Despite facing global and macroeconomic headwinds, CEAT Ltd, one of India's leading tyre manufacturers, is optimistic about maintaining double digit revenue growth in FY2025-26. The company aims to outpace industry trends, continuing its strong performance from the previous fiscal year.

"In FY25, we delivered double digit growth and outperformed the industry. Despite macroeconomic challenges like the US tariff, we are targeting the same momentum in FY26", said Kumar Subbiah, CFO of CEAT, in a statement to The New Indian Express. Revenue Up, Profit Slips CEAT reported a 14.3% year-on-year increase in Q4 revenue, reaching Rs. 3,420.6 crore, up from Rs. 2,991.9 crore in the same period last year.

However, net profit declined by 8.4% to Rs. 99.5 crore, down from Rs. 108.6 crore in Q4 FY24. Despite the profit dip, CEAT shares surged 8%, signaling strong investor confidence in the company's future growth plans.

Growth Drivers: Replacement and International

Markets Subbiah attributed the growth to robust performance in key segments. The replacement market accounted for 55% of total revenue, while the international business contributed 20%.

Looking ahead, CEAT is aiming to increase its overseas revenue share to 25% within the next two years, underscoring its strategic focus on global expansion.

Rs. 1,000 Crore Capex for Capacity Expansion

To support its growth ambitions, CEAT has allocated Rs. 900-1,000 crore in capital expenditure for FY26. The investment will primarily fund capacity expansions for passenger car and truck/bus radial tyres.

This follows a capex of Rs. 946 crore in FY25, indicating the company's continued commitment to scaling operations and meeting growing demand. China's Moves Under Watch Subbiah clarified that CEAT's exposure to the US market remains below 5%, limiting any direct impact. However, he warned that increased tyre dumping by China in global markets could pose indirect risks. "In India, antidumping duties are in place, particularly for truck and bus radials.

But if Chinese tyres flood other markets we compete in, we'll need to reassess the competitive landscape", he noted. Easing Raw Material Prices May Boost Margins Subbiah also pointed to a softening trend in raw material prices, which could benefit margins in the coming months.

Crude oil prices are stable at around $65 per barrel, and although international natural rubber prices remain elevated compared to last year, they have corrected by about 10% recently. "We expect the impact of falling input costs to reflect in our performance in the near term", he said.