CEAT Ltd. reported its strongest annual financial performance in FY2025-26, with consolidated revenue rising nearly 19% to ₹15,678 crore and net profit increasing 48%, as growth in premium tyres, electric-vehicle applications and international markets helped the company negotiate a year marked by tariffs, geopolitical uncertainty and supply-chain disruption.
For a tyre manufacturer, the road was hardly smooth. CEAT, however, appears to have found sufficient traction through stronger operating efficiencies, a richer product mix and broader growth across its original-equipment, replacement and overseas businesses.
Harsh V. Goenka, Chairman of CEAT Ltd., said the Indian economy maintained its momentum despite a difficult global backdrop.
“The Indian economy navigated a challenging global environment and maintained its growth momentum in FY 2025-26, supported by sustained infrastructure spending, tax reforms and healthy domestic consumption.”
He added: “On the global front, tariffs and geopolitical uncertainties weighed on the business environment for most of the year, while the Iran conflict, towards the end of the year, triggered unprecedented supply chain disruptions.”
“Against this backdrop, CEAT delivered a strong all-round performance.”
Consolidated revenue grows nearly 19%
CEAT’s consolidated revenue crossed the ₹15,000-crore threshold for the first time, providing the headline number in a year of broad-based expansion.
“Consolidated revenue for FY 2025-26 crossed an important milestone of Rs. 15,000 Crore and stood at Rs. 15,678 Crore, registering a growth of nearly 19% over the previous year,” Harsh V. Goenka said.
“Net profit grew 48%, reflecting disciplined execution, improved operating efficiencies and healthy growth across key business segments.”
On a standalone basis, CEAT reported revenue from operations of ₹15,215 crore, an increase of 15.5% year-on-year. Earnings before interest, tax, depreciation and amortisation stood at ₹2,042 crore, translating into an EBITDA margin of about 13.4%.
Standalone profit after tax reached a record ₹813 crore, while earnings per share increased to ₹201 from ₹119 in the previous year. Return on capital employed improved to about 21.46%, and cash flow from operations stood at ₹1,786 crore.
The company declared a dividend of ₹35 per share, its highest to date and ₹5 more than in the previous financial year. Total shareholder return during the period was approximately 16%.
Premium tyres begin reshaping margins
Premiumisation remained one of CEAT’s central growth strategies during the year. The company expanded its presence in tyres for higher-end passenger vehicles, performance-oriented models and larger-capacity two-wheelers.
It also continued developing products for electric vehicles, where tyres must accommodate characteristics such as higher vehicle weight, increased torque, greater load-bearing requirements and lower noise levels.
“We also continue to sharpen CEAT’s positioning through premiumisation, technology-led products and deeper customer engagement,” Harsh V. Goenka said.
“Our focused efforts in the key strategic segments of electric vehicles and premium tyres drove strong growth and market share gains across both the categories during the year.”
Anant V. Goenka, Vice Chairman of CEAT Ltd., said the strategy was beginning to have a visible effect on profitability.
“Our focus on market share gains and premiumisation continued to deliver results.”
“The increasing contribution of premium products, particularly in higher-end passenger vehicles and performance segments, is beginning to meaningfully influence both our mix and margins.”
According to the annual report, CEAT secured market-share gains across key replacement categories while strengthening its engagement with vehicle manufacturers. Higher volumes, disciplined cost management and a more favourable product mix supported the improvement in margins.
International business gains momentum
CEAT’s international operations also contributed significantly to the year’s growth, with stronger business in Europe and the United States.
“Our international business contributed strongly to growth, with improved traction across key markets such as Europe and the United States,” Anant V. Goenka said.
“We continue to see significant headroom for expansion globally, supported by a more diversified market presence.”
CEAT currently serves more than 110 countries, while exports accounted for 19% of its standalone turnover during FY2025-26. The company identified the United States, Brazil, the UAE, the United Kingdom and Europe among its important international markets.
During the year, the company also entered or expanded into markets including Japan, Australia, New Zealand, Estonia and Lithuania. It strengthened distributor relationships and supported outsourced local manufacturing in Indonesia, according to the report.
CAMSO integration expands off-highway presence
A major strategic priority is the integration of the CAMSO compact construction off-highway tyre and track business acquired from Michelin.
“The integration of the CAMSO business is progressing as planned and represents an important step in strengthening our position in global Off-Highway segments,” Anant V. Goenka said.
The acquisition gives CEAT greater exposure to specialised applications in construction, agriculture and material handling. The business remained in a transition phase during FY2025-26, with the company gradually transferring customer-interface and supply-chain capabilities.
CEAT said the integration could create synergies across products, markets, distribution channels and relationships with global original-equipment manufacturers. It also gives the company access to higher-value markets beyond conventional passenger and commercial-vehicle tyres.
The company incurred capital expenditure of approximately ₹1,315 crore during the year, including about ₹239 crore towards the acquisition of intangible assets related to the CAMSO business. Investments were also directed towards capacity expansion, factory modernisation, technology upgrades and product development.
CEAT plans AI labs and wider adoption of artificial intelligence
Digital transformation is becoming another pillar of CEAT’s strategy, with the company seeking to integrate artificial intelligence into routine operations rather than keeping it confined to a handful of technology teams.
“Operational excellence and digital transformation remain central to our growth journey,” Harsh V. Goenka said.
“We also aim to democratize AI capability in the organisation and embed AI in regular workflows and decision-making.”
“To enable this, we are strengthening our data architecture, instituting governance for responsible and compliant use of AI as well as setting up AI labs for exploring usage possibilities.”
The company is developing a centralised data platform and deploying advanced analytics across manufacturing, supply chains, customer engagement and decision-making.
CEAT also said it became the first tyre brand to deploy an agentic, generative AI-powered chatbot on its website. The report claimed that digital lead-generation initiatives contributed to a 50% increase in dealer footfalls, showing that artificial intelligence may now be helping sell rubber as well as analyse it.
Anant V. Goenka said: “Alongside this, our digital transformation journey is advancing steadily, with increasing adoption of data and AI-driven solutions across the organisation.”
“These initiatives are improving agility, decision-making and efficiency across the value chain.”
R&D investment supports premium and EV products
CEAT continued investing in research and development, materials science, testing infrastructure and digital technologies during the year.
Standalone R&D investment stood at ₹240 crore. The company had 214 active research projects and had filed 214 patents cumulatively, including eight patents added during FY2025-26. Its product portfolio covers more than 2,300 stock-keeping units across different mobility segments.
The company also established the R&D Ambernath Compound Laboratory, strengthening its capabilities in tyre compounds and materials development.
Its research priorities include high-performance tyres, electric-mobility products, sustainable materials, durability, safety and lower-noise applications. CEAT said it was also using digital tools, including generative AI, to improve product quality, shorten development cycles and support international testing.
Input costs remain a concern for FY2026-27
Despite the record performance, CEAT has adopted a cautious outlook for the current financial year. Rising raw-material prices, freight costs, currency fluctuations and geopolitical developments could put pressure on margins and supply chains.
The company said it would respond through cost optimisation, pricing measures, supply-chain diversification and a continued shift towards premium and specialty products. Completing the CAMSO integration, expanding internationally and maintaining capital discipline will remain key priorities.
CEAT’s FY2025-26 performance illustrates how India’s tyre industry is moving beyond traditional volume growth. Premium vehicles, electric mobility, overseas markets, specialised off-highway applications and artificial intelligence are increasingly shaping the sector’s economics. The next test will be whether those new sources of traction can keep the company moving when input costs and global uncertainty once again make the road less predictable.
