of total exports
