Ceat sees “healthy single-digit growth” outlook as Q3 earnings rise

Mumbai, India – Ceat Ltd has reported a strong third-quarter performance with the Indian tire positioned for “healthy single-digit growth” over the next five years.

For the quarter ended 31 Dec 2025, the Mumbai-based tire maker reported earnings (EBITDA) of INR5.7 billion, up 64% year-on-year.

Sales for the period grew 26% year-on-year to INR41.5 billion, driven by a 20.9% increase in volumes, Ceat reported 20 Jan.

Ceat linked the volume growth to increases across replacement, OEM and export businesses.

Replacement volumes grew at “mid-teens” rates, supported by strong passenger car demand following goods & services tax rationalisation, explained managing director and CEO Arnab Banerjee.

Two-wheeler replacement volumes grew in “high-teens”, backed by both urban and rural demand, he said during a 20 Jan earnings call.

OEM volumes grew strongly year-on-year across segments, with “very strong double-digit” growth in truck and bus radials and farm tires.

Meanwhile international volumes rose “in the 20s”, aided by improved channel access in several markets.

Growth in the US was constrained by ongoing tariff headwinds, said the Ceat leader.

Ceat said its market share increased across truck and bus radials and motorcycles in replacement, with only a “marginal drop” of less than 1% in scooters and passenger car tires.

OEM share rose across passenger and truck segments, while export share increased across all categories.

Commenting on the market outlook, the Banerjee said the Indian tire market delivered an “upbeat finish” to calendar 2025, helped by tax revisions.

The supportive tax system, “improved affordability and overall consumer sentiment”, driving broader participation across both urban and rural markets in OEM and replacement segments, he added.

Furthermore, he said, “increasing EV adoption and ongoing premiumisation trends are likely to position the tire industry for a healthy single-digit growth through fiscal year 2031 (ending March 20231).”

On Camso integration, the Ceat leader said the transition is “progressing smoothly”, with key sales hiring completed and plant operations running steadily.

The company is taking over direct customer relationships from Michelin, with the “majority of existing customers” having approved the business transfer.

Camso is currently operating at around 50% utilisation, with further ramp-up expected over the next few quarters.

One-time transition costs impacted profitability in the third quarter but the tire maker does not expect them to recur from fourth quarter onwards.

“It will take three to five quarters more to control the entire value chain,” said the Ceat leader, adding that margin profiles are expected to improve as volumes scale.

Overall capacity utilisation, he concluded, stood at 80%–85%, with capex guidance remaining unchanged from previous quarters.