CEAT Limited, an RPG Group company, has announced its unaudited financial results for the quarter ended June 30, 2026, reporting strong revenue growth despite cost pressures arising from higher raw material prices. The company’s Board has also approved an investment of ₹1,205 crore to expand manufacturing capacity in the two-wheeler tyre segment, reinforcing its long-term growth strategy.
On a consolidated basis, CEAT reported revenue of ₹4,318 crore, registering a 22% year-on-year growth. EBITDA margin stood at 8.56%, while net profit for the quarter was ₹4 crore.On a standalone basis, revenue increased 18% year-on-year to ₹4,163 crore. The company reported an EBITDA margin of 9.13% and a net profit of ₹98 crore.
Commenting on the quarterly performance, Arnab Banerjee, Managing Director & CEO, CEAT Limited, said, “The first quarter was marked by significant volatility in raw material prices, driven by the continuing geopolitical situation in West Asia, which put pressure on margins across the tyre industry. Despite these challenges, we achieved robust double-digit revenue growth, supported by healthy demand across key business segments and high levels of capacity utilisation. We implemented calibrated price revisions to partly offset higher input costs while maintaining our focus on market competitiveness and profitable growth. As we move into the second quarter, we will continue to adopt a disciplined approach to pricing and operational efficiency.”
Providing an update on the company’s financial position, Kumar Subbiah, Chief Financial Officer, CEAT Limited, said, “Raw material inflation continued to impact profitability during the quarter, prompting cumulative price increases of around five per cent. We expect input costs to remain elevated in the near term and will continue balancing pricing actions with cost optimisation measures to protect margins. During the quarter, we invested approximately ₹300 crore in capital expenditure, primarily to expand manufacturing capacity in line with future business requirements, while maintaining prudent control over discretionary spending and routine capital expenditure.”
Reflecting confidence in future demand, the Board of Directors approved an investment of ₹1,205 crore to expand production capacity for two-wheeler tyres. The proposed investment is aimed at strengthening CEAT’s manufacturing capabilities and supporting the company’s long-term growth plans in one of its key business segments.
CEAT said demand remained healthy across major product categories during the quarter, enabling strong revenue growth despite a challenging operating environment. The company continues to focus on expanding capacity, improving operational efficiency and maintaining financial discipline while responding to changing market conditions.
Founded in 1958 and part of the RPG Group, CEAT Limited is one of India’s leading tyre manufacturers with a significant presence in international markets. The company manufactures more than 41 million tyres annually across product categories including two and three-wheelers, passenger vehicles, utility vehicles, commercial vehicles and off-highway vehicles.
Established in 1979, RPG Group is one of India’s diversified business groups with interests spanning infrastructure, tyres, pharmaceuticals, information technology, specialty businesses and emerging technology-led ventures. The Group has an annual turnover of approximately US$5.2 billion.
